China’s Economy Destiny Hamilton

Type of economy China has a command economy, which means the government answers the three basic economic questions. They decide what should be produced. They run businesses and employs workers. The govt. also decides who receives products.

Economic Growth In the last 25 years there have been an 8% growth in the country’s GDP. The GDP reached 3.2 trillion US Dollars. It has the biggest economy after the US.

Economic Reforms Economic reforms started in the 70s and 80s. The focus of economic reforms was on collectivizing the agricultural activities. In the 1980s, China tried to combine central planning with market-oriented reforms to increase productivity, living standards, and technological quality without exacerbating inflation, unemployment, and budget deficit.