China's Economy

6 Pages 1540 Words

(Yu, 1999, p. 2) As testimony of this, China’s gross domestic product has risen to seventh in the world, and its economy has grown at over nine percent over the last 20 years, the best growth performance in the world.

There were four key turning points in economic policymaking from 1978 to 2002. The first was in 1978 when the Chinese Communist Party (CCP) agreed to a deregulation of the agricultural sector. The second was in 1984 when the CCP extended the contract responsibility system from the agricultural sector to the industrial sector. The third was in 1988, which marked a transition in the economic policy making leadership from plan-oriented conservatives to market-oriented reformers. The fourth turning point was in 1992, after the implosion of the Soviet Union, when Deng Xiaoping transformed China with the support of the provinces to „a socialist market economy with Chinese characteristics“. (Fukasaku, 1999, p. 8), (Lardy, 1998)
III. The political impact on the economy

Within the CCP exist two competing political camps, the conservative reformers and the liberal reformers, which have vast...