Future of China Case Solution

Posted by John Smith on March 10th, 2018

The Chongqing Model and the Future of China Case Solution

Since opening towards the global economy in 1979, but especially since entering the WTO in 2001, China's economy increased at rates around 10% yearly by bringing in FDI and marketing exports. Following the economic crisis that started in 2008 and depressed demand within the U . s . States and Europe, China's growth started to slow, and weaknesses in the economy found light. It grew to become obvious to a lot of in China the growth strategy that got China from 1978 to the current was not sustainable which the nation needed a brand new technique to resolve the nation's regional inequalities, stimulate domestic consumption, and make growth less susceptible to global contractions sought after.

At exactly this time around, between 2007 and 2012, the provincial town of Chongqing in China's mountainous southwest grew to become the quickest growing city in China with GDP growth calculating over 15%. Chongqing's growth was the effect of a suite of monetary and social guidelines that were named the "Chongqing Model," a questionable bundle of reforms that guaranteed private and public sector growth with benefits more equitably shared by all people. Yet experts found the model politically suspect and also over dependent on condition-possessed businesses and debt-driven investment. Once the city's prominent leader was openly fired carrying out a sensational murder scandal, the region's new leaders-and even China's new leaders-needed to weigh in around the "Chongqing Model." Wouldn't it signal a brand new road to wealth for publish-WTO China?