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Comparative Development Experiences Of India And Its Neighbours

Question

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Explain how reforms were introduced in China after 1978.

Solution

China introduced reforms in 1978 in phases. In the initial phase, reforms were initiated in agriculture, foreign trade, and investment sectors. In the later phase, reforms were initiated in the industrial sector. Private sector firms, in general, and townships and village enterprises in particular, were allowed to produce goods. At this stage, enterprises owned by government were made to face competition.

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