Question

Define Economic Transition (50-80 words). Analyze and discuss the impact of economic transition on China’s economic development. (400 words).

Answer 1

Economic transition

It is an economy which is changing from a planned economy to a open market economy.It includes stabilizing the economy,reducing budget deficits and expanding credit availbility.It allows prices to reflect the supply & demand.Since the collapse of communism in the late 1980's countries of the former soviet unions,and its satelittes states sought to embrace market capitalism and abandon central planning.

Impact of economy transition on China's economy development

Before the trasition the chinese economy was deminated by state-ownership & central planning. from 1950-1973 china's per capita incke increased by the rate of 2.9% per annum.China is the most singular of the transition economies.Since opening up to foreign trade and investment & implementing free market reforms in 1979 china became the largest,fastest growing and heavily enanged in international business.
The counrty is forging ahead with its ambitious attempts to transition from a manufacturing heavy economy model to a sevice-led-one.A number of policies & inicatives are being employed to achieve this feat.from past 20years china economic growth is increased day by day.China's per capita is increased by avereage 10% per annum.

China's real estate sector meanwhile rebounded thus acting as another important driver for growth.For decades china has focused on aggresive expansion of its manufacturing capabilities & ouput.The country subsequently became to known as "The world,s factory" exporting cheaply made goods & components across the world.

China's transition path has a large global economy footprint.As a world's second largest economy in 2016.It has made a consistently large contribution to world GDP.even as the pace of china's expansion slow,it will continue to make large contribution to global growth.The transition affect other economies through trade,commodity & financial channels.

The main effect of china's growth is seen in industrialization,urbanisation & favrourable demographic trends.A range of other factor or things that happen after market trasition or economy trasition is includes followings:-

-entry in WTO(world trade organisation) in 2001.

-A wave of privatisation for many inefficient state owned enterprise in the late 1990's.

-The emergence of private housing market.

this change is taken place becauss of investment growth in manufacturing & infrastructure.

In the end we can say that economic transition made the chinese economy well maintained,insiprirable economy.

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