Why is the Chinese Economy growing so fast?

There are a number of reasons as to why the Chinese Economy is growing so fast. The main reason is firstly due to them being a socialist country. Because of socialist ideology, China adopted a command economic system which is where the state directs what gets produced and how to produce it. Although, as of late, China has started to drift more towards a transitional economy, as they have started to liberalise some sectors that have prompted individuals to make decisions on the basis of supply and demand, rather than central planners that dictate as to what gets produced. This has enabled more room for growth as businesses would now be providing what is demanded by consumers, thus allowing them to create more of a profit. After China liberalised it's state control, the country's growth has been exponential.

  

 

China has now started to invest huge sums of money into other countries. This would enable them to grow because they would now be recieving even greater amounts of money due to their previous investments and the interest they would recieve. The graph above indicates to us that as of late, China has now invested colossal amounts into foreign countries.Secondly, China invested in industrial production and the education of it's own workforce, which has allowed them to become much more efficient.

 

Here is a Youtube video which says that China has increased it's population by 74 Million people in 10 years, which is an extremely impressive feat. This has enabled China's growth to increase speedily, as it's workforce would now be getting greater and greater. With a greater workforce, a larger amount of goods could be both produced and consumed.