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Three steps taken by China to improve its economy

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steps taken by China to improve its economy

China is presently involved in a massive effort to control its rising energy use while improving the rapid growth of its economy. The numbers included evidence the magnitude of the difficulty: in real terms, China’s 2019 GDP was more than increase that of 2008; the electric power sector added more than 90 GW of capacity in just one year, and 100 million tonnes of coal equivalent energy savings are to be accomplished by engaging nearly 1,000 of the economy’s largest energy-using companies. 

Though the Chinese administration has confirmed its eagerness to learn from international practice, there is completely no pattern for the proposed growth path. The policies and programs that China has introduced are certainly unique given the challenge that is faced, and original plans are being developed to achieve these policies and programs in the country’s economy.

But the actual situation is much more complex and often challenges understanding by international society. China is an economy in transition, both thought, and market-driven, and it is experiencing rapid growth.

Majority state-owned firms that respond well to government reward systems work alongside private enterprises that react more readily to price signals. The economies of some marginal provinces host developed manufacturing facilities and an energetic service sector, while the economies of interior areas remain predominantly agrarian. Evaluations of China’s energy efficiency policies at the national level do not take the variation found across these geographies of energy performance in China.

China’s growing involvement in energy efficiency policies

China’s growing involvement in implementing energy efficiency policies holds lessons for many onlookers. Other economies in transition can learn from the mix of ways that China is growing; even within China itself, one province can learn from the actions of another.

Energy businesses must understand the extent and breadth of energy efficiency programs both to gauge the influence of China’s development on international energy markets and to get this huge potential market for energy-efficient products and services. And yes, those who wish to understand China’s commitment to decreasing the environmental impacts of development should read the many, different geographies of energy efficiency in China.

The reform and open-door policy of China started with the selection of a new economic development plan at the Third Plenary Session of the 11th Central Committee of the Chinese Communist Party (CCPCC) in late 1978. Under the guidance of Deng Xiaoping, who had turned to the political arena after his three early defeats, the Chinese government started to pursue an open-door policy, in which it used a stance to deliver economic growth through the active introduction of foreign capital and technology while keeping its loyalty to socialism.

The explicit aim of this policy shift was to restore its economy and society that were destroyed by the Cultural Revolution. The policy shift also seems to have been prompted by the recognition that the incomes of ordinary Chinese were so low, in contrast with incomes in other Asian economies, that the future of the Chinese state and the communist administration would be in peril unless something was done to increase living rules of its people through economic growth.

Steps taken by China to improve its economy:

  • SEZs were established to help international investors to set up their companies.
  • To help foreign investors to set up their own businesses, special economic zones were set. Agriculture and manufacturing privatization in 1982 and 1998.
  • China’s government guarantees open doors and free plans for property investment and technology from other countries.
  • It intellectualized its sectors of deftness, farming, industry, and technology.