Question

The changes in China's economy since the 1990s have resulted in A) China's shift to greater market economy reforms. B) China's isolation from the international economy. C) China's increased reliance on their command economy. D) China's economic stagnation and lack of productivity.

Answer 1

a) china's shift to greater market economy.

Answer 2

The correct answer is A.

China experienced deep economic reforms in the 1990s,that were part of the transition from a socialist state to a large market economy. The reforms included the privatization of industries that were previously owned by the state, the removal of price controls and protectionist measures and in general, of many economic regulations. Certain state-run monopolies were maintained such as those in the oil and banking sectors. The private sector experienced very remarkable growth levels, and in 2005 already represented the 70% of the Chinese GDP (Gross Domestic Product).