ABSTRACT
The objective of this chapter is to take account of what and how the Chinese economy achieved following its post-1978 turn-around. It scrutinizes the structural transformation of the economy and enumerates its superlative achievements. Rapid growth and transformation altered the People’s Republic of China’s place on the global economic stage from marginal to central. Among the important changes taking place in China were the growth and steady rise of private-sector enterprises, although it is still a mixed economy where the state-owned enterprises (SOEs) play a salient role. For the first time China succeeded in creating a substantial middle class-a driver of economic growthand also a prosperous class. China’s domestic demand strengthened and began to matter for the regional and global economies. As it grew into the second largest importing economy in the world, it global significance increased markedly. It became the center of the world economic affairs essentially through manufacturing-led growth.
