Startups Creation and Development in China

Abstract

The reform of the economic system in China initiated under the leadership of Deng Xiaoping in the late 70s of the 20th century included as the main components and mechanisms the gradual and consistent elimination of the state’s status of a monopoly economic entity. The economic reform was aimed at, first, the de-collectivization of the agricultural sector, the gradual implementation of individual and private forms of ownership, private economy management, and the transition from an administrative-command model of economic management to the use of commodity-money, and then market methods of economy management at the determining and directing role of the state. An open-door policy and foreign economy, as well as the use of the global economy mechanisms and potential, have become the most important components of economic reform and the entire development model of the Chinese economy.