China's Economic Growth

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China’s Successful Economic Growth

China may share some economic growth patterns with Japan, Korea, and Taiwan due to cultural similarities, geographic location, similar economic development strategies, or, in the case of Japan, relatively large size of the domestic economy. China’s economic growth is expanding at a great pace, while other countries may be at a standstill. China has been the world's fastest-growing economy. One of the main stimuli twelve years ago was the release of Hong Kong to China from Great Britain. The second largest stimulus was the opening of free trade with other countries, in which China was originally a closed trade country. Foreign trade and investment have played a crucial role in the growth of the Chinese economy. Its foreign trade currently ranks 11th in the world economy. The third stimulus package was their drastic position in population control with their one child per family and improved methods to feed their population. There has been a trend from a command economy system towards a market economy system. The market-oriented reforms China has implemented over the past two decades have unleashed individual initiative and entrepreneurship. In 1978, China had no foreign investment and very little trade. Contrast that with the present, where China has been the largest recipient of direct foreign investment in the developing world since 1992 and is among the top ten trading countries in the world. Although the reforms that opened China to international markets were gradual, by the mid1990s foreign invested enterprises began to gain a serious market share. Coca Cola and Pepsi had basically taken over the entire soft drink market in China, and the presence of others like Procter & Gamble and Volkswagen was everywhere with products and advertising. The economy of the People's Republic of China is the third largest in the world, after the United States and Japan and is attempting to overtake Japan as the second largest economy....
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