The strength of the Chinese economy
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From its founding in 1949 until the end of 1978, the economy of the People’s Republic of China was built on the Soviet model of the central planned economy. There were no private companies and no capitalism. Mao Zedong pushed the country into a modern communist industrial society through the Great Leap Forward. After Mao’s death and the end of the Cultural Revolution, Deng Xiaobengo began the new Chinese leadership with economic reforms and a transition to a mixed market-oriented economy under one-party rule. China’s economy is characterized by a market economy based on private ownership.
Aggregate agricultural policy has been dismantled and agricultural land has been privatized to increase productivity.
A wide range of small enterprises was encouraged while the government relaxed price controls and encouraged foreign investment. China has focused on foreign trade as a major means of growth, leading to the establishment of special economic zones first in Shenzhen (near Hong Kong) and then in other Chinese cities. The inefficient state-owned enterprises were also restructured by introducing the Western system into the administration while the unprofitable firms closed, resulting in huge job losses.
Shanghai Securities Market Building in Pudong Center in the financial center of the city.
The rapid growth of China’s economy and industry is due to Deng Xiaoping’s policy, which began in the late 1970s and 1980s to send missions to Western countries to learn engineering, economics and modern management methods for economic development in the country. It relied on these so-called “technocrats” to solve China’s problems and develop and operate the Chinese. The technocrats were the most reliable elite in solving problems in industry and practical development and moving from a purely agricultural society to an industrial society. After 1985 the Central Council – the highest council of the Communist Party – dominated by the technocrats from other deputies. The ruling group has become the majority of the technocrats, and they have followed this path to this day. The ruling group in China is currently one of the world’s most prominent politicians in engineering, economic and management sciences. Their education was mainly in the Western world. They still send missions to the best schools of economics, science and engineering in Britain and the United States to acquire knowledge and introduce it to China Popular.
Since the economic liberalization of 1978, the economy of the People’s Republic of China, based on investment and export, has grown 70 times and has become the fastest growing major economy in the world. The Chinese economy now ranks second in the world in terms of nominal GDP at 34.06 trillion yuan, or 4.99 trillion US dollars, although per capita income is still low at $ 3,700 and the People’s Republic of China is close to 100th among the world’s countries.