This paper conducts an evaluation on the China's economic growth in the past 15 years. It also reviews the implications of China's Open-door Policy. The final part of this paper identifies the potentials, problems and future prospects of China's economic growth and suggests the positive directions for China's economic development in coming decades.
China's economic growth has been phenomenal after its Open-door Policy. In 1993, China has nearly achieved its economic targets which set for the end of this century in 1982. However, it is noteworthy that the progress of the Open-door Policy in the last 15 years has not followed a smooth path.
China cumulates the experience of NICS and pursues the "Pacific Asian Model" for its economic development. It is a model where economic reform is prioritized over political freedoms and democracy. China's economic development strategy is to achieve a relatively steady economic growth with tangible economic results on the basis of balanced national growth. Most important, China has effected a change of policy of seclusion to the policy of opening to outside world. Foreign investment, borrowing and foreign trade are the striking features conducing to China's economic growth.
China has become a "market-facilitating" state. However, decentralization has inadvertently given rise to localism and departmentalism. Since early 1990s, China has strived to develop a "socialist market economy". Labour market relations and corruption have increasingly become the serious social issues after liberalization.
China has great potential for future economic development. On the supply side, China possesses adequate minerals and other natural resources necessary for economic growth. Abundant land and manpower play an important role in the process of the China's economic growth. On the demand side, China has a high saving/GNP rate and continuous inflow of foreign investment. Most important, China has a very large population of 1.2 billion people which provides a huge domestic market for China's economic growth.
Ideological obstacles, political instability, inflation, unemployment, inefficiencies of state enterprises and inadequacy of infrastructure are the impediments which would hinder the economic growth in China. The recent political and economic developments suggest that China would have a bright economic prospects in the coming decades.
It is concluded that China has the abilities to create an epochal "Chines Miracle" in the coming decade if the country has: (i) to make further moves to a market-driven economy (ii) to work with other Asian Pacific countries to promote regional economic development; and (iii) to integrate its economy further deeper into global economy.