1. CHINA’S MODERN ECONOMIC DEVELOPMENT
2016

2. MAIN IDEA
China’s economy has developed from an weak, command-driven system into the world’s fast growing and second largest system that is now shaped by an increasing market-oriented approach.

3. KEY ELEMENTS OF CHINA’S ECONOMIC TRANSFORMATION
Gradual introduction of market-based reforms
Opening the nation to external investment
Allowing for private domestic investment
Lessening state control of agriculture
Selling off failing state-run enterprises
Integration with the global economy

6. HISTORICAL: COMMAND CONTROL 1949-80
Government made all the basic economic decisions
Communist government sought to eliminate capitalism
Sought to industrialize and improve agricultural sector by using “Soviet-style plans”
Mao’s personal dictates dominated economic programs

7. HISTORICAL: COMMAND CONTROL 1949-80
With one exception the Chinese economy grew at a slow rate leaving most people in poverty and tied to the land.

8. PERIOD OF REFORM
The death of Mao (1976) allowed for reforms under the leadership of Deng Xiaoping
Agricultural reforms started with the slow dismantling of the commune system
Management of industry slowly shifted to a profit and merit-based model
Focus on light-industry consumer goods
Creation of special-enterprise zones

9. INCREASE AGRICULTURE

10. INCUBATORS OF CAPITALISM

11. PERIOD OF REFORM
Results of the reforms in the 1980s were so impressive that the government sought greater private development

12. Reforms 1990-2000 Creation of a socialist market economy
Development of 2,000 special economic zones
Continued to encourage foreign investment, often in exchange for infrastructure development

13. FOREIGN INVESTMENT

14. 2000-Present Began to address economic in-balance
Major reform was the protection of private property
Continued to dominate export market
Shifting economy away from its narrow focus
Tackling corruption

15. Changing role of government
As a whole the government plays a much lesser role than it did 30 years ago.
On the production side the government (particularly in heavy industry) continues to manage from a top-down model.
In regards to consumer spending market forces answer the basic questions
In short, the Chinese government is attempting to do what no communist government has done: mix a high level of market forces with a command economy

16. TRADE ISSUES BETWEEN CHINA AND UNITED STATES
Government subsides (dumping) and barriers
Trade deficit
Under-valued currency
Piracy and copyrights
Debt-level