Chine a fast growing country

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  • Publié le : 31 mars 2011
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1. Introduction
2. A brief summary of the economic reforms that China implemented to integrate in the global economy and the world trade.
3. China's activities in the global market: a major export country
4. China's export economy in the recent context of crisis.
5. Conclusion

1. Introduction
The economy of Chinais particularly interesting to look at, because China was still over the two decades ago a very poor country, whose planned economy didn't allow any improvement for its citizens' standards of living. But after a series of reforms oriented towards the market and initiated by Deng Xiaoping in 1978, China has become one of the greatest examples of economic successes after World War II.
Its economicgrowth has reached an average 10% per year since then, and the considerable growth of chinese exportations in the global market is the most spectacular illustration of China's economic success these recent years. China is a major demographic power, with 1.3 billion inhabitants, and the second largest economy in the world in terms of GDP (US $ 5,302 billion in 2010) 1 . Even if the country isfacing the global economic slowdown due to the aftermath of the financial crisis, its GDP grew 10,3% in 2010 2
Since the middle of the 1980s, China has liberalized its policies related to trade and foreign investments. Its economy is now almost as open as most of WTO's countries. The country entered this organization on December 11th 2001, after a long negotiation process, which marked the outcome ofits opening strategy on the world market. Thanks to both increase in the Foreign Direct Investment (FDI) and the growing China's participation in international trade, the country has known an outstanding economic development. So much so that China no longer belongs to the group of low-income developing countries in the world and, since the end of the 1970s, some 400 million people have beenlifted out of poverty, according to the International Monetary Fund (IMF).
We will study here the economic reforms that China performed to make this possible, then we will examine China's export activities in the world trade and the reason why it has become a major export country, and finally we will look at the stakes this country is facing in the crisis context.
2. A brief summary of the economicreforms that China implemented to integrate in the global economy and the world trade.
As we've seen in the introduction, China's economic growth has been outstanding for more than two decades now, thanks to the efforts its governments have made to gradually open the country to the world market and to participate in the world trade. China has indeed processed to three very important steps inimplementing its economic reforms. The country has decided to shift from a centrally-planned to a market-oriented economy, from an agricultural to a manufacturing and services economy, and from a foreign trade close to open economy.
Since the state had always decided strategic development policies and was present everywhere in the economy and in Chinese citizen's social lives, it made it easier toimplement this "revolutionary" reform in a quick and disciplined way. The first very important reform took place in the late 1970s, when Den Xiaoping took the power in China. Before that, farms had been collectivized, communist leader Mao Zedong had decided to turn China into an industrial giant, and the production was planned by the state. All of that had left the country impoverished and totallyisolated, China being closed to global trade.
When Deng Xiaoping took over, he decided a quasi-privatization of communal farms and produced private incentives to boost productivity and GDP. Then he allowed rural household to invest their money in local manufacturing and transports, and businesses. Deng also encouraged foreign trade and investment through joint ventures, launching an opening...