Since the initiation of economic reforms in 1979, China has become one of the world¡¦s fastest-growing economies. From 1979 to 2005 China¡¦s real GDP grew at an average annual rate of 9.6% (Morrison , 2006). Foreign Direct Investment (FDI) was one of the main pillars of reform. With its entry into the World Trade Organization, the opportunities for companies from overseas to invest in China are expect to increase significantly in the coming years. However, this is one of the many images that China currently portrays to attract foreign investment and increase its global influence. This paper intends to shed light on the CCP government¡¦s increasingly short-termist reforms which seem to lack in depth and efficiency. Although the country has made significant progress in liberalisation, the regulatory system and in the battle for reduced corruption, the country has not complied to its WTO commitments. The state has attempted to urbanise at the expense of inefficient reforms for the majority of the population. Furthermore, China is in a stage of transition towards high-tech and tertiary sector business. However, critics say that China lacks the technological sophistication and skilled labour necessary to compete on the world stage.
A shift towards democracy?
Economic reform in China
Economic reform in China since 1979 has drawn the attention of economists, political scientists, policy analysts, and international investors seeking to understand the sources of this success. ¡¥China has generally implemented reforms in a gradualist or piecemeal fashion¡¦ (www.cia.gov, 2006). Essentially, China has already revised their laws and regulations in order to allow foreign direct investment and attract multinational organizations to invest.
Upon reading Pei¡¦s given comments, the underlying issue becomes clear: China has greatly misled its people and investors into believing that the country aspires to become a democracy and naturally, endeavours to... [continues]
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