China used the market system without losing political commitment and succeeded in raising the level of growth along with alleviation of poverty. Unlike India and Pakistan, which are attempting to privatise their PSEs, China has used the market mechanisnm to create additional social and economic opportunities. By retaining collective ownership of the land and allowing individual to cultivate lands, China has ensured social security in rural areas.

Which economic system does China follow?

Socialist economy

Socialist economy is the economy where all the economic activities are controlled by the state. The government decides how goods are to be produced and distributed in the economy.