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After the founding of the People's Republic of China, through extensive economic constructions, China has already become one of the most potential for the economic big power. On the whole, the people have reached a well-off standard of living. During these years, although Chinese economy has experienced a difficult and long process, it finally obtains great achievements.

 

From the year of 1949 to the year of 1952 was the national economic recovery period. In the early period after the founding of New China, under the leadership of Chinese Communist Party, all the people were devoted themselves to recover and develop the economy with the support of the governments at all levels. Their efforts mainly focused on stabilizing the market prices, exchanging goods between the city and the countryside, readjusting industry and commerce, etc. This period established the economic system of coexistence of various economic compositions with the state operated economy as the leader. After three years' painstaking efforts, the Chinese national economy stepped on the normal path.

 

After that, Chinese Government carried out the first 5-year economy plan from the year of 1952 to the year of 1957. During this period of time, the Central Party Committee attached great importance to the establishment and development of the state and the first large-scale construction was raised in height nationwide. Along with the building of main large-scale constructions, the regional economy fully tapped the potential to extend, to rebuild a group of small and medium-sized enterprises. As a result, China lost no time to complete the socialist transformation of agriculture, handicraft industry and capitalist industry and commerce, thus completing the first 5-year plan ahead of time and raising the standard of people's living.

 

From the year of 1958 to the year of 1965, Chinese Government carried out the second 5-year economy plan and the national economy has been regulated at that times. In the late 50s, the development of Chinese economy didn't avoid detours. In 1985, with the influences of "Left" errors, some development plans beyond the ability of manpower, material resources, and financial resources were put forward. In succession, all the people were aroused to steel making and to build up people's commune in the suburb areas, which resulted in the rapid rise of investment in the fixed assets and the acute shortage of market supplies, such as the energy, the raw materials and transportations. This difficult period lasting for about three years caused the proportional relationship of national economy losing balance and brought about a big swing in the economy. The human factor with the addition of three years' natural disasters made the production of industry and agriculture damaged, markets for goods strained, prices inflated and people's living difficult.     In 1961, based on the principles of "adjustment, consolidation, supplementation and standard rising", the capital construction has been curtailed, the agricultural production boosted and people's living improved. Till the year of 1965, the adjustment of economy has successfully been completed and the economy stepped on the road of rapid development.

 

During the next ten years' time, China experienced the Cultural Revolution, which seriously damaged the economy construction. Production in many factories stopped, Supply of products tensioned and people's living declined. The cadres at all levels together with the people made no efforts to reduce the damage to the least; therefore, the economy has still been developed.

 

From 1977 to 1998, China implemented the open and reform policy. The ten years' turmoil ended in 1976. During the nest two years, the national economy gained recovery and development. In 1978, the Third Plenary Session of the Eleventh Central Committee of the Communist Party of China was held. From then on, China entered into a new historical period. The whole Party re-established the ideological line of emancipating the mind and seeking truth from facts. The core of country economy work was transferred and China began to make economic development as the central task. During this period, the principles of "adjustment, consolidation, supplementation and standard rising" have been strictly enforced; thus eliminating the massive troubles resulted from the turmoil years. Adhering to the principle of best economic benefit, adjusting the proportional relationship among agriculture, light industry and heavy industry, largely developing the production of consumer goods, and solving the problems of people's living step-by-step, etc, make the economy retain its famed dynamism.

 

In 2008, China launched its economic stimulus plan to specifically deal with the Global financial crisis of 2008-2009. Primarily, it has focused on increasing affordable housing, easing credit restrictions for mortgage, lower taxes such as those on real estate sales and commodities, pumping more public investment into infrastructure development, such as the rail network, roads and ports.

 

Since the founding of the People's Republic of China, pushed by the establishment of socialism construction and the policy of open and reform, the national economy obtained substantial development. Particularly in recent decades, it kept growing vigorously and got rid of the drastic fluctuations and development with low speed. The level of economic modernization was improved continuously.

 

In industry, industrial categories are relatively complete and a comparatively complete industry system has been built now. Industry takes the predominant role in the economy. The light industry and the heavy industry develop simultaneously. The output of principal industrial products has increased greatly. Non-state-owned industries maintain a fast growth tendency.

 

The rural economy has been fully boosted. Chinese Communist Party and Chinese Government value the development of agriculture and rural areas, thus drawing up a series of plans to develop the rural economy. After the Third Plenary Session of the Eleventh Central Committee of the Communist Party of China, the rural economy system has been altered and the rural economic structures have been adjusted. Accordingly, great changes have taken place in rural economy.

 

Since the founding of New China, foreign economic relation and trade gained recovery and development. After 1987, it entered into a new era. It has been developed quickly. The establishment and implementation of foreign invested projects improved the production and enhanced the economy's potential for further development. Since the reform and the opening up, tourism sprung up exuberantly. China has already become one of the most popular tourism destinations in the world; therefore, tourism provides impetus for the economy.

 

Nowadays, the development of Chinese economy is facing both opportunities and challenges. The trend of economic globalization becomes more dramatic. The emergence of knowledge-based economy, the rapid development of information industry, the broadening of reform and opening up, the strengthening of the international communication, the exploit of the global market all bring opportunities to Chinese economy development. However, the instability of the International Political Economy exerts great passive influences upon the economic development, especially the Global financial crisis.  Since entering the World Trade Organization, the aviation industry, the electronic industry, the automobile industry, etc, are put to the push.