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Major political and economic strategies have taken China where it is now. The rise of the Chinese economy has seen various factors that have backed it strongly over the years. For example, the foreign investment has met with huge encouragement from the Chinese government. The government concentrated on industries that would require least investment but produce high output for the economy. This has led to massive job opportunities for the population. Some Facts About The Chinese Economy The Chinese government has been instrumental in getting the economy on board. China had been a poverty stricken country for a long time. The Deng Xiaoping economic reforms in 1979 led to the changes to take place. A rise in the foreign trade with exports as high as $85 billion in1992 declared China to be a major power in international trading. This is a huge rise from $14.8 billion in 1979. Exports of manufactured goods comprise of more than ¾ of China's trade today. This high influx of foreign currency has done miracles for the Chinese economy over the years. With large funds coming into the country from the foreign investors, China saw an influx of $20 billion in 1993 alone, and treaties signed for $100 billion for future investments. Over 37215 enterprises were in business by the end of 1991, all of which were being funded by foreign investors. These enterprises further resulted in around $12 billion worth of exports, which constituted 17% of the total exports China saw at that period. All this proved to be very vital for the rise of the Chinese economy. One of the notable things that China did was follow the examples of the developing economies and the new industrializing countries. While the limited investment industries were prioritized, land was released to farmers at the same time. This resulted in diversified growth in the Chinese economy and huge production capability. The state concentrated on ruling and administration and let the economy to be more flexible. This further encouraged foreign investment. Conclusion Thus, there were mainly three reasons for the rise of the Chinese economy. The government investing in industries that had low monitory requirements and high output resulted in various favorable results like job opportunities, rise in per capita income, and better production. Foreign investment was the second and the most significant factors of all. And with the land given back to the farmers and the government concerning itself mainly with administration, the Chinese economy found the boost it required. China is one of the leaders in world trade. The rise of the Chinese economy has affected not only China but most of the other nations in the world today.
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Mark Patricks is an author, publisher, and businessman. You can read his weekly writings in Freedom by Friday a newsletter published by the League of Power. To learn more about Chinas economy please read God Bless China. While there you grab your free subscription to the League of Power newsletter.
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