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    China transformed its economy from socialist to capitalist through a series of economic reforms beginning in the late 1970s. The reforms opened China to foreign trade and investment, transitioning the economy from a command system to a market-based one. The reforms have led to tremendous economic growth, with China's real GDP increasing by an average of 9% annually and hundreds of millions of people being lifted out of poverty. China is now the world's second largest economy and has become a dominant global supplier of manufactured goods.

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    prepared by Piyush Jain from IIPM ahmedabad.

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    PPT on Chinese Economy in ecomonies

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    China transformed its economy from socialist to capitalist through a series of economic reforms beginning in the late 1970s. The reforms opened China to foreign trade and investment, transitioning the economy from a command system to a market-based one. The reforms have led to tremendous economic growth, with China's real GDP increasing by an average of 9% annually and hundreds of millions of people being lifted out of poverty. China is now the world's second largest economy and has become a dominant global supplier of manufactured goods.

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    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    5K views13 pages

    On Chinese Economy in Ecomonies

    Uploaded by

    Piyush_jain004
    China transformed its economy from socialist to capitalist through a series of economic reforms beginning in the late 1970s. The reforms opened China to foreign trade and investment, transitioning the economy from a command system to a market-based one. The reforms have led to tremendous economic growth, with China's real GDP increasing by an average of 9% annually and hundreds of millions of people being lifted out of poverty. China is now the world's second largest economy and has become a dominant global supplier of manufactured goods.

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    of 13

    CHINESE ECONOMY

    Presented by:

    Hitesh Patel
    Jayant Behra
    Nisarg Shah
    Piyush Jain
    Sudhir Patel
    CHINA BACKGROUND

     1949 China transformed into a Socialist Economy by


    Marxist.
     After war with Japan in 1945 many mines and factories
    were destroyed.
     The Soviet troops has dismantled half the industrial area
    & shipped to Soviet Union.
     In 1949 the Communist Government has acquired
    majority of the sectors and remaining 17% in 1952.
    2
     The Communist Government has started implementing
    policies for the development of powerful Communist
    CHINA 1952-1957
     The First Five year plan implemented(1953-57).
     Plan was implemented by adopting the Soviet
    Model.
     Rigid policies and framework implemented for
    the Growth.
     By 1956 67.5% enterprises were state owned
    and remaining 32.5% jointly public-private
    owned.
    3
     Heavy industries i.e. Iron, Steel, Coal, Mine etc
    1970-78
     In early 70’s the radical group Gang of Four attempted to
    dominate the power of the center.
     After the fall of Gang of Four in 1975, new policies were framed
    and encouragement to increase Foreign trade was given.
     Also the exchanges of students and foreign experts with the
    developed countries were to be encourage.
     The economy quickly recovered from the Stagnation period
    between 1976 and 1978 from Cultural revolution.
     Industrial output jumped to 14% in 1977 and increased by 13%
    in 1978. 4

     An Era of Development was laid down by the Communists.


    ECONOMIC REFORMS
     In late 1970 and early 1980 Trade with other
    countries were allowed.
     Economic zones created for attracting the
    Foreign Direct Investment (FDI).
     Privilege to farmers for selling out their surplus
    crop in the open market was allowed.
     Township Village Enterprises (TVE) were
    established.
    5

     Creation of Special Economic Zones


    LATE 1980 AND 1990
     Creating a pricing system and decreasing the role of
    state in resource allocations
     Administratively driven command economy
    transformed to a price driven market economy
     Closing of unprofitable enterprises
     Dealing with insolvency in the banking system.
     Constraints on foreign trade were relaxed, and joint
    ventures with foreign firms were officially
    6

    encouraged as sources of modern technology and


    ECONOMIC REFORMS’
    ACHIEVEMENT
     The real GDP on average grows to 9% a year.
     People below poverty line (BPL) has reduced to
    a large extent.
     Increase in foreign exchange reserves.
     China has became second largest economy
    after USA.
     Between 1996-2000 China cumulatively
    approved 104,621 foreign invested enterprises,
    7

    with a commitments of US 279.984 billion.


    GLOBAL OUTLOOK
     DEMAND GROWTH CONCENTRATED IN ASIA FOR
    NEXT TEN YEARS – ESPECIALLY CHEMICAL GRADES
     CHINA WILL CONTINUE TO GROW AND DOMINATE
    SUPPLY DESPITE HIGHER COSTS
     CHINA INTERNAL DEMAND WILL GROW AT 40
    -50% RATE
     ASIA PRICES WILL BE $300 – 500/MT LOWER THAN
    US AND EU
    8
    COMMUNIST TO CAPITALIST
     China transformed its economy into Capitalist economy by
    opening the doors for the foreign trade.
     Challenges for the Communist to Capitalist!!
    Growth in inequality of Income
    Corruption and Crime
    Inflation
    Unfavorable demographics
    Domestic and international imbalances.
    Financially distressed state-owned and
    state-influenced enterprises.
    9

    A dysfunctional financial system


    RISE IN GDP

    10
    OUTCOMES OF
    TRANSFORMATION

    11
    SLEEPING DRAGON AWAKES
     China has been called as People Bomb due to increase
    in population.
     Growth rate of population estimated at 14mn per year.
     Unemployment is about 20 percent.
     HIV/AIDS is spreading .
     Corruption
     Fear of global pandemic Bird Flu because of worlds
    biggest poultry population.

    12
    13

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