The successful outcome of initial decollectivization in Chinese agriculture during the few years since 1978 encouraged further economic reform in urban, industrial sectors of the Chinese economy. Foreign Investment Zones established by the open-door p...
The successful outcome of initial decollectivization in Chinese agriculture during the few years since 1978 encouraged further economic reform in urban, industrial sectors of the Chinese economy. Foreign Investment Zones established by the open-door policy managed to attract a fast flow of foreign investment initially from Hong Kong and from Taiwan, U.S., Japan and others. This foreign component together with the private component in the Chinese economy, though relatively small yet in size, played a major role in the explosive economic growth during 1980's and on.
As the Chinese proclaims a 'socialist market economy' based on public ownership the major task of the Chinese economic reform is however in the area of nationally-owned and collectively-owned industries. The reform is yet to be continued, though various experiment of reform measures has been going on in this saggy area since the mid-eighties.
The Chinese economic growth by way of socialist market system, never tried and completed in history yet, will be quite a challenging task where the Chinese should invent their own developmental model for themselves. The Chinese developmental trail
a head however will also be one which leaves no people around the world unaffected in one way or another,