How do you account for the rise of China as an emergent economic power?

Over the least three decades China made Asia and more generally of the world envious. Indeed, it is the fastest growing economy in the world with and expansion averaging 10% a year. As a result, its GDP in 2006 was around 13 times more important than its level in the early eighties. Thus, today China’s economy is becoming the fourth largest in the world behind the USA, Japan’s and Germany. China is one of the most competitive country in the world in terms of foreign trade. Indeed, it is the world’s third largest exporter and its real exports increased by more than 500 percent over the last 15 years.
Hence, stating figures to draw the importance of the Chinese economy’s growth is one fact, but is not sufficient to help us understanding the underlying reasons that led China’s to become one of the most successful economy.

In the following essay, we will try to answer this question, analyzing the factors that have been forest to account for China’s rapid economic growth and for its competitiveness. First, we shall explain the role of the governments’ reforms and the process of privatization that have highly contributed to China’s boom. Secondly, we will examine the opening of the country and its benefits. Finally, we shall see to what extent China’s export structure has changed.

To understand the reforms launched by the Chinese government, we shall start by outlining some historical factors.

Prior to 1979, China maintained a centralized economy. The economy was controlled by the state which determined the production levels, fixed the prices, and allocated the different resources available according to planification system. Indeed, during the fifties, most of the local industry was state-owned. The fundamental purpose for the Chinese government was to transform China’s economy into a self-sufficient one by hastening an “industrial revolution”. Foreign trade was limited to the