China's Current Economy and Whether It Is a Socialist Country or Not

ACKNOWLEDGEMENT

I would like to thank my supervisor for supporting me throughout my project and giving his valuable suggestions. Finally thanks to all my friends and family for their utmost support and inspiration.

DECLARATION

I, (Your name), would like to declare that all contents included in this dissertation stand for my individual work without any aid, & this dissertation has not been submitted for any examination at academic as well as professional level previously. It also represents my own views & not essentially the ones associated with university.

Signed __________________ Date _________________

TABLE OF CONTENTS

ACKNOWLEDGEMENTii

DECLARATIONiii

CHAPTER 1: INTRODUCTION6

Background of the Research Study6

Aims and Objectives of the Research Study8

Problem Statement8

Rationale of the Research Study9

CHAPTER 2: LITERATURE REVIEW11

Theoretical Framework11

Modern Socialist Country11

Main Factors for Comparison11

Economic Achievements in China12

Pre-Reform Economic Development in China13

Comparing China with the Soviet and East European Socialist Systems14

China's Economic Reform and the Effects on Development15

China as a Major Player in Agriculture Market18

Economical Situation of China in 199018

Industrialization19

Economic Reform in China20

Past Studies on Market Transition in case of China22

Transformation of Class Structure24

Private Enterprises25

Accommodation of Private Enterprises through Internationalization Policy26

Class Analysis27

Ownership Reform Debates29

Criticism on Social Theories30

Debates on Regulatory Issues30

REFERENCES32

APPENDIX34

Table 1.1. Percentage Change of Production from Baseline34

Table 1.2. Sectoral Tariff Rates and the Tariff Equivalents of NTBs to35

Imports before and after China's Accession to the WTO35

Table 1.3 Effects of the Trade Barrier Reductions on37

China's Macroeconomic Indication37

Table 1.4 Percentage Changes in Major Indicators after the Policy Shift38

CHAPTER 1: INTRODUCTION

Background of the Research Study

The research study is mainly based on analyzing current economic state of China as to whether it is a socialist economy or not. The research study will take into account the different economic variables in order to compare the economic situation of China with other countries. However, it has been taken care of that the countries that are taken for the comparison are also considered to be the pure socialist economies. These socialist economies are the United States and the Nordic States. The Nordic States are Norway, Denmark, Sweden, Finland etc. The research study has been taken into account in order to compare the economic perspectives of the United States and the Nordic States with China as to whether they can be considered as a socialist economies or not. Analysing the economic situation of China, it reflects that the country can still be called as a Socialist economy. This perspective can be validate with the fact that the major industries in China are still working under to state ownership that makes it more compatible with the socialist type of economies. The socialist economies are mainly concerned with the state ownership of the organization. The modern socialist economies are mainly concerned with the ownership of the institutions by government agencies. The powerful control of government agencies are the main concern of the socialist type of economies. The theory of Karl Marx is usually called Marxist economic theory and is considered to be very important for any economic system. In his early ages, Karl Marx was more interested in ...