The authorities have switched to a system of household and village responsibility in agriculture in place of the old collectivization increased the authority of local officials and plant managers in industry, permitted a wide variety of small-scale enterprise in services and light manufacturing, and opened the economy to increased foreign trade and investment. The result has been a quadrupling of GDP since 1978. In 2001, with its 1.27 billion people but a GDP of just $4,300 per capita, the GDP of China reached 7.3% in 2001. Agriculture and industry have posted major gains, especially in coastal areas near Hong Kong and opposite Taiwan, where foreign investment has helped spur output of both domestic and export goods. On the other hand, from 80 to 120 million surplus rural workers are adrift between the villages and the cities, many subsisting through part-time low-paying jobs. Another long-term threat to continued rapid economic growth is the deterioration in the environment, notably air pollution, soil erosion, and the steady fall of the water table especially in the north. China continues to lose arable land because of erosion and economic development. Beijing will intensify efforts to stimulate growth through spending on infrastructure, such as water control and power grids, and poverty relief and through rural tax reform aimed at eliminating arbitrary local levies on farmers. Access to the World Trade Organization strengthens China's ability to maintain sturdy growth rates, and at the same time puts additional pressure on the hybrid system of strong political controls and growing market influences. .
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The Hofstede theory on China.
According to the work of Geert Hofstede, let's analyze the culture of China.
1. Power Distance.
We can find that Chinese PDI is the second highest index in the Hofstede theory, which indicates that inequalities of power and wealth have been allowed to grow within the society.
