Social and Behavioral Sciences Commons^™

The Development Of Private Businesses In China, Guibin Zhang, Zhong Qin

Faculty of Commerce - Papers (Archive)

China’s economic development since 1978 has been fuelled largely by a new private sector that has depended on entrepreneurship. In 1978 the private sector virtually did not exist. In 2005 it was estimated that about one-quarter of gross domestic product (GDP) was produced by the domestic private sector. However, the academic discourse on China’s private sector is lagging behind the sector’s actual development. Before the market reforms introduced by Deng Xiaoping in 1978, China relied on state entrepreneurship. When the model of state entrepreneurship began to run out of energy, the Chinese Communist Party (CCP) turned to private entrepreneurship as …