The economy has been a tough battle to fight and always will be a never-ending war for China as well as the rest of the world. China's biggest problem is the high population growth rate and finding enough food to feed everyone. During World War 2 food became scares and the government knew they needed to make some drastic changes for the country's wellbeing and in order to flourish in years to come.
During World War 2 the People's Republic of China was governed in a Soviet style making China a communism country. With the great size of China and all of their resources they had a little role in the world economy. China's boarders where basically close to international market trade giving China no way to flourish. During these rough times the Chinese had little to no food. The Chinese Communist Party gave the people in the country very little since they governed all of the states apparatuses and the legislative.
After World War 2 the government knew that there must be a change in the government system or else the country would continue to disintegrate. In 1978 pragmatists with in the People's Republic of China started a program that was lead by Deng Xiaoping to reform the way the country will operate, called the Socialism with Chinese Characteristics. Some people say that China's new economy system is a mixture of Socialism and Capitalism, but with their new system made China's economy market doors open with lucrative outcome. Now the government encourages rural enterprises and private businesses and using their resources they have in China. The poverty rate decrease from 53 percent in 1981 to 8 percent in 2001.
The great success of China's economic rise is due to domestic demand not exports. China's economy has been rising...