Sample Essay on Introduction


A major reforms’ series started in China at the start of 1978. Most economists call this period the post-reform era. Not just China that is experiencing these changes but the entire world. Major economic sectors were privileged by these reforms including market dynamics, planning, and ownership in the private sector, public facilities, economic market as well as foreign investments consideration. The sectoral reforms’ forms have indeed transformed the economy of China into a country that is less or more dominant (Hart-Landsberg and Burkett, 20).

The first economic reforms’ batch entailed agricultural policies that involved the implementation of the systems of contract responsibility. This benefited some individuals including farmers because they received surplus from subsidiary farming. Nevertheless, townships as well as village enterprises’ establishment followed this. This initiated the foreign policy which the country adopted later. Trade was expanded across the country’s boarder by this policy. It also improved ties in foreign investments (Ross, 30). The main objective of these changes that occurred towards the end of the 1980s in China was to enhance administrative governance in SEOs via increased enterprise’s independence and economic movement from the planned system of the country to a system that is motivated by price. Additionally, more goods’ allocation to the market places was advanced by these reforms. This resulted in the inclusion of virtually all products as of the beginning of the 1990s.

Nevertheless, the main unprofitable SOEs’ closure occurred at the end of the 1990s. The policies of a system for social security were initiated at this time. Majority of these policies were related to finances and they mostly dealt with insolvency and credits’ advancement in financial institutions systems. This caused a political consideration shift from loan issuance and credits to the monetary policies whose basis was purely loss and profit (Rose, 33).

Additionally, because majority of the economic reforms led to significant economic milestones, the reforms of 21st century’s focus was on economic aspects that entailed bridging the gap that exists between the poor and the rich and enhancing productivity efficiency. Therefore, there has been a drastic reduction in non-tariff barriers within the country.  This has progressively removed trade rights that were discriminating. Nevertheless, regardless of how great the achievements made as a result of economic reforms are to this country, there are economic and political challenges that this country is still facing. For instance, there is the declining rate of employment. The challenges that this country is facing will be expanded in this research paper.

Accomplishments by the Chinese since the initialization of economic reforms

The process of reforming the country started in 1978. Due to these changes, the country has had major achievements. The achievements are specifically because of progressive economic policies and reforms that have been adopted in this country. Among the major achievements made by this country include shifting the economy from the initially planned economy of china to a market economy that focuses on emerging markets. This shift occurred from 1978 to 2004. Through this shift, the country has been able to realize a growth rate of about 9.5%. This is higher than the growth rate in other countries in Asia. Additionally, the gross per capita of this country has also increased. This has improved the citizens’ living standards significantly (Hart-Landsberg and Burkett, 17).

Nevertheless, there has been a tremendous growth of trade during this time. There has been a reduction in trade tariffs to 23 percent in 1996 from 56 percent in 1982. They reduced further to 15 percent by 2001. This became lesser than this in 2005 when it reached 9.9 percent. Consequently, further reduction of this value is always anticipated. It shows that the reduction of non-tariffs barrier facilitated the strategies of trade liberalization (Hart-Landsberg and Burkett, 17).

There has also been a significant increase in FTCs’ number since 1986 to approximately 30,000. This led to a major achievement of non-tariff barriers’ stripping off in 2005. This relaxed business entry in this market significantly. The economic policies and reforms’ focus was increased further and this led to the joining of the global trade organization by the Chinese government to enhance opening up of the policy that was favorable to foreign markets. There was continued increase in the strength of foreign capital to 31.3 percent from 2.3 percent from manufactured goods’ sale within a period of ten years from 1990 (Hart-Landesberg and Burkett 18).

Political Challenges in China

There have been successful economic reforms. However, there were setbacks as well that include high unemployment rate, reduced income rates which were caused by income imbalances and environmental pollution. Additionally, increase in population has also facilitated these challenges and this has affected political and social balances in the country.

There has been continued widening of the income gap and this has increased differences among the poor and the rich. It is equally evident that China has continuous personal interests when it comes to wealth creation and business ownership among the top social class. There are high social instabilities’ costs that the poor are experiencing which include high prices of food and healthcare. These have continued to widen the gap. Although a major aspect in the society is to close the gap, the gap has been worsened by economic revolution because suffering continues for the working individuals in the low social class. Manufacturing and industrial activities have important economic benefits for a country. However, it ought to be noted that they are associated with environmental issues. Such issues include excessive raw materials’ exploitation, pollutant gases emission as well as other industrial refuse that affect the environment negatively.

Nevertheless, the major issue whose impacts are felt by the young and skilled people is unemployment. The Chinese human resource docket notes that unemployment rate is high in this country. In 2013 for instance, unemployment rate stood at 41.0 percent. This was determined on the basis of the people who were actively searching for jobs and related to the available labor force in the country. There is an association of such issues with the reforms and they are related to the enhanced political drive for dominating the process of making decisions for major enterprises in order to gain power as well as for personal gains (Hart-Landsberg and Burkett, 29).

Why China is yet to reach Democracy status

Barnett (pp. 1-20) notes that for democracy to be achieved the political system must be fair and economic status of a country balanced. However, China has some people who are among the richest globally while democratic nature of this country has not been realized. The economy has been shifted by technocrats to a state that is purely capitalist with a ruling class that dominates it. Consequently, most state policies in china are moving this country from the socialism state to the capitalistic state. Additionally, China has features that harbor an environment that is convenient for elites to enhance capitalism. Nevertheless, the renewed social policies’ interests have led to an increase in the population that is agitating for a move from capitalism. However, this has not been achieved yet. Undemocratic experiences are among the controlled issues and they are managed by the state through market liberalization of income gap. Most people have poor working places and nepotism practices as well as increasing income gaps that the ruling class introduced indicate the undemocratic status of China.

Assessment of the parts of Deng, Jiang and Hu in Chinese political sphere

Remarkable leaders in politics steered the economic reforms in China between 1978 and 2013. These oversaw all political and economic reforms. Deng played an instrumental role in the implementation of pragmatism reforms as instituted at the end of 1970s (Hart-Landsberg and Burkett, 19). His role included formulating policies and strategies of informative agriculture. Nevertheless, the era of Jiang was noted after he was given the responsibility of supporting the reform agenda for the Chinese economy in 1997. Although his ability was underestimated by protagonists, he was able to consolidate power in order to advance reform agenda even while facing social challenges. He managed to change the dynamism of the global market and the foreign policy. Nevertheless, the belief of most experts is that he failed.

China was ruled by Hu from 2002 to 2012. This ruler thought that the reforms were checked thoroughly. He occupied the position of a communist and a reformist that was ready to close the gap of inequality. Additionally, the ruler delayed the security and foreign policy of this country because he took two years to take control of both institutions.


Works Cited

Asian Development Bank. Key indicators 2007: Inequality in Asia. Manila: Asian Development Bank, 2007.

Provides a focused inequality and social class issues in china and compares the findings with other Asian countries. Moreover the issue and couses on unemployment and is adequately covered as well. This socialism movement in china and the economic reforms consequences are analysed from a political perspective.

Barnett, Clive. Culture and democracy: Media, space and representation. Edinburgh University Press, 2003.

This is a book that talks about culture and democracy. Popular culture and the media are always identified to bear the major blame for the decay of democratic organizations or institutions and the decline of active citizenship.

Hart-Landsberg, M. and P. Burkett.China and socialism: Market reforms and class struggle. New York: Monthly Review Press, 2005, 173, 17-34.

The paper generally focuses on the china economic reforms from 1978 to the 21st century. Moreover, policies that have transformed the Asian country and the approach to political pressures are handled has well.


Ross, A. Fast boat to China: Corporate flight and the consequences of free trade; Lessons from Shanghai. New York: Pantheon Press, 2006, 23-44.

The article addresses the major policies and economic reforms as well. Beyond giving a critical look on the perspectives socialism versus capitalism, it also addresses political developments in China.