Evolution of China’s economic development model

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Political, social and economic development of China
1Drobotiuk, O
1Ph.D. in Economics, Kyiv National Economic University named after Vadym Hetman Institute for Contemporary China Studies named after Borys Kurts 03057, Kyiv, 54/1 Peremohy prospect khomenko@kneu.edu.ua
Kitaêznavčì doslìdžennâ 2019, 1:76-93
https://doi.org/10.15407/chinesest2019.01.076
Section: Political, social and economic development of China
Language: English
Abstract: 

This year, the People’s Republic of China celebrates its seventieth anniversary. During this period, China has gained a foothold in the global geopolitical and geo-economic arena as a powerful and balanced player that has long-term goals and takes systematic tactical steps to achieve them. The rapid impetus to high economic and social results became possible due to structural reforms initiated forty years ago.
The paper presents a retrospective analysis of the transformation of China’s economic model from 1949 to 2019, which identifies three evolutionary stages: the era of accelerated industrialization and the construction of socialism, market transformation and the construction of socialism with Chinese characteristics, innovation-driven economy and the construction of socialism with Chinese characteristics in the new era. The first stage is characterized by a significant economic recovery, growth of per capita income, and the creation of the industrial base for China’s further development. However, the growth of the economy has been cyclical because of the economic experiments, wars, and partial isolation from the world. During the second phase, the Chinese government has introduced a number of systemic reforms aimed at developing an open economy, stimulating purchasing power, developing small and medium-sized businesses, creating special economic zones, increasing the innovative competitiveness of companies and regions, increasing investment attractiveness and the like. The third stage is building socialism with Chinese characteristics in the new era: the increase of the openness of the PRC, human-centrism and the construction of middle-class society, the elimination of poverty in rural areas, environmental protection, the formation of a world-class army and an innovative nation.
 
Keywords: China, Chinese Dream, Deng Xiaoping, economic model, economic reform, Mao Zedong, Socialism with Chinese characteristics, Xi Jinping

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