Modernization of china’s economy: achievements and prospects

Abstract

The article highlights the features of reforming the Chinese economy. It is noted that the process of reforming China’s economy began during the reign of Deng Xiaoping, who proposed a strategy to bring the state to key positions in the world economy. It was during this period that modernization and a policy of «reform and openness» were carried out. A feature of the Chinese economy is the programming of economic development, which has its roots in the middle of the twentieth century. Thirteen five-year socio-economic development plans have now been implemented. Another feature of the Chinese economy is the combination of state planned levers of management with market, ie the dominance of the model of «socialist market economy». Under Hu Jintao and Xi Jinping, they set out to build an innovative economy. However, despite the rapid pace of development of China, the republic still lags behind developed countries. The reason for this lag, according to the state leadership, is low innovation capacity. In recent years, the development of the country’s economy has been negatively affected by the trade war with the United States and the introduction of quarantine measures in connection with the COVID-19 pandemic, which led to the collapse of the Chinese economy by 6,8 %. In addition to an effective domestic policy, the Republic of China is active in foreign trade. The country’s largest trading partners are the United States, Hong Kong, Japan, Korea and the EU. Develops active relations with Latin American countries, India, Pakistan, Brazil, the African continent and the Arab world. China is an attractive country for foreign capital. Most foreign investment comes from China’s economic services sector. To become an attractive country for foreign investment, the Chinese leadership has taken a number of measures to create a favorable investment climate. As a result, China ranks second in the world in terms of nominal GDP. In the near future, China is projected to be ahead of the United States in economic terms and to become the most powerful country in the world.