How Did China's Economy Change Over Time

As China has become an increasingly important part of the global trading system over the past two decades, interest in the country and its international economic policies has increased among international economists who are not China specialists. Over time some countries change how they live and what they do on a day to day basis. China making up most of the Earth’s population has changed drastically over time. They have been through many policies and have changed their economy many times over the years. They have been the largest economy for the last two thousand years with their ups and downs along the way. China has succeeded in evolving their economy by upgrading their technology and bettering their economy for the world’s largest population.

In the late 70’s they were close to running out of food supply and it would have been a repeat of the “disaster of 1959”. Deng Xiaoping turned people’s communes into private lots which increased agricultural production, increased the living standards for many farmers and stimulated rural industry. It was important factor contributing to China’s economic success. In 1984-1993 Deng reopened the Shanghai Stock Market, while the decentralized state control and provincial leaders had to come up with different ways to increase economic growth. After inflation in 1985,1988 and 1992, China slowly became important to the socialist market economy. From 1993 to 2005 they reduced inflation and removed forty-eight percent of the state owned enterprises, despite the death of Deng Xiaoping in 1997. As time went on they adopted a loose monetary policy, which was a U.S style formation, causing property to triple in prices. Agriculture, industry, trade and foreign investment, and government finances played a huge in getting China’s economy to where it is now and it is one of the reasons why they have the world’s largest