Sample History Paper on The factors that facilitated China’s rapid rise to the world’s second-largest economy

The economy in China’s economy since 1978 has maintained a steady annual rise until 2010 where the World Bank declared the nation as the second-largest economy, coming only after the United States of America. China’s economic growth was an economic miracle and was brought about by its focus on industrialization, agricultural revolution, and political strength.

Industrialization, to begin with, has been China’s most important factor when it comes to its economic growth. With over 500 products being produced worldwide, china is ranked as one of the top producers, with over 220 of these products being made in China. With the market worldwide, China can create different products with their quality varying to produce other products. The availability of cheap labor for these industries has also been a critical feature. A recent statistical report shows that there are over 83 million labor workers in china’s industries. With the presence of raw materials locally available, the Chinese enterprises were able to boost their productions, which increased their exports, hence raising the taxes for the country’s economy.

For several decades, the Chinese government had imposed heavy taxes on the agriculture sector to support urbanization. However, in 1978, reforms were made that eased this taxation. The government cabbed movement to urban centers due to overpopulation in the urban centers, and those left in the rural had to venture into agriculture. The introduction of technology to agriculture heavily boosted agricultural production, providing enough for local consumption and export, increasing the taxes for the economy’s growth. Its geographical positioning favors China since it is surrounded by countries like Taiwan, Japan, among others who were among their top export markets for both their agricultural and manufactured products.

Thirdly, China’s growth was positively affected by their political choices. In 1978, the Chinese government opened its boundaries for foreign investments under several conditions, one being that foreign companies would share their technology with them. They would produce these products themselves and later on and would sell them at lower prices in the market. The government took control of companies like the nation’s central bank, where they control the value of their local currency, yuan, and that of the dollar. They managed the exports’ prices, keeping it a little cheaper than other foreign products and helping them win markets for their exports.

As discussed herewith, china’s economy has been booming since its focus on industrialization and agriculture with aid from their officials’ strategic political ideas. In the last decades, the rate of poverty in China has decreased by over 85%, as recent statistics show; at this rate, it is only a question of whether China will remain second to the USA in the next decade.

 

 

Work cited.

The World Bank development research center of the state council, the people’s republic of china ©2014 Urban China. Towards efficient, inclusive, and sustainable urbanization. Washington DC

Morrison, Wayne M. China’s Economic Rise: History, Trends, Challenges, Implications for the United States ©2019 Congressional Research Service.

Brandt, Lovren, and Zhang, Yifan. Creative Accounting or Creative destruction? Firm-level productivity growth in Chinese manufacturing ©2009 National Bureau of Economics Research

Zheng, Song, and Zilliboti, Fabrizio. Growing like China ©2008 University of Zurich