The Chinese Economy

Instituting sequential market-oriented macroeconomic reforms and institutional upgrades has turned China into a dynamic market-oriented economy. Altering its economic system from a centrally planned nonmarket economy to a near market economy system had momentous results. With the help of reforms, the manufacturing sector, along with exports and investment, became a significant driver of economic growth. Ironically China liberalized and reformed its economy in an unorthodox manner and was slow to open its trade sector to the outside world. Financial sector reforms and developments also lagged. Growth of the private sector continued to face problems, and state-owned enterprises still have a notable presence. Policy mandarins in China are known not to have paid a great deal of attention to the conventional wisdom from Washington. They believed that China was sui generis and would achieve economic success by following its own idiosyncratic growth path.