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The purpose of this research report is to provide an overview of China’s economic growth in relation to the long term economic growth drivers. Critical assessment will be made on the growth drivers to determine whether they lead to long term economic growth.

Nowadays, China has become the second largest economy in the world. The GDP (gross domestic product) of china was growing at 9.7% per year in average since 1978, which the year of Chinese “open door” politic founded. China also has become the biggest producer and consumer in many key agricultural and industrial markets and the largest FDI recipient among the developing countries. The performance of china in developing of economy is called “china’s economic miracle”, which be studied by many economists. However, there are also bad results with the development of economy in china such as environment disruption, corruption and

China has reached a milestone in terms of achieving its centenarian goal of making China a prosperous nation once again. One of the ways that it has done this is by having steady economic growth even in the midst of an economic crisis. Not only has China’s economy grown, but its standard of living has also improved, it has achieved this by spending 70 percent of its fiscal revenue towards improving people’s standard of living. China has also pushed more anti-corruption reforms and has made efforts towards widening its economy by setting up freer trade.

The rise in China from a poor, stagnant country to a major economic power within a time span of twenty-eight years is often described by analysts as one of the greatest success stories in these present times. With China receiving an increase in the amount of trade business from many countries around the world, they may soon be a major competitor to surpass the U.S. China became the second largest economy, last year, overtaking Japan which had held that position since 1968 (Gallup). China could become the world’s largest economy in decades.

Throughout time, many countries have needed to implement some sort of economic reform in order to strengthen their economy so that they can be more of a power on the world stage and to stabilize their country. The Chinese reforms were long in the making, an unfolding process that had spanned most of the 20th century and, unlike other countries such as Russia who were trying to do the same thing but whom eventually failed, China prospered, and increased its economy greatly. China has had the fastest growing economy in the world for the past two decades, with an annual growth rate of approximately 10 percent since the economic reforms in 1979, and now has the second largest GDP in the world, second only to the USA. Starting in 1979 they

Wing Thye Woo, author of “The Real Reasons For China’s Growth,” believes China’s economic growth could be due to privatization of the economy through experimentation that eventually creates a market reform. “This economic experimentation entails the privatization of most of the state-owned sector, which would interim reduce legal discrimination faced by non- state and non-collective forms of ownership. Implies that this privatization would eventually produce a market economy integrated in the internal division of labor and would increase China’s economic opening to the rest of

The author examines the proposition by Larry Summers, the United States Treasury Secretary, on the economic approach presented by China and India in regard to the next decade. Larry Summers observes that there is no certain growth in China, thus he urges people to deviate from the reliance on the predictions of sudden growth in Communist China, using what they term as Asiaphoria (WSJ). The most significant and acknowledged fact on cross national growth is the regression of data in relation to the mean. The authors argue that the evidence of continuous national growth in a period of a decade does not present a guarantee for continued growth. On the contrary, quick national growth has been noted to lead to a slump in the rate of economic growth.

Furthermore, the argument that china experienced opportunity costs as a result of the urban state-centric growth model remains convincing, as the Chinese economy and society deteriorated as a result of these reforms. Some of the greatest costs endured were stagnant household income, increased illiteracy and collapse of health care systems which Huang clearly rests the blame on the1990s reforms. On the other hand, I feel that Huang does not explore the nature of why the Chinese government employed economic reforms that shifted more focus on urban areas. The decentralized policies pursued in the 1980s led to a decrease in government revenue and periods of increased inflation, which caused major urban demonstrations. The reforms of the 1990s were a reaction to consequences of the 1980s, the Chinese government-almost- had to employ these new reforms in order to mitigate demonstrators, solve the economic problems brought on by the 1980s and legitimize its power. Huang place too much focus on the leadership change post-Tiananmen as reason for increased urban shift. In addition, I am not fully convinced after reading Huang’s Capitalism with Chinese characteristics that China could have continued the course of the 1980s, as a country’s economy grows it is expected that there will be a shift

“China is confident and capable of maintaining a reasonable growth rate thanks to its economic structural reforms and emerging new sources of growth” –

From April to June 2005, India’s GDP grew at 8.1 per cent, compared with 7.6 per cent in the same period the year before. More impressively, India is achieving this result with just half of China’s level of domestic investment in new factories and equipment, and only 10 per cent of China’s foreign direct investment…

Since the economic reform, China’s economy system was able to create a rapid growth of the economy, turning China into one of the world 's largest economies. As a communist state, the country has implemented a socialist market economy, which is based on the control by the state and an open-market economy.

China has increasingly liberalized their centrally governed economy into a market-controlled economy and continuing this trend is likely to prove to be beneficial. Exploring the past, we will see where the influence for liberalization came from. How liberalization has allowed China to be where it is today as an economic super power and how it will influence the future of China’s development and association with the world economy.

China is the second leading global economy and represents the world’s largest economic growth in recent years.

The article of Yasheng Huang，named how did China take off，discussing on economic growth mechanism, mainly come to China’s economic reform had the process of financial liberalization. Furthermore, he pointed out that political reform, financial liberalization and the development of township enterprises are the key focus on China’s development.

For the last two decades, both India and China have grown at twice the global rate and If this trend continues for next few decades, with their vast labor supply, favorable demographics, and aspirations for reaching the developed world per