ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -While initially founded as a socialist state with a centrally planned economy, it now has a mixed economy, described by its government as “Socialism with Chinese characteristics”. China has enjoyed almost 30 boom years with GDP growing in double-digits, raising 500 million people out of poverty.

Detailed explanation-2: -The coexistence of the planned system and the market system, as well as governmental intervention and regulated policies, constitute China’s mixed economy.

Detailed explanation-3: -Since the introduction of Deng Xiaoping’s economic reforms, China has what economists call a socialist market economy – one in which a dominant state-owned enterprises sector exists in parallel with market capitalism and private ownership.

Detailed explanation-4: -The socialist market economy (SME) is the economic system and model of economic development employed in the People’s Republic of China. The system is a market economy with the predominance of public ownership and state-owned enterprises.

Detailed explanation-5: -Since the end of the Maoist period in 1978, China has been transitioning from a state dominated planned socialist economy to a mixed economy.