Reforms in China have gained importance and are the major driver to the success and growth of the economy. The transition of China from being a closed economy to one that is open has modernized the country and encouraged reforms that drive growth.Chinahas been focusing mainly on three strategies that have driven growth in the economy. The government has adopted a policy to increase the demand locally with the help of effective fiscal and monetary policies since it will aim to increase purchasing power, to come up with reforms that welcome foreign direct investment since it will drive economic growth and this way privatization will be encouraged and to develop the west side of China.
China’s way forward towards WTO during November 2001, broke the country’s traditional and conservative planned economy to a more open market economy since WTO promotes globalization to encourage change and growth. The modernization of China began due to WTO and the WTO has focused on three aspects in China; turning into a law abiding nation that is developing and encouraging an effective corporate governance, reforms to develop banks and turning into an open or market economy. WTO has had a major impact on the corporate governance in China. Although, the country is still dominated by state-owned enterprises yet corporate governance in China after WTO has developed. The corporate governance code of China focuses more on transparency of business and the following of law that encourage economic growth. The governance code has been encouraged and directed by the WTO to cover the laws regarding trade and investment that the businesses must follow. Involving all businesses in the law making and developing stage will help all companies to easily adapt to the laws they themselves were involved in developing, hence, encouraging efficient law making and development of reforms.
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