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Explain three policies or measures the Chinese government has adopted to drive forward the economic reforms in China, according to Doug Guthrie’s China and Globalization, Chapter Four, China in the Global Economy, pg 109-168

Throughout this paper we will explore and examine three factors the Chinese government have adopted. “First, the central government has driven reforms forward through several key policies...” (Guthrie, 2009; page 110) Such policy reforms have allowed China to emerge as one of the largest economies in the world. Secondly, “the government decentralized decision making...”(Guthrie, 2009; page 110). The reductions of decentralized decisions have provided local officials greater flexibility in controlling local development. Lastly I will discuss, how the “government has reformed industrial organizations without privatization” (Guthrie, 2009; page 111). This reform has allowed the private sector to emerge and create new markets. These three factors have helped China change and encourage industrial growth. However such reforms did not occur overnight. I will discuss the early history of the reforms, the transition and the present of the Chinese economy.
China began to reform and implement new policies during the early 1980s. These transformations have allowed China to strategically place them in a position of power. An important transformation including “the creation of special economic zones (e.g. Pudong, Shenzhen, Zhongguancun), which allowed firms (domestic and foreign) to take advantage of specific tax incentives and other types of policy goals in targeting specific kinds of investment in China.” (Guthrie, 2009; page 112) If China did not implement, maintain and forecast the future, the country’s expansion would have been limited within the import/export markets. One of the most critical and important policies implemented is known as the…...

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