After years of state control of all the productive assets, China's government embarked on the main program aimed at economic reform. The efforts made aimed at awakening the economic giant that had been dormant. The program encouraged the formation and enhancement of rural enterprises as well as private businesses, the liberalization of foreign trade and investment. It also involved relaxed state control over some commodity prices as well as investment in industrial production and the education of the labor force. The strategy is reported to have worked effectively and spectacularly in fostering China’s economic growth. The country of China experienced major steps of growth economically after the years of central planning and strict government control of various industries that tended to distort prices and misallocate resources (Kwasi, 2013) .
Research conducted on China’s economic development has pointed to the significant role played by the capital investment in the economic growth. A sizeable portion of China’s growth in the recent decades is associated with the capital investment. The capital investment has made the country to be more productive. The new machinery, more investment in infrastructure and the better technology played a significant part in raising the output. Even with the huge expenditure of capital and the production of goods per unit of capital have remained the same. The introduced reforms increased the economic efficiency through the introduction of profit incentives to the rural collective enterprises that are owned by the local government, but they are under the influence of market principles. The profit incentives were also introduced to family farms as well as small private business and the foreign investors and traders (Knight, 2012) . The program also facilitated the freedom of many enterprises from multiple and constant interventions by the state authorities. The profit incentives influenced the private capital market positively. The factory owners and small producers were eager to increase their profits since they could keep more of them and as such, they devoted most of their firms' revenues to the improvement of the business performance. Recently, China’s productivity performance is on a high level.
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China's economic reforms boosted the productivity of the economy in various ways, especially through the rural sector. The reforms expanded the property rights in the countryside, and they touched off a race that formed small nonagricultural businesses in the rural areas. The de-collectivization and the higher prices for the various agricultural products also resulted in the increased productivity of the family farms as well as the increased efficient use of labor. These forces interacted and caused most workers to move out of the agricultural sector. The effect of these forces rapidly resulted in the growth of village enterprises that has significantly drawn millions of people away from traditional agriculture, and they embraced the high and value-added manufacturing (Cai, 2016) .
The reforms also served to grant enterprise managers high levels of autonomy. This autonomy meant that the managers became freer to set their own production goals and sell some of their products in the private market at competitive prices as well as grant bonuses to the good workers and fire the ineffective ones. They were also free to retain some of the firm's earning and use them for future investments. The program also allowed greater room for there to be private ownership of production and the privately owned businesses created job opportunities as well as developed much-wanted consumer products, and as such, they earned important hard currency through foreign exchange. They also paid their taxes and gave the national economy a new flexibility and resiliency (Yueh, 2013) .
The Chinese national accounting system is different from the systems that are mostly used in western nations. It is therefore difficult to derive and interpret internationally comparable data on the Chinese economy. The figures of the Chinese economic growth vary consequently, and this also contributes to why the growth is perceived not to be genuine.
China might have cheated their way to success by not playing fair on trade. A huge imbalance has existed in China’s trade with various countries such as the United States. It is reported that in the previous year, the United States bought $500 billion worth of goods from China. On the contrary, the United States only sold $165 billion worth of goods and services to the Chinese. Another way that China plays unfairly is said to be the theft of the United States business ideas and secrets as well as the technology. The Chinese are reported to make efforts to copy electronics and software, as well as movies from other developed countries after which they toss them out at cheaper rates. The report from the Commission on the Theft of American Intellectual Property concluded that it is over 2 million jobs that would return to America should China incorporate laws that protect business secrets similar to those of the United States (Wenzhao, 2017) . The Chinese government has also developed a reputation of changing rules on an impulse to favor domestic companies heavily.
The economic growth reported in China over the last three decades is enormous. However, this economic growth is attributed to the Country's cheating in playing unfair trade and engaging in activities such as heavily subsidizing specific industries that are against the rules of the World Trade Organization.
References
Cai, F. (2016). China's Economic Growth Prospects: From Demographic Dividend to Reform Dividend. Cheltenham: Edward Elgar Publishing.
Knight, J. (2012). China's Remarkable Economic Growth. Oxford: Oxford University Press.
Kwasi, A. (2013). Achieving Development Success: Strategies and Lessons from the developing world. Oxford: Oxford University Press.
Wenzhao, T. (2017). The US Policy making process for post Cold war China: the role of US think tanks and diplomacy. Springer: Verlag.
Yueh, L. (2013). China's Growth: the Making of an Economic Superpower. Oxford: Oxford University Press.
