In 1978, after years of state control of all productive assets, the government of China embarked on a major program of economic reform.In an effort to awaken a dormant economic giants, it encouraged the formation of rural enterprises and private businesses,liberalized foreign trade and investment.By nearly all accounts, the strategy has worked spectacularly.Here are eight reasons, why China growing so fast.
#1. An authoritarian government
China government focus on economic growth,some good policy decisions were implemented quickly and efficiently.
#2. Saving rate
China has a high saving rate, which is recycled and concentrates wages paid to workers into four large state banks.This capital has consistently financed more than 85% of China infrastructure investment.
#3.Investment in models
China always focus on investment in models.China created awe-inspiring gateways for visiting foreign investors.
#4.Thoughtful marketing effort
China has sold itself on a single point: the size of its market.Everyone know about China's big market.
#5.China create zones and infrastructure for businesses
China has created many investment zones, export processing zones, free trades zones and good infrastructure.
Much of Chinese who live outside the country are economic forces to reckon with.But they also give back heavily to their country in terms of remittances and investments.
#7.Strong manufacturing base
The shelves of giant store chains like Walmart are testimony to fact that of the low-cost products today are made in China because it offers the cheapest source of manufacturing.Also in electronic and hardware.
#8.Ability to respond quickly
"China is very fast and efficient in the redirection of resources into higher education, economics, computer science, electronic and biotech engineering.China has had a stubborn set of investment policies that opened some doors, shut others.
here is a India vs China GDP graph:
