The document summarizes the evolution of China's economy from 1949 to the present. It began with a communist government that instituted a socialist command economy with complete government control over markets and firms. In 1977, China adopted "market socialism" and gradually reduced government control, encouraging private ownership and a move toward a market economy while still controlling heavy industries. By the 2000s, China focused on balanced wealth distribution and social services while experiencing over 10% GDP growth annually, though inequality and environmental damage increased. The government role shifted from total planning to encouraging foreign investment and private sectors while still managing certain industries.

1. From Communism To ‘Social’ Capitalism

2. China: An Introduction Chinese Civil War ended in 1949 Communist Party of China came to power Started out on a socialist path Complete government control on market Adopted ‘Market socialism’ in 1977

3. The Economy of China GDP : $4.33 trillion Industrial Contribution: 48% Focus on government control of markets and firms till 1977 Political ideology shaped economic discourse

4. Chinese Economy: 1949 - 1980 Big Push Strategy: Socialist Heavy Industry Abolition of private ownership Government controlled land and labor Technologically sophisticated, large-scale, capital-intensive plants were setup

5. Chinese Economy: 1980 - 1990 New perspective: Economic policy separated from ideology Focus on raising personal income and consumption Private ownership, enterprises encouraged (SEZ) Move towards are a market economy with government controlling heavy industries

6. Chinese Economy: 1990 - 2000 Move towards a ‘Socialist Market Economy’ Government followed “Grasping the large, letting the small go” philosophy Self-sufficiency in food, double real income per capita, Boom in private sector, encouragement of competition even with state owned enterprises

7. Chinese Economy: 2000 - Now Focus on more balanced wealth distribution and improved education, medical care, and social security Over 10% growth in GDP in 2003, 2004 and 2005 Rising inequality of income – 35% live under $2/day Future problems: ageing population, acute environmental damage due to industries

8. Chinese Economy: Govt. Role Government planned and managed the economy since 1949 Top-down flow of command – 100+ ministries for economic activities Gradual reduction in government role since 1978 reforms FDI has increased, SMEs dominated by private sector

9. Chinese Economy: Problems Systematic problems: corruption, environment issues, underemployment, unemployment Steady increase in inflation rates on an year-on-year basis Shortage of gasoline and diesel fuel Food shortages following February 2008 storms

10. Thank You The Chinese Economy