How was the Chinese path of market economy different from the one adopted in Russia?

The way of a market economy that was followed by the Chinese economy was different from its own path. Chinese did not go for shock therapy but opened their economy by step by step. The privatization of agriculture in 1982 was followed by the privatization of industry in

1998. Trade barriers were abrogated only in SpecialEconomic Zones (SEZs) where foreign investors could set up enterprises. In China, the state played and continues to play a central role in setting up a market economy.

The new economic policy which was followed by the Chinese has contributed majorly towards uplifting from the stagnation. Privatization of agriculture led to a remarkable rise in agricultural production and rural incomes. The rise in the income of the rural sector led to higher savings in the economy and rural industries were flourishing. The Chinese economy, including both industry and agriculture, grew at a faster rate. The new trading laws and the creation of Special Economic Zones led to an extraordinary rise in foreign trade. China has become the most important hotspot for foreign direct investment (FDI) anywhere in the world. It has large foreign exchange reserves that now allow it to make a big investment in other countries.

While the Chinese economy has improved dramatically, not everyone in China has received the benefits of the reforms. Unemployment and many other factors which have been affecting the normal life were hand in hand in the Chinese economy.