Chinas Economic Condition Essay Example | Topics and Well Written Essays - 500 words

Chinas Economic Condition - Essay Example Factors that contribute to this are the political system in China as well as the economic system. Market efficiency is achieved when a society is able to put all of its resources to use in order to reach a full level of production. The resources that a society has to employ are labor, land, entrepreneurial ability, and capital (Campbell & Brue, 2004: 24). It has also been noted that market efficiency cannot be obtained unless there is a healthy level of competition present (Clark, 2007:989). China's, known as the People's Republic of China, is lead by the Chinese Communist Party. In a communist system, the government owns most property, resources, and businesses. They make major decisions as to what and how much will be produced. In this type of system, leaders are not elected; they are appointed by the CCP and have emerged from within the ranks of the party (Eui.com, 2008). In this type of system there is belief that all resources should be allocated equally amongst the citizens, however this is most often times is not the case. In 1978 China initiated free market reforms, which was a major change in its economic system (Eui.com, 2008).