The economic success of China is one of the most highly-disputed issues in the recent years. Many countries want to repeat its success and try to study this matter. You will find the most important factors, which ensure the success of the Chinese market.
Nowadays, China is a real global giant and proven leader in many spheres of human activity. Of course, one of the most significant points is an enormous success in economics. The Chinese market is the strongest in the world, and it does not seem to stop its expansion and development. Therefore, it is not surprising that other countries wish to figure out the reasons why this country is so successful. Many professional economists and marketers made numerous studies and researches in order to define the truth. The outcomes had little difference. In most occasions, there appeared the same factors, which should be discovered in more details.
There are, at least, five major factors that made the Chinese market utterly successful and productive. Firstly, the role of the state in the economy is minimal. The world history knows many examples when the decline in the role of the state in the economy brought huge benefits to the land. The same goes with China. The growth of the economy and average prosperity of the nation are positive. The taxes were reduced, bureaucracy conquered. These steps led to prosperity.
Secondly, one should point out the collaboration with other countries. There are many successful joint ventures with foreigners. The Chinese folk learned the experience of Western countries for many a year. They conduct joint business in all possible directions, and thus, China has received numerous amounts of foreign investments.
Thirdly, the land gains profits from the policy of “Open Doors”. Though many claimed that this was a risky strategy, this proved to be a very reasonable move. There are many “closed-in” countries who try to build all possible borders to stop the infestation of foreigners. China has neglected this policy and welcomes all foreigners, especially those from the USA and Europe. Of course, they count on businessmen with solid sums of money, ambitions, and long-term investment plans. There are almost no restrictions, visa issues, and so on. Undoubtedly, it is impossible to let in all foreigners. Such gigantic countries like China surely have some enemies and rivals. Nevertheless, there is almost no control over their partners.
Fourthly, the Chinese government reduced restrictions on economic activity. Many governments set high fees for the products produced within their borders. There is no sense in setting high payments for own products. They mark that fees simply kill competitiveness. Therefore, you will not find unreasonable fees in China.
Finally, we should mention the cost of production and the paid work. China has the biggest working potential. At the same time, the cost of work is quite low. The production created in China is close to the world brands, but the price is much lower. Consequently, consumers prefer buying cheaper goods.
When summarizing the main factors to the economic success of China, one may come to a simple conclusion – lesser restrictions promote marketing growth. The government of the country minimized its role in economic life of its citizens and encouraged the fast-moving development.
References:
- Zhao, YuKong (2014). What Drives China’s Success? https://www.forbes.com/sites/realspin/2014/10/02/what-drives-chinas-success/#2c1ca5f95852
- John, Ross (2009). No secrets to China’s success. https://www.theguardian.com/commentisfree/2009/aug/18/china-economic-growth
- Wilson, Lee Flores (2010). Why are Chinese entrepreneurs successful? http://www.philstar.com/business-life/551406/why-are-chinese-entrepreneurs-successful
- F. Gerard, Adams (2004). Why Is China So Competitive? http://www.economics.hawaii.edu/research/workingpapers/WP_04-6.pdf
- Ann C., Logue. The Emerging Market in China. http://www.dummies.com/personal-finance/investing/emerging-markets/emerging-markets-and-major-political-systems/
- Anthony, Kuhn (2009). Exploring The Secret Of China’s Economic Success. http://www.npr.org/templates/story/story.php?storyId=113402088
- Huang, Yukon (2010). http://carnegieendowment.org/files/reinterpreting_china_success1.pdf