China is a communist state inspired by the Soviet Union and led by Mao Zedong after World War II . Agricultural production was forcibly collectivized, but could not provide enough food for the growing population. Industry was also nationalized, but failed to achieve the planned growth.
When the economy stagnated, Mao attempted the so-called Great Leap Forward,but instead of growing the economy, it caused famine and killed millions. Mao also sought a cultural revolution to break away from the old culture. As a result, many Chinese monuments were destroyed and traditional values were uprooted.
After Mao\’s death, China\’s economy improved and many reforms took place, and China declared the idea of a “socialist market economy”which included.A program of “four modernizations” was established, covering agriculture, industry, military, and science and technology.
A significant eventwas China\’s accession to the WTO in 2001,where China sought access to world markets and sought to abolish tariffs and quotas on Chinese exports. However, the WTO sets certain conditions:
– opening virtually all sectors of the economy to foreign capital (in the past, some sectors were off-limits to foreigners)
– putting the private sector on equal footing with the state sector
– protecting intellectual property rights [23 Allowing foreign companies to build their own distribution networks
– Significantly lowering tariffs
The major advantages for China are: a large supply of cheap labor and an economy that is very open to the world in terms of trade and foreign direct investment. It has a large supply of cheap labor and an economy that is very open to the world in terms of trade and foreign direct investment. Another advantage is the strong propensity to save and accumulate. The disadvantage is the large gap between the rich and the poor, with 120 million people living below the poverty line. Another drag is the low management efficiency of large state-owned enterprises, especially as they absorb much of the banks\’ credit, squeezing private investment. High production has also significantly increased the environmental burden, and smog conditions in the capital, Beijing, are very serious.
Countries with which China trades the most:
– United States
– EU
– Hong Kong
– Japan
– Korea
.