Hence the people who were a victim of such social conflicts since two generations had a hope to prosper themselves despite of a weak economy caused by high inflation and their distorted homeland and transportation links. Therefore the Soviet example was embraced as a new political and economic model.
Hence in early 1950's a new reconstruction program was taken up in economic and social areas. The new leaders were focused to restore economy, rebuilding war damaged areas and implemented leaderships in women, labors and other mass organizations as well. All this was done and attained through the control of politically loyal government sectors. In 1958, Mao announced a new economic program called "The Great Leap Forward" which was aimed to prosper the economy through industrialization and agricultural productions. Though The Great Leap Forward was not that fruitful the Chinese didn't lose hope and still worked hard to strengthen their agriculture and industry sector (OECD , 2006).
It was in 1979 then when China rehabilitated and opened its economy and adopted more pragmatic approach on political and socioeconomic matters. This economic transformation had a reflective impact not only in China but on the world too. From the last two decades China has implemented market - oriented reforms which resulted not only in the largest reduction of poverty but also attained fasted growth in income levels as well. As a fruit of this hard and headstrong labor China today is the fourth largest economy in the world and has sustained an average economic growth of over 9.5% for the past 26 years. In 2006 its US $ 2.6b trillion economy was about one-fifth the size of the US economy. However by the late 1980s the economy was worked up with increasing rates of inflation. Due to which Austerity Program was introduced by the government of China by the end of 1988 (OECD , 2006).
In early 1990s China's economy regained momentum. Deng Xiaoping a dominant leader of that time, in early 1992, made a series of political pronouncements designed to revitalize the economic reform and hence 'Social Market Economy' was formed. This resulted in a 10 year plan in the political system with bolder reform of the economic system. China is the world's most populous country. It is one of the largest producers and consumers of agricultural products. China is among the largest producers of rice, corn, wheat, soya beans, vegetables, tea and pork. And its major non-food crops include cotton, other fibers and oil seeds. Over 40 % of China's labor is engaged in agriculture though only 10% of the land is suitable for cultivation. Due to which its GDP contributes 13% because of agriculture. According to a survey China's cropland area is only 75% of the US total but still produces 30% more crops and live-stock than the US (Guo, 2006).
Industry and construction comprises of 46% of China's GDP. Iron, steel, coal, aluminum mining, ore processing, machinery, textiles, apparel, cement, petroleum, fertilizers and chemical are foremost industries of China. Consumer's products have a wide range including toys, electronics, foot wear, automobiles and telecommunications. China's strength as an export-platform has contributed to increased incomes and employment. About 40% of GDP is the stases-owned sector. The chief driver of China's rapid economic growth is governed by the exports. For this China has pursued policies such as fostering development of foreign invested factories. Foreign invested factories assemble imported materials (components) into consumer goods for export by