At present, many developing countries strengthen the economic development. China is a good example. After opening reform, Chinese economy has kept rapid development for 30 years, which has already grown to third largest economies in the world. The main purpose of this report is to identify and critically evaluate the key economic, political and technological factors conditions of China that have enabled it to become a ‘Rapidly Developing Economy’. And also this report will give some recommendations for China to sustain economic growth. Initially, it will have an overview about Chinese economic development and systems in recent years. Following it, this report will analyze the key economic, political and technological factors specifically that promote the country to become a “Rapidly Developing Economic”. At last, it will put forward the recommendations to sustain economic growth of China from two main points.

1.0 Introduction

Since reform and opening policy in 1978, Chinese economy has been in a rapid growth. From 1978 to 2007, the average growth rate of China’s per capita GDP is 8.6% per annual, until now it has not show any signs of slowing down. From 2000 to 2007, the average growth rate is 9.2% per annual, and the growth of China GDP accounted 35% of the world (Linda, 2012). It has not seen in the past that China, as a large population country, increased so fast, and China has started to eliminate poverty situation since1978. What’s more, the transformation from planned economy to market economy is very difficult during the early reform.

The first stage of the economic reform concentrated on rural areas from 1978 to 1984. Non-farm enterprises in rural areas are allowed to establish by the government, which encourages household savings (Spencer, 2012). Enterprises began to manufacture the light industrial products which nationalized business cannot supply. The rapid production improved the efficiency of agriculture, and people who live in rural area can find more jobs.