The evolution of China’s modern economy and its implications on future growth

ABSTRACT

China has consolidated its position in the world as the second largest economy. Four decades ago, China was one of the poorest economies prior to economic reforms. Yet, China’s reforms are unique as they were implemented gradually and experimental in nature, which contrasted the reforms in other transitioning economies. Understanding these directions can provide a deeper understanding for the future of China’s growth. This paper provides a critical review of the reforms, highlighting the importance of the agricultural and non-state sector during initial reforms. Furthermore, the review discusses the substandard performance of the state sector despite various reforms, prior to the implementation of widespread reforms to open its economy. Finally, China’s sources of economic growth are discussed, and future policy implications are offered to direct China into an economically sustainable growth path.

KEYWORDS:

• China
• economic reform
• economic growth
• economic development

Acknowledgments

The author acknowledges the direction of the handling editor and the suggestions provided by the anonymous referees.

Disclosure statement

No potential conflict of interest was reported by the author. The usual disclaimer applies.

Additional information

Funding

The author has received no funding for this work.