Chinese Economic Revolution Research Paper Example | Topics and Well Written Essays - 1250 words

Chinese Economic Revolution - Research Paper Example As a result there was a wide variety of goods and services to choose from. Chinese producers were also able to export their goods and expand their businesses overseas. By the late 1980’s these reforms had accomplished extraordinary results: incomes increased, more consumer products, food and housing was made available and the country experienced high growth rates. The economic reforms were Chinese government’s way to emphasize an increase production, consumption and people’s income as well as advancement in technology without it having an adverse impact on budget deficits, inflation and unemployment. The first of these economic reforms were introduced in the agricultural sector. Under the agricultural reforms, agricultural land was divided among farmers who became owners of the lands they worked on. The farmers were allowed to keep the agricultural output if they agreed to give a small share of it to the government. This was a popular move among the farmers who f ound a way to increase their incomes. The result of these reforms was a dramatic increase in production of agricultural goods and this move stimulated the growth in the agricultural industry. Farmers were also able improve their standard of living as the reforms allowed them to increase their income by producing more goods (Myers 1991). Foreign trade played a significant role to boost China’s economy once the new economic reforms were introduced. In the years preceding the economic revolution foreign trade rarely contributed more than 10% to China’s GDP as the country mostly relied on self-sufficiency. However after the reforms the contribution increased significantly and by 1986 foreign trade contributed to 36% of the... The modern world has become familiar with the phrase ‘Made in China’. Chinese goods and services are being sold all over the world. There is clearly a shift in economic power from the developed West to China and India. The remarkable growth of China can be credited greatly to the Chinese Economic Revolution that occurred in the late 1970’s. The remarkable growth of China can be credited greatly to the Chinese Economic Revolution that occurred in the late 1970’s. In 1978 Deng Xiaoping introduced economic reforms in China. There were two phases to the reforms. In the first phases focus was on the countryside. A ‘Household Responsibility System’ was introduced which made peasants, working on farms, owners of those lands. The second phase of these reforms focused on industrialization and worker welfare as well as on enterprises. One of the key changes as a result of these reforms was that control was shifted from state-owned to private enterprise. These reforms were against the communist philosophy as they supported a free-market system. These reforms helped arouse a sleeping economic giant from its slumber and take the world’s economic stage by storm. The reforms encouraged private entrepreneurship, foreign investment and foreign trade, reduced government control with focus on free-market and education of the labor force among others. The Chinese economy will continue to grow and maintain its average growth rates of 10% per annum till 2020.