THE ROLE OF THE ECONOMIC AND POLITICAL HISTORY OF THE PEOPLE’S REPUBLIC IN THE PRESENT DEVELOPMENT PROCESS

Since its founding in 1949, the People's Republic of China has undertaken reforms in order to achieve a self-sufficient level. The desired success could not be achieved. In the 1970s, open door policy was implemented and reforms in the field of agriculture and economy were carried out again. This program succeeded and made the country the new super power of the world. The success of China in achieving this success is due to cheap labor, foreign direct investment attractiveness, increasing purchasing power, incentives provided, and the influence of location factors. The transition from the planned economic system to the free market system has been successful but limited in China. Because there are commodities for which the state controls the prices. Also the political transition has not been achieved. This article aims to reveal what the PRC has accomplished in this transformation, how it has succeeded, and what points it lack