question_answer

In which four ways did the new economic policy of China benefit its economy?

Answer:

(i) The state played and continues to play a central role in setting up a market economy.

(ii) Privatisation of agriculture in 1982 and privateisation in 1998.

(iii) New trading laws and creation of special economic zones

(iv) High personal savings in the rural economy led to an exponential growth of rural industry.

(v) Chinese economy grew at a faster rate. The SEZ led to a phenomenal rise in Foreign Trade.