Since China commenced its economic reforms in the year 1978,it's transformed itself from an economically impoverished and politically unstable nation to the 2nd-largest market on the planet. One thing we know about economic growth is the fact that it generally slows down following a period of operation that is strong. It is significantly more difficult to get a state to grow in a quick pace that is sustainably, the per capita GDP is high than when per capita GDP is not high.
Despite more than three decades of reforms, Huang claims, China is still substantially statist in its basic orientation. There's growing evidence that China is finding decreasing returns using its growth model that is present. Research shows that quick increase at an extremely low income amount is not too difficult. Can China prevent the mid-income snare and grow in a sustained rate for another decade or even more? Huang believes it can, but as long as significant reforms, especially political reforms are undertaken by it.
What's Next for the Chinese Economy Case Syudy Solution
At GDP of $700, Huang contends, China did not need to innovate-it could just duplicate and transplant the technology and production systems of other countries. Although it now needs to a more powerful, market-based economic system, a political system that is much more open and democratic, and a legal system that is rule-based and offers powerful IP protection. In other words, Huang says, China desires political reforms as well as economic reforms to enter the next phase of its growth model.
PUBLICATION DATE: July 01, 2014 PRODUCT #: SMR497-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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