Chinas economy - development and globalisation

Chinas economy

In 1978, the Chinese leadership began moving from a centrally planned economy to a more market-orientated system. Led by Maos successor, Deng Xiaoping, the Chinese sought to bring to an end relative economic isolation of the other countries encouraging Foreign investment that would lead to huge increases in exports, that had been the case in other east asian countries.

Initially there were strict communist control of the way the indsutries operated, but gradually this was relaxed. The decision-making powers of local officials and plant managers were increased and the governemnt permitted a wide variety of small scale enterprises in services and light manufacturing. agricultural output doubled in the 1980s as farmers were encouraged to make aprofit themselves.

special economic zones (SEZs) were established,where foreign companies were encouraged to set up manufacturing plants in return for preferable tax rates. the governement designated 14 coastal cities as open cities, offering incentives for foreign companies to invest. The SEZs were initally concentrated on the coast facing Taiwan and the Pacific, particularly in the area arounf Hong…