The Chinese GDP stood at $ 3.42 trillion in the year 2007 (McGregor 2007). Credible experts and institutions expect the Chinese economy to become the world's largest economy by the end of 21st century. However, the development in China exhibits gross income disparities, a trend bolstered by the ensuing liberalization of the domestic markets. Not to mention that an undemocratic political setup has multifarious ramifications those have a direct detrimental impact on the economy. With the fruits of prosperity appropriated by urban centres and politically elite, the human resource development in China has been non-uniform and slow (Plafker 2008). The Western corporations attuned to much liberal and open system do tend to be positive yet apprehensive about venturing into the Chinese climes.
The economic reforms adopted by China in 70s and 80s certainly succeeded in changing the global perception about China. It was only owing to these reforms that the sectors devoid of state interference exhibited a marked growth. The opening up of the Chinese economy definitely made way for foreign investment and trade. However, the momentum of reforms in China though steady has been more or less cautious and slow. Ushering in of the reforms led to a minimal yet conclusive delegation of power and responsibility to the local players (Hexter 2007). ...Show more