Since 1980, China's economy has continuously grown. With the government slowly allowing more freedom among businesses, China is beginning to break away from its communist roots and develop capitalist methods. The government is allowing small businesses to expand and is decreasing taxes on the lower class, allowing a larger middle class to develop. Allowing a larger middle class to develop will lower the unemployment and the homelessness rate. Increasing productivity of goods and increased trade will increase its economy and allow China to become a strong competitor in world trade. China is a large country with great potential as it is becoming modernized. China's fast growth and adoption of capitalist methods will lead the country to become a stronger economic power.
China's adoption of capitalist methods has greatly strengthened its economy. Twenty-five million new companies, mostly small, have sprung up in China in the past decade. The Tokyo Candle Inc.,
for example, established in 1918, revived its successful business by relocating all its production lines to China and only retaining its sale and service sectors in Japan. Many of these small businesses are becoming larger and expanding. The Global Sources Corp., a big-name provider of international trade information, entered the China market in 1992 and has received a marked increase in orders for Chinese products during the past two years. Agriculture, an important factor in the rising economy, is being monitored less by the government by being less strict on the limitations of sales. Government control on all sales has decreased, which allows more competition. More competition means companies fighting for sales.
China has planned rearranging its taxing system, which will help boost its economy. It is lessening taxes on the lower classes to create a larger middle class. Farm taxes will especially be reduced because of the 800 million...