The Development of Private Enterprises in China Essay

The Development of Private Enterprises in China - Essay Example By 1980, economic zones were created that was followed by more in the succeeding years by the clear establishment of Special Economic Zones. In terms of trade, it has implemented decentralized trade system, tax refunds and systematic foreign trade (Galbraith, p.9). The shift from the strict implementation of socialist policies to capitalistic ones was achieved primarily through the loosening of the constraints imposed by the government of the People’s Republic of China which allowed for the growth of the enterprises. This stimulated the businesses that enabled them to seek and work for returns enabled by the economic atmosphere that permitted such. The International Finance Corporation found that the main restrictions that obstruct business growth include access to finance, prejudicial competition, unreliable policy implementation and availability of information. To address these issues, the government introduced various ways to alleviate the problem and continue to do so consistently (Asian Development Bank, p.vii). The realization of these policies serves as an anchor that empowers enterprises to pursue continued growth in the region from the vantage point that was the Open Door Policy. The recognition of the involvement of the private sector in the country’s development was pivotal in clearing the path for acceptable growth. The fear of capitalism overtaking the ideology of Marxism has posed a constant battle to the region. The promotion of market-oriented reform came into being with the slackening toward a new ownership structure from firmly public ownership. â€Å"Since the late 1980’s, private enterprises in China had grown continuously an average rate of more than 30 percent every year since 1992. By the end of 2005, the number of private enterprises was 4.30 million, while total registered capital was 6,133.11 billion RMB, hiring a total of 58.24 million employees. Non-public