5 Reason's for china’s Economic Growth Success:

Introduction:

China, officially the People’s Republic of china, is a country in East Asia. It is the word’s most populous country, with a population of around 1.4 billion in 2019. China has been the fastest-growing economy in the world. Shanghai is the financial centre of china. Since the 1980s China has started to become worlds factory.  The average annual growth rate was 10% from 1978 to 2005, based on government statistics. In past china had a state-dominated planned socialist economy which gradually transformed into a mixed economy. This transformation required a complex number of reforms in china’s fiscal, financial, enterprise, governance and legal systems and the ability for government to be able to flexibly respond to the unintended consequences of these changes. Over then china started to focus on the economy and more on human capital i.e. People. This, in turn, has made china a major commercial partner of different countries such as the United States, Sri Lanka, Pakistan, India, etc. 

 

Reasons:

1.Skilled labour supply:

Skilled labour is that type of labour where your experience becomes your asset and you become asset of your company/business. China is the world’s most populous country due to which there is a plentiful supply of workers which is its assets. China has focused on Vocational training. Vocational means practical, skill-based or technical pieces of training which are given through internships that prepares you in a very short time. 

2. political system:

The political regime of china is non-democratic and authoritarian due to which it has been possible to embrace western-style free market economics while maintaining control over the political system. As the government has controlled all decisions since 1953 china has been following five-year plans which have enabled the government to enact any reforms it feels necessary. The country is now in its 13th five-year plan (2016-2022). The Chinese government work with the business as we already know about the Chinese debt trap. When China started building ports for Sri lanka China ensured that a Chinese company got the contract. Same happened with Pakistan. So basically, china give a loan the other countries and then with the same money that country hires a Chinese firm and on top of that, it pays interest to china.

3. Cluster Development:

Cluster development is the economic development of business clusters. The cluster concept has rapidly attracted attention from governments, consultants, and academics. China has been following the concept of cluster development. It created a special economic zone or clusters where each company could get everything you needed in one area. Infrastructure development has increased due to which the connectivity increased and also the opportunity increased due to which the migration control. They also use the Hukou system to control the migration in their country. They encourage local people to set up local business.

4. Private enterprise:

China has a great wealth of natural resources, having vast reserves of coal, oil and natural gas. These are being used to fuel the industrial development of the country. However, the country is a large importer of oil, gas, coal etc.in world trade due to its large requirement of raw materials to feed its manufacturing industries.

5. Raw materials:

China has a great wealth of natural resources, having vast reserves of coal, oil and natural gas. These are being used to fuel the industrial development of the country. However, the country is a large importer of oil, gas, coal etc.in world trade due to its large requirement of raw materials to feed its manufacturing industries.

Conclusion

These are the five key pillars that are the major contributor to china’s economic and overall development of the country. But though these are only five and there are many such factors that have extensively contributed to it, what we have to do is to learn from it and try to make a way out of it.