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: -Since the end of the Maoist period in 1978, China has been transitioning from a state dominated planned socialist economy to a 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: -Special Economic Zones (SEZs) were created in the early 1980s to attract foreign capital by exempting them from taxes and regulations. This experiment was successful and SEZs were expanded to cover the whole Chinese coast.