Question

chinese traditional economy was outwardly oriented and actively engaged in trade

Answer 1

Chinese economy is agrarian in nature from its initial period. Sharp increase in productivity and wages make China to its present form. There is a substantial growth in per capita GDP showed in 1949. Central Committee of the Communist Party in 1978 shift the unsteady economy to a sustained one. Law of Chinese Foreign Equity Joint Venture allows the foreign capital to Chinese economy to boost the regional economies. The globalisation makes China as a larger exporter.

• The average growth rate of real GDP between 1978-2012 was 9.4%. The drive towards modernized economy starts from 1978. Economic reforms focused to develop a socialist market economy. There is decentralised expansion of domestic and foreign trade. China becomes a member of WTO in 2001. Chinese emperor makes the economy into a self sufficient one through high level of foreign trade. In 1950s and 1960s the value of foreign trade was 2 percent of the GDP. Acquisition of foreign plants improves the trade relations of China. In initial period China export their agricultural products for the repayment of imports. There is high level import of modern plants and equipments. Maoist economic development make emergence of worldwide foreign economic relation. This leads the increasing flow of FDI, investment in SEZ, increasing participation in international organisations. The traditional Chinese economy was very vibrant in international trade.