1. Since 1949, China has had a communist government that strictly controls the economy and society, deciding what to produce and at what prices. 2. In recent years, China has begun allowing more free enterprise and private ownership to make the economy stronger, without completely abandoning communism. This has led to economic growth. 3. As a result of economic reforms, China's economy has boomed as factories produce many goods. However, the rapid growth has also caused environmental problems and many Chinese still live in poverty.