The Economic Development of People's Republic of China

Under Premier Deng Xiaoping, the communistic party began a process of economic liberalization in 1978 which subsequently led to the ending of agricultural communes, the creation of " spare economic zones," and an initial attempt at privatizing stir-owned industries ("China mercantile Guide," 1999, p. 8).

From 1953 on, the Chinese delivery was subject to central control within the framework of five-year plans. The Eighth Five-Year Plan (1991-1995) and 10-year development program (1991-2000) called for comely annual GNP growth of 6 percentage. It was hoped that over the decade, the arrange of population increase could be restricted to an average of 1.25 percent per year. Economic reforms were to continue, and the planned economy was to be combined with commercialize regulation. In 1978, a process of reform (the open room access policy), was introduced to decentralize the economic system and to attract overseas investment. The state monopoly on foreign trade was gradually relinquished, commercial tie in were diversified, and the special economic zones were established. Measures to reduce the resultant high pass judgment of inflation were introduced in September 1988, followed by additional austerity programs implemented in July 1993 ("The Real Leap," 1999, p. 25).

On the surface, China's transformation from a centrally directed to a "socialist market" economy appeared to be a success. According to the World Bank, China in a flash boasts

China Country mercenary Guide. (1999). Washington, DC: Department of Commerce International Trade Administration.

Against this backdrop, the inclination to direct and reallocate China's internal resources and foreign investment toward fall back hinterland regions may prove ineffective. The experiences of the Western market economies as well as the former Soviet Union show that efforts to disperse industry in some sort of "geographically equitable" manner gravel usually failed. In every event, they have been quite expensive and have resulted in the sedate misallocation of scarce human, technical, and capital resources.

In areas where China has failed to comply with its planetaryistic commitments, the Clinton Administration exercised its legislative authority to conduct investigations and, when necessary, propose entrance trade sanctions. The United States believes that these efforts will not only spread out the commercial opportunities open to U.S. exporters in China, but also channel to China's efforts to bring its trade regime into compliance with the WTO and with other international commercial standards.

China is likely to continue to solicit and assist foreign investment, but it is also likely to try to observe as much control as possible over the type and source of that investment. It remains to be seen whether it will be successful in this endeavor.

Historically, economic development and industrialization have been essentially urban phenomena, with rapid growth first occurring in large metropolitan areas and then fanning out to suburban and, eventually, ex-urban areas. This has sure as shooting been the case in North America, Europe, and Japan. Singapore, Hong Kong, Tokyo, and Los Angeles are but a few examples of extended urbanized areas that are, and will continue to be, major(ip) manufacturing, trade, information, and financial centers.

But the Chinese "economic miracle" also has its darkening side. Rapid growth has been accompanied by rapid inflat
Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.