China's Economic Growth Due to Recent Foreign Policies Essay

1289 Words Dec 17th, 1999 6 Pages
China's Economic Growth Due to Recent Foreign Policies


Recent Chinese economic policies have shot the country into the world
economy at full speed. As testimony of this, China's gross domestic product has
risen to seventh in the world, and its economy is growing at over nine percent
per year (econ-gen 1). Starting in 1979, the Chinese have implemented numerous
economic and political tactics to open the Chinese marketplace to the rest of
the world. Just a few areas China's government is addressing are agricultural
technology, the medical market, and infrastructures, like telecommunications,
transportation and the construction industry. Chinese reform measures even
anticipated the rush of foreign investment by opening newly
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Funding for these projects come from foreign
investments and appropriations from the Chinese government in the form of grant
financing, and legislative or administrative support.
Yet another example of the Chinese emphasis on industrial based growth
is the far-reaching goal of having just under 100 million telecommunication
lines by the year 2000. China's Central Ministry of Posts and Communication said
that in order to complete this major task China will enlist the aid of major
overseas suppliers and create manufacturing plants within the nation. AT&T,
Motorola, Northern Telecom, Alcatel, Erricsson, NEC, and Siemens are just a
handful of the multinational companies which hold a considerable share of the
Chinese telecom market, once again proving that China is becoming a party to
global interdependence.
The Chinese pharmaceutical market, much like Chinese industrial markets,
is experiencing rapid growth due to reforms in China's economic strategy. The
nation's government has decided to lower import tariffs and remove the necessity
of an import license to bring pharmaceuticals into the country. Also, patented
foreign drugs, such as Tylenol, are now being protected from counterfeiting by
administrative action. The result of these provisions are overseas contractual
investments totaling $1.5 billion in the past five years, and income from the
medical industry's exports reaching 2.6 times the amount five years ago,
according to Zheng Xiaoyu,…

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