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The factors responsible for the rise of the Chinese economy are as determined below :
1. Major policy decisions in the 1970s: China ended its political and economic isolation with the establishment of relations with the United States in 1972.
2. Four modernisations : In 1973 Premier Zhou Enlai proposed modernisation of agriculture, industry, science and technology and military.
3. Open door policy : By 1978 Deng Xiaoping announced the ‘open door’ policy and economic reforms in China to generate higher productivity by foreign capital investment and technology.
4. Privatisation : The privatisation of agriculture in 1982 was followed by the privatisation of industry in 1998. Trade barriers were removed in Special Economic Zones (SEZs) where foreign investors could set up enterprises.
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