Group 8

Changing in China —About Economic Policy

Change of Economic Development

Change of Economic Policy

Reform and Opening-up

1949~1978 Reform and Opening-up 1978~Now

1949~1978 • Public Ownership • Planned Economy • Trade-Closed

The Public Ownership refers to government ownership of any asset, industry, or corporation at any level, national, regional or local. Government-Controlled all Capital

The Planned Economy an economic system in which the government manages the economy. • Inefficient resource distribution • Lack of incentive for innovation • Corruption

Trade-Closed Reduce opportunities for contact with the outside world • Reduce the opportunities for cultural, economic and technological exchange. • Cause international conflict

Result….. • Government-Controlled all Capital • Inefficient resource distribution • Lack of incentive for innovation • Corruption • Reduce the opportunities for cultural, economic and technological exchange. • Cause international conflict

Economic Stagnation

1978 • Reform and Opening-up was carried on.

Change Start

1978~Now • A Variety of Ownership • Market Economy • Trade-Open

A Variety of Ownership refers to a variety of ownership exit together. • Individual-Controlled Capital

The Market Economy a realized social system based on the division of labor in which the prices of goods and services are determined in a free price system set by supply and demand. • Efficient resource distribution • Full of incentive for innovation

Trade-Open Increase opportunities for contact with the outside world • Increase the opportunities for cultural, economic and technological exchange. • Promote international trust

Result…. • Individual-Controlled Capital • Efficient resource distribution • Full of incentive for innovation • Increase the opportunities for cultural, economic and technological exchange. • Promote international trust

Rapid Economic Development

Conclusion Formulating a good economic policy is a critical factor in building economic society. Reform and Opening-up was carried on

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