China

China's Brief History (after 1949)

Communist Party of China established People's Republic of China in 1949. Communist leaders installed a political and economic order modeled on soviet example. The government carried out successful land reforms and established basic industries necessary for full industrialization and achieved impressive economic and social rehabilitation. Then in 1958 the government broke with Soviet model and started new economic programs that proved disastrous. After that there was a period of political and social anarchy that was unprecedented in communist history which ended in 1976. In 1979 China adopted policy of "reform and opening to outside world" which aimed at modernization. The reform policies also aimed at establishing FDI in China. This has led China to socialist modernization. Reform policies have brought great improvements in standard of living. After that period China has remained firmly committed to economic reform and opening to the outside world.

China's Economy

China's economy has the highest sustained growth rate in the world. It has grown on an average of more than 8 percent since 1978. This has been unprecedented in the history. Even United States achieved its position as world's largest economy by sustained growth of 3% over a period of 100 years. China is now world's fourth largest economy. The combination of size and rapid growth has made China's economy a major driver in global economic change.

It all started in 1978 after the economic reforms. The economy transitioned from a planned one to decentralized and market-based economy. Economies can grow by either increasing the factors of production or by increasing productivity. Before 1978, China had a planned economy and the factors of production were producing much below their capacity. Provinces were set up as self-sustaining units and this lead to redundant investment. There was overinvestment in uncompetitive, capital-intensive industries not suited to China's labor-abundant economy. After 1978, due to economic reforms, productivity started to increase. China also heavily invested in improving its infrastructure. This was then coupled with high rate of investments (investments constitute 40% of the GDP) and gave China a high growth rate that has been sustained for more than two decades.

Government in China

The primary organs of state power are the National People's Congress (NPC), the President, and the State Council. Under the Chinese Constitution, the NPC is the highest organ of state power in China .

The Chinese Communist Party continues to dominate the government and society. In a period of relative liberalization the influence is decreasing particular