Chinese Economy

Chinese Economy 0
Chinese Economy
Student’s Name

1
Chinese Economy
Q1
China’s economic system is guided by the communist party of China that follows the
Socialist Market Economy. The Communist Party runs the country with a vision. It is
influenced by various factors such as market forces and also it includes the involvement of
capitalists, although the Party does not support the capitalist run. A country loses many of its
financial and technical advantages by isolating itself economically from the rest of the world.
Therefore, China's Deng Xiaoping opened the Chinese economy for the world; he invited
foreign companies to invest in the Chinese industries (Spence, 2011).
Q2
China has undergone through a transition process in the last decade, a number of the
initiative was undertaken and various new policies were introduced. China has been well
known for its manufacturing units, it now wants to expand its horizons in the service led
industry.
The change in the economic model brought a more-than-respectable growth rate of
6.5 percent in China’s economy, which was impressive after an extended period of slow
growth. This recovery in the economy played a critical role in the growth of export demand
and revenue. For facing the slow growth for 6 years China started putting extra effort with
greater momentum in designing and executing essential policies and reforms that help in
promoting growth that is based upon quality, sustainability, and efficiency – factors that now
trump speed and size in their importance (World finance, 2019).
Q3
China has adopted various methods or derivative to stimulate growth in the economy.
Some of the trends that drive the economic growth of China is mentioned below (Forbes,
2019 a):
 China has now shifted the focus of investment from mining to dinning
 Instead of the flow of capital in one-way china now, follows the two-way flow of
capital.
 Designing policies that work in the direction of consumer leverage such as car
policies