Introduction to Chinese Culture Research Paper Example | Topics and Well Written Essays - 1500 words

Introduction to Chinese Culture - Research Paper Example Guthrie attributes China’s economic development to three key policies that have been monumental in ensuring China engages in the global economy through both internal and external operations as explained in the exposition of the policies in the proceeding sections of the paper. According to Guthrie, the export-oriented coastal development strategy enabled China became the third largest trading economy in 2004 with trade totals of $ 1.16 trillion (Guthrie, 2009). The policy also has been monumental in allowing for increased foreign direct investment (FDI) and liberalization of the internal markets allowing for access to new technology and understanding of management practices from developed countries. The creation of an export strategy was done by making the construction of new national and international institutions The Chinese government created special economic zones including Pudong, Zhongguancun, and Shenzhen allowing both international and domestic firms to access tax incentives among other benefits for specific types of investment in China. The special economic zones were established in 1980 in Fujian, and Guangdong provinces allowing for augmented FDI and expand foreign trade under the leadership of Zhao Ziyang (Guthrie, 2009). The coastal development strategy allowed for autonomy in the export trade by the coastal regions areas including Fujian, Guangdong, Guanxi, Hainan, Hebei, Jiangsu, Liaoning, Shandong, Beijing, and Shanghai. The policy also allowed China to solve unemployment of rural surplus labor and provided income for industrial enterprises. The success of the coastal development strategy is evidenced by the growth of China’s export economy by 27% between 1988 and 2005 with 26% growth in imported goods.