China’s Economic Growth Assignment PDF

Added on - 03 Aug 2021

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China’s Economic Growth
Principles of Economics
Introduction
China's fast economic growth has been incredible for the last three
decades since 1978. According to the World Bank, the annual GDP growth
has risen over 10% a year (Figure 1) and taken over 850 million people
out of poverty. Initiating opportunities for farmers 'costs and possession
contributed to subsequent free market purchases. However, owing to its
large availability of workers, low job costs, secure political and economic
environment and pro-FDI policies, China has become one of the most
attractive FDI destinations in the world. Low-Cost labour production has
benefited China’s economic growth as well.
Economic Reforms
China introduced many economic reforms starting in 1979. The central
government introduced farmers 'buying and ownership opportunities to
sell a portion of their products on the open market. Furthermore, the
government set up four special economic zones along the coast to draw
international investment, raise exports, and bring high-tech goods into
China. Provincial or municipal governments, usually permitted to work and
to function in the field of free-market policy, rather than under the
supervision and regulation of state planning have been granted economic
power over different businesses. Citizens have also been allowed to
launch companies themselves. Additional coastal regions and cities have
been identified as open towns and emerging zones, allowing them to
experiment with market policies and offer tax and trade opportunities that
draw foreign investment.
Foreign Direct Investments
We should accept that China has made some enormous strides in
becoming one of today's fastest rising economies over the past three
decades since the reforms of the late 1970s. Promoting the inflow of
foreign direct investment (FDI) is an essential part of the cycle of
economic change. China has been one of FDI's most popular destinations,
following more than 30 years of economic change. China's growing
openness to foreign direct investment has greatly contributed to its
exceptional success in production. While being a developing economy,
China's international trade and Gross Domestic Product (GDP) increased
by an average of around 15 percent and 9 percent annually from 1979 to
1997 respectively, 8.7 percent in 2009, and the actual GDP, according to
the World Bank, recently expanded at an average annual pace of 10
percent over a span of twenty-five years. Data also reveals that the stock
of FDI in China as of 1990 was less than $19 billion, and in 1999 it
increased to more than $300 billion.
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