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The Reemergence of China's Economy

How China reemerged to become the world's second largest economy.

Commentators tend to forget that China had the world's largest economy for centuries before the Industrial Revolution. After falling behind by way of continual political turmoil, China has now reemerged to become a booming economic power.

 

Deng Xiaoping's radical Reform and Opening Up policies unleashed market forces in the late 1970s, transforming a moribund planned economy into a bustling market. State-owned, private sector and foreign enterprises all now contribute to the country’s economic renaissance, but risks remain.

 

Today China has become the world’s second largest economy. Just how did China get here and where is its economy heading next?

Case advisor: 
Li Wei
Case writer: 
Gu Chongqing
Keywords: 
planned economy, market reforms, China