Since opening to the international market in the year 1979, but chiefly since entering the WTO in year 2001, China's economy grow at rates approximately 10% annually by drawing FDI and encouraging exports. After the financial crisis that started in 2008 and depressed demand in Europe and the United States, China's growth began to slow, and susceptibility in its market came to light. It became clear to many in China that the growth strategy that got China from 1978 to the present was unsustainable and the country needed a fresh strategy to solve the nation's regional inequalities, stimulate domestic consumption, and create increase less vulnerable to global contractions in demand.
Chongqing's increase was the result of a suite of economic and social policies that had been dubbed the "Chongqing Model," a controversial package of reforms that assured public and private sector expansion with reimbursement more justifiably shared by all people. However the model was found by critics suspicious and over reliant on state-owned enterprises and debt- driven investment. When the city's preeminent leader was freely fired following a spectacular murder scandal, the area's new leaders-and really China's new leaders-needed to weigh in on the "Chongqing Model." Would it signal a fresh path to prosperity for post-WTO China?
The Chongqing Model and the Future of China case study solution
PUBLICATION DATE: December 05, 2012 PRODUCT #: 713028-PDF-ENG
This is just an excerpt. This case is about GLOBAL BUSINESS
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