The economic reforms introduced by China refers to economics reforms which is called "A Socialism with the characteristics

of Chinese" in People's Republic of China these reforms were started in December 1978 by some reformists who were from within the Communist Party of China (CPC) and they were led by Deng Xiaoping. state and these were carried out in two stages. The first stage, in the late 1970s and early 1980s, involved the decollectivization of agriculture, the opening up of the country to foreign investment, and permission for entrepreneurs to start up businesses. However, most industry remained state-owned. The second stage of reform, in the late 1980s and 1990s, involved the privatization and contracting out of much state-owned industry and the lifting of price controls, protectionist policies, and regulations, althoumonopolies in sectors such as banking and petroleum remained. 197884 Deng's first reforms began in agriculture, a sector long neglected by the Communist Party. By the late 1970s, food supplies and production had become so deficient that government officials were warning that China
Deng responded by decollectivizing agriculture and emphasizing the Household-responsibility system, which divided the land of the People's communes into private plots. Farmers were able to keep the land's output after paying a share to the state. This move increased agricultural production, increased the living standards of hundreds of millions of farmers and stimulated rural industry.

Reforms were also implemented in urban industry to increase productivity. A dual price system was introduced, in which state-owned industries were allowed to sell any production above the plan quota, and commodities were sold at both plan and market prices, allowing citizens to avoid the shortages of the Maoist

era. Private businesses were allowed to operate for the first time since the Communist takeover, and they gradually began to make up a greater percentage of industrial output.

198493
During this period, Deng Xiaoping's policies continued beyond the initial reforms. Controls on private businesses and government intervention continued to decrease, and there was small-scale privatization of state enterprises. A notable development was the decentralization of state control, leaving local provincial leaders to experiment with ways to increase economic growth and privatize the state sector. Township and village enterprises, firms nominally owned by local governments but effectively private, began to gain market share at the expense of the state sector and the private sector surpassed the state sector in share of GDP for the first time in the mid-1990s. China's government slowly expanded recognition of the private economy

19932005 Despite Deng's death in 1997, reforms continued under his handpicked successors, Jiang Zemin and Zhu Rongji, who were ardent reformers. In 1997 and 1998, large-scale privatization occurred, in which all state enterprises, except a few large monopolies, were liquidated and their assets sold to private investors. Between 2001 and 2004, the number of state-owned enterprises decreased by 48 percent. During the same period, Jiang and Zhu also reduced tariffs, trade barriers and regulations, The domestic private sector first exceeded 50% of GDP in 2005 and has further expanded since

2005 to present The conservative Hu-Wen Administration began to reverse some of Deng Xiaoping's reforms in 2005. It increased subsidies and control over the health care sector, halted privatization, and adopted a loose monetary policy, which lead to the formation of a U.S.-style property bubble in which property prices tripled. The privileged state sector was the primary recipient of government investment, which under the new administration, promoted the rise of large "national champions" which could compete with large foreign corporations Economic performance since reforms China's economic growth since the reform has been very rapid, exceeding the East Asian Tigers. Economists estimate China's GDP growth from 1978 to 2005 at 9.5% a year. Since the beginning of Deng Xiaoping's reforms, China's GDP has risen tenfold. For the period 19782005, Chinese GDP per capita increased from 2.7% to

15.7% of US GDP per capita, and from 53.7% to 188.5% of Indian GDP per capita, Per capita incomes grew at 6.6% a year. absolute poverty declined from 41% of the
population to 5% from 1978 to 2001