The indomitable Chinese economy : According to the latest surveys that have taken place all around the world, the Chinese economy has been proclaimed to be Asia’s largest economy and the third largest in the world, occupying its place just after Canada and the United States of America. The Chinese economy has shown a steady growth of national income and the net national produc6t at market price that is the main determinant of the national income growth in monetary terms is increasing at an increasing rate. Also the Gross Domestic Product or the GDP has been growing a steady and sustainable rate thus showing a sustained growth in the aggregate real income of the country. The per capital income is well beyond the ordinary rate and hence many economists have predicated the Chinese economy to be a 125 trillion U.S dollar economy by the end of 2040.
The secret strategies that the Government of China had taken in order to achieve this extra ordinary 9.5% GDP growth rate have proved to be very useful in stringent situations. China had set an example for most of the South East Asian countries of first improving its production of primary commodities and then slowly shifting to small scale manufacturing goods production. After becoming adept in this sphere, China slowly winded its way to the production of electronic goods and then into the automobile sector. Recently, after 1985, China had moved into the production of the capital-intensive goods and achieving a self-sustained growth rate.
One of the best strategies that the Chinese government took was to privatize the public sectors. This had created competition among the chief sectors and companies in the economy and the production increased with the rise in profits. This gave the Government the relief of concentrating on the income disparity strategies as China had got freedom from the loss making, good for nothing, public sector enterprises. Another strategy that the government took is to set the pioneering industry policy that made the private individuals to own limited liability companies. In addition, the Government started to intervene in the market and restricted the flow of market forces thus creating inland competition. The strategy of allowing technological inflow and allowing FDI in various sectors had turned the face of economy from the pit hole of failure to the summit of success!
The secret strategies that the Government of China had taken in order to achieve this extra ordinary 9.5% GDP growth rate have proved to be very useful in stringent situations. China had set an example for most of the South East Asian countries of first improving its production of primary commodities and then slowly shifting to small scale manufacturing goods production. After becoming adept in this sphere, China slowly winded its way to the production of electronic goods and then into the automobile sector. Recently, after 1985, China had moved into the production of the capital-intensive goods and achieving a self-sustained growth rate.
One of the best strategies that the Chinese government took was to privatize the public sectors. This had created competition among the chief sectors and companies in the economy and the production increased with the rise in profits. This gave the Government the relief of concentrating on the income disparity strategies as China had got freedom from the loss making, good for nothing, public sector enterprises. Another strategy that the government took is to set the pioneering industry policy that made the private individuals to own limited liability companies. In addition, the Government started to intervene in the market and restricted the flow of market forces thus creating inland competition. The strategy of allowing technological inflow and allowing FDI in various sectors had turned the face of economy from the pit hole of failure to the summit of success!