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China Economy - Coursework Example

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Growth in GDP- the reason for choosing GDP is because it has grown by a great margin when comparing 1978 and 2010. “In the year 1978, it was US$230 only and in the year 2010 it had grown to US$4000” (Tong & Wong, 2012) this is a very wide margin.
Increasing exports-,…
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China Economy
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China Economy

Download file to see previous pages... The share of China of total accumulated FDI stock in Asia almost tripled within 20 years i.e. from 6% in 1990 – 15% in 2010.
Currency strengthening against the US dollar- the Chinese RMB has continuously appreciated against US dollar from8.27 in 2005 to 6.41 in 2011. The country still continues to run trade surplus as well as accumulating foreign reserves. Its pressure to appreciate the currency still remains strong (Tong & Wong, 2012).
The reason as to why there was no industrial revolution in China is that the brokers as well as tax collectors created a market only for luxurious consumer goods instead of investing in new technologies. “They could use their surplus capital to extend credit at high interest rates or to run pawnshops, but they failed to invest in new technologies that would spur industrial revolution” (133). When Europe built modern infrastructure within Chinese treaty ports, it did not spark industrial revolution since industries were few (Tong & Wong, 2012).
Cultural Revolution was a major drawback since it did cost China economic problems. “Though it resulted to long term economic damage to government administration and factory management as well as the country’s education system” (Tong & Wong, 2012).
4. China adopted an open-ended approach towards its economic reform process because it did not have any books to help them learn the way of un-planning, hence they needed something with no blueprint or detailed plans.
China chose to begin with Agriculture reform step taken by china to start economic reform, which they did through instituting household responsibility system. The reason they chose agriculture was that despite the trial and error reform strategy having work well during the first phases, critical microeconomic measures of reforms failed to lend themselves effectively to the gradualist method through experimentation. Some of these reform measures included taxation, ...Download file to see next pagesRead More
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