Question

Explain any four policies adopted by China to accelerate its economic growth.

Hint:

China's economic steps: 1978 Open Door Policy (Deng Xiaoping), 1982 Agriculture Privatisation, SEZs creation, and 2001 WTO accession.

Answer 1

Concept: Beginning in the late 1970s, the Chinese leadership introduced systemic market-oriented economic reforms, moving away from the command economy model toward "Socialism with Chinese Characteristics."

Step 1: Open Door Policy (1978).
In December 1978, Chinese leader Deng Xiaoping announced the 'Open Door Policy'. This policy aimed to generate high productivity by inviting foreign capital, investment, and technology from abroad to modernize Chinese industry.

Step 2: Privatisation of Agriculture (1982) and Industry (1998).
China phased out collective farming and privatized agriculture in 1982, leading to a dramatic increase in agricultural production and rural incomes. Later in 1998, state-owned industrial enterprises were privatized or exposed to market competition.

Step 3: Creation of Special Economic Zones (SEZs).
China established Special Economic Zones (SEZs) along its coastal regions with tax concessions, simplified regulations, and advanced infrastructure. These zones successfully attracted huge foreign direct investment (FDI) and turned China into the manufacturing hub of the world.

Step 4: Accession to the World Trade Organization (WTO) in 2001.
China joined the WTO in 2001, integrating its domestic economy deeply into the global trading system, which allowed Chinese exports seamless access to markets around the globe.