The economy in China's economy since 1978 has maintained a steady annual rise until
2010 where the World Bank declared the nation as the second-largest economy, coming only
after the United States of America. China's economic growth was an economic miracle and was
brought about by its focus on industrialization, agricultural revolution, and political strength.
Industrialization, to begin with, has been China's most important factor when it comes to
its economic growth. With over 500 products being produced worldwide, china is ranked as one
of the top producers, with over 220 of these products being made in China. With the market
worldwide, China can create different products with their quality varying to produce other
products. The availability of cheap labor for these industries has also been a critical feature. A
recent statistical report shows that there are over 83 million labor workers in china's industries.
With the presence of raw materials locally available, the Chinese enterprises were able to boost
their productions, which increased their exports, hence raising the taxes for the country's
For several decades, the Chinese government had imposed heavy taxes on the agriculture
sector to support urbanization. However, in 1978, reforms were made that eased this taxation.
The government cabbed movement to urban centers due to overpopulation in the urban centers,
and those left in the rural had to venture into agriculture. The introduction of technology to
agriculture heavily boosted agricultural production, providing enough for local consumption and
export, increasing the taxes for the economy's growth. Its geographical positioning favors China
since it is surrounded by countries like Taiwan, Japan, among others who were among their top
export markets for both their agricultural and manufactured products.
Thirdly, China's growth was positively affected by their political choices. In 1978, the
Chinese government opened its boundaries for foreign investments under several conditions, one
being that foreign companies would share their technology with them. They would produce these
products themselves and later on and would sell them at lower prices in the market. The
government took control of companies like the nation's central bank, where they control the
value of their local currency, yuan, and that of the dollar. They managed the exports' prices,
keeping it a little cheaper than other foreign products and helping them win markets for their
As discussed herewith, china's economy has been booming since its focus on
industrialization and agriculture with aid from their officials' strategic political ideas. In the last
decades, the rate of poverty in China has decreased by over 85%, as recent statistics show; at this
rate, it is only a question of whether China will remain second to the USA in the next decade.
The World Bank development research center of the state council, the people's republic of
china ©2014 Urban China. Towards efficient, inclusive, and sustainable urbanization.
Morrison, Wayne M. China's Economic Rise: History, Trends, Challenges, Implications for
the United States ©2019 Congressional Research Service.
Brandt, Lovren, and Zhang, Yifan. Creative Accounting or Creative destruction? Firm-level
productivity growth in Chinese manufacturing ©2009 National Bureau of Economics
Zheng, Song, and Zilliboti, Fabrizio. Growing like China ©2008 University of Zurich