Should China be promoting big business groups Pick several groups to Essay

Should China be promoting big business groups Pick several groups to show why or why not, using contrasts, in the context of th - Essay Example   Smyth et al.,  2004). Within the sector of state-owned enterprises (SOEs) the development of  large scale enterprises has been progressing  (Nolan,  2001; Nolan, 2002). The policy makers in the country and the organizational leaders have made immense endeavour to nurture large  enterprise  groups. These leaders have aspired to upgrade these groups and transform  them  into  internationally  competitive  transnational  corporations (Sutherland, 2007). Such unorthodox development bore fruit and led to the outstanding growth for the country (Nolan, 2001). The China miracle: an overview China has exhibited significant growth for the last three decades, which has attracted attention of the developed countries. The tempo at which the country has transformed itself from being a peasant society to an industrial powerhouse, guarantees that the country has the potential to achieve a growth rate of several times greater than the current rate. If things continue in th is pattern, China might surpass the present advanced countries of the western world (Krugman, 1994). Economic development had been initiated in China around 30 years before and the outcome is miraculous. The GDP growth rate in China on average has reached 9.8 percent in 2010 (Lin, 2010). It has surpassed the rate foreseen by analysts in 1980s and 1980s. These reforms had been initiated by Deng Xiaoping with the goal of increasing the GDP of the Chinese economy by four times within a span of twenty years. The vision with which Xiaoping had launched this reform was to achieve a 7.2 percent annual growth rate for the economy. Since 1979, China’s economic performance has improved at a massive rate. In 1979 the country’s â€Å"trade as a percentage of GDP was only 9.5 percent† (Lin, 2010), while by 2010, China has reserved for itself the position of the highest exporting country in the world and the third largest country in terms of imports. At present the countryâ⠂¬â„¢s trade contributes approximately 70 percent of the country’s GDP. In this span of 30 years, 600 million Chinese residents have been brought out of poverty through this dazzling economic growth (Lin, 2010). The development path followed by China after the reforms of 1979 has been devised by the policy makers keeping in mind the real scenario of the country. It has therefore been possible to implement these policies successfully. While some contemporary economies had tried to bring radical changes or treat the economy with shock therapy, the effects of these changes have not been holistically beneficial for these economies. China has therefore been able to take exceptionally huge strides of performance and has moved ahead of most other developing nations of the world. This rapid growth experienced by the Chinese economy for thirty years at a stretch and the consequent sustainable improvement in the standard of living of its population of 1.3 billion has been termed by res earchers and observers as â€Å"the China Miracle† (Liming, n.d.). By avoiding radical reforms and by following a step by step process of transformation the economy has been able to bypass the negative impacts of change and avoid striking social unrest within the country. The process of China’s transition China has primarily been an agrarian society. With industrial revolution the economy faced a speedy movement away from the traditional agricultural society in which almost 85