China Is Closer to Command or Market Economy?
Over the last several decades, there has been a heated discussion over whether China is closer to command or market economy. Before rendering my opinion, it is more important to take a glance at the arguments on both sides and I believe China is closer to being a modified economy country.
People, who advocate that China is one of the command economy countries in the world, have their sound reasoning. First of all, the most important thing in command economy is that government makes decisions. Government decides what to produce, how goods and service will be produce and who receives how much. Before 1978 there was no private company in China which means all the companies owned by Chinese government. All the Chinese citizens needed to work for the government. At that period, government decided what to produce, how to produce and produce to whom and it didn’t allow any workers to come up with their ideas and suggestions. All the workers needed to finish the tasks which were signed by companies. (Guangming) For example, Tom is a member of Shoe Company and the company gives him a plan which rules he should finish making twenty shoes this month. Actually, the pan is not suitable for Tom because it is possible for Tom to make thirty shoes. At that period, all the workers get the same salary so that workers didn’t want to make better products and completed excess tasks because they could not get excess bonus. (Guangming) The economy condition was terrible at that period because workers lacked of incentives and the government did not coordinate schedules efficiently and the plans were not suitable. To this issue, some other people, arguing that Chinese is market economy, are not standing on a lesser ground. To begin with, Chinese government made a new policy in 1978 called the Reform and Opening-up policy which means every Chinese citizen can open private company and also can choose to work for the governmental companies and they will get
People, who advocate that China is one of the command economy countries in the world, have their sound reasoning. First of all, the most important thing in command economy is that government makes decisions. Government decides what to produce, how goods and service will be produce and who receives how much. Before 1978 there was no private company in China which means all the companies owned by Chinese government. All the Chinese citizens needed to work for the government. At that period, government decided what to produce, how to produce and produce to whom and it didn’t allow any workers to come up with their ideas and suggestions. All the workers needed to finish the tasks which were signed by companies. (Guangming) For example, Tom is a member of Shoe Company and the company gives him a plan which rules he should finish making twenty shoes this month. Actually, the pan is not suitable for Tom because it is possible for Tom to make thirty shoes. At that period, all the workers get the same salary so that workers didn’t want to make better products and completed excess tasks because they could not get excess bonus. (Guangming) The economy condition was terrible at that period because workers lacked of incentives and the government did not coordinate schedules efficiently and the plans were not suitable. To this issue, some other people, arguing that Chinese is market economy, are not standing on a lesser ground. To begin with, Chinese government made a new policy in 1978 called the Reform and Opening-up policy which means every Chinese citizen can open private company and also can choose to work for the governmental companies and they will get