China

China

1. 1978- Chinese leadership movement from a centrally planned economy to more market orientated Strict communist control of the way industries were operated, but gradually this relaxed (reform= friendly for trade) Government permitted a wide variety of small scale enterprises in services and light manufacturing Agricultaral output doubled in 1980's as farmers encouraged to make profits for themselves Economic zones were established on the East coast - 14, foreign companies were encouraged to set up manufacturing plants in return for preferable tax

2. Reasons for growth

   • Large amounts of FDI led to growth- early 21st century China received over $50 billion inward investment - $64bn in 2004
   • Average growth of more than 8% a year in GDP
   • Joined WTO in 2001- opened global markets (exports of over $266 bn in 2001 rocketed to $969 bn 2006)
   • Many economists agrre that the the economic growth was the main factor of the world getting out global recession after the American stockmarket fall 200-01
   • 2004- exports rose by 35% to $593bn
     • 2004- Walmart imported $18 bn of goods from China
     • Coca cola- 55% share of Chinas drink market
   • 1/3 of the worlds clothes are from China and a 1/3 of the worlds mobile phones

3. Benefits

   • Low cost imports from China saved US consumers over $600 billion over last decade/ saved manafactures even more
   • Made it easier for people to invest in companies and houses due to increase in income