Question

Explain the various economic policies adopted by China that led to the rise of its economy.

Hint:

List four reforms: open door policy, privatisation (1982 and 1998), special economic zones and market reforms.

Answer 1

Step 1: Starting point:
China began economic reforms in 1978 under Deng Xiaoping, who gave up the earlier closed, state-led system.
Four main policies raised its economy.

Step 2: Policy 1: Open door policy:
China opened itself to foreign capital and technology and encouraged trade with the world.

Step 3: Policy 2: Privatisation:
Farming was privatised in 1982 and industry in 1998, so output rose.

Step 4: Policy 3: Special Economic Zones:
Trade barriers were removed only in special zones, which were set up to attract foreign investment and boost exports.

Step 5: Policy 4: Market with state control:
China moved to a market economy but the Communist Party kept political control.
Private firms and foreign companies grew and this brought high growth.

Final Answer:
China rose economically through the 1978 reforms: open door policy, privatisation of agriculture and industry, and Special Economic Zones.