In 1978, after years of state control of all productive assets, the government of China embarked on a major program of economic reform. Before 1978, 4 out of 5 Chinese worked in agriculture. After 1994, only 1 out of 2 Chinese worked in agriculture. That is very impressive result after the China governments reform their productive policy
After 1978, Chinese started to build factories and started to import all the machines to manufacture products. Most people in China worked in agriculture and with very low income. Since there’s 1 billion of population in China after 1980’s and all of them wanted to earn more money, therefore cost cheap labor for factories. That’s why China’s economic grows so fast!
References:http://www.imf.org/external/pubs/ft/issues8/index.htm
Where is your follow up question? This is rather brief and lacks analysis. 8/10
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