Chin An Economic Power House

1210 Words Sep 24th, 2015 5 Pages
Seemingly transformed overnight; China has become an economic power house. In truth, however, China has been growing now for more than 30 years. Since it’s initiation of economic reforms and trade liberalization in 1979. China is one of, if not the fastest growing economy world-wide, averaging nearly 10% growth GDP (Growth Domestic Product). (Morrison, 2015) This financial revolution began with a series of reforms. One was designed to revitalize the state sector and save socialism, others began as more grass root initiatives that led to free market capitalism. (Wang, 2013). China began to change their investments from producing capital goods to producing more consumer goods. They allocated more money to agriculture, and the government raised pricing for the agricultural products and increased grain import. After a series of painful events China began to privatize farming. This led to the de-collectivization of agriculture (Wang, 2013)
The de-collectivization of farming meant that the local townships and villages had to enter into the market and operate as if they were a real business. With no access to guaranteed raw materials from the state. They had to purchase those essential items from the black markets, generally at a higher price. They were also excluded from the state-controlled distribution systems, which is where they would have normally sold their products. This obstacle forced them to travel all over China to find markets for their goods. (Wang, 2013) By no…
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