In what ways does the present Chinese economy differ from its command economy?
In what ways does the present Chinese economy differ from its command economy?
1 Answers
The present Chinese economy has adopted the ‘open door policy’ to generate higher productivity by investments in capital and technology. It differed from its command economy in the following manner:
1. It broke stagnancy of a command economy.
2. Command economy lagged behind the industrial production but the Chinese economy recovered it by the privatization of agriculture and industry.
3. The present Chinese economy established new trading laws and created Special Economic Zones leading the higher rise in foreign trade. During Command economy the international trade was minimal and per capita income was very low.