Sam Tankel, Caroline Brosnan, Dan Lyman, Ruth Hovor, Van Shrestinian China’s Economy Sam Tankel, Caroline Brosnan, Dan Lyman, Ruth Hovor, Van Shrestinian

Agriculture and Industry Chinese agricultural production rose sharply after the reform period of 1978. The commune system was replaced by having large plots of land leased to individual families. China currently has 200 million farm households with .65 ha per farm household. China is currently the largest exporter of inexpensive cotton textiles in the world. The average product life cycle is 10.5 years that is 3.5 times than that of the United States.

Effect of Communism on the Economy Communist concept is of absolute equality among the people and this led the people of China to be equally poor. There is no real competition and the government essentially tells the factories how much to make. Communism does not give the people of China individual property rights.Therefore, individual economic growth is hindered.

Current Importance of Government in the Economy Government has social economic and political councils that manage the national economy. Since 1978 governments role in the economy has been dramatically reduces, but it is regulated by various government run councils. Foreign trade is supervised by the ministry of commerce and the bank of China. The total economic enterprise in China is based upon directive planning.

Recent Effect of Globalization The fastest growing major economy with growth rates at 10% over the past 30 years The largest exporter of good and second largest importer of goods around the world Largest manufacturing economy around the world. They import electrical and other machinery as well as oil and mineral, fuels optical and medical equipment, metal ores, plastics, and organic chemicals all because of globalization and trading with countries.

China’s economy in today’s world economy World’s largest exporter Second largest economy They face numerous economic challenges in the upcoming years. reducing its high domestic savings rate and correspondingly low domestic demands sustaining adequate job growth for tens of millions of migrants and new entrants to the work force reducing corruption and other economic crimes containing environmental damage and social strife related to the economy’s rapid transformation. These problem make China one of the most rapidly aging countries in the world.

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