Reasons why China`s rapid economic growth

(Sachs Screen 7 . From 20 billion of exports rose to 300 billion in 2003 as its phenomenal industrialization had been based on strong exports , good investment , technology imports and a great deal of domestic labor 7

By allowing the foreign investment , the China 's open-door policy has added power to the economic transformation . Increasing foreign direct investment , which was irrelevant before 1978 , reached nearly around US 100 billion in 1994 yearly inflows increased from less than 1 of was linked to worldwide markets , created jobs , has built factories , and led to important

movement of technology . Strong export increases , in turn , materialize to have fueled growth in terms of production in domestic industries

If consideration is to be given to Marx 's development stages , China would definitely satisfy his requirements . Marx believed that a communist society would eventually surpass capitalism for Communism had its interests only in the working class as a whole , making the working class autonomous from the capitalist (Norman Screen 1

Proving Marx right is the fact that the World Bank estimates that the Chinese economy is currently about 40 percent as large as that of the United States (Krugman Screen 1 . If China can continue to grow at 10 percent annually , by the year 2010 its economy will be a third larger than that of the US 1 . China 's economic development has already emphasized the major position for capital venture in economic growth as a considerable portion of China 's current growth is in fact attributable to large-scale capital investment that has made the country more dynamic (Hu Screen 1 . Although , the capital supply increased by almost 7 a year over 1979-94 , the capital-output proportion has barely been jostled 1

It can be gleaned from Table 1 and Figure 1 that China 's steady growth has...