China’s economy grew when it opened to the global economy in 1979. However, the growth was substantial when the country entered the WTO in 2001. This attracted foreign direct investment in the country and its exports were boosted. The financial crisis of 2008 had reduced the demand in the USA and Europe considerably. This slowed China’s economy and it was seen that the economy was highly vulnerable. It became evident that the strategy adopted by china from 1979 was risky and the country required a new strategy to decrease the vulnerability of its economy and fuel consumption domestically. In this period, 2007-2012, the provincial city in China situated near the mountains became the quickest city to grow with a GDP of 15% growth. This growth was resultant of suitable social and economic policies which was termed as the Chongqing model after the name of the city. This model consisted of policies that could boost public as well as private sector growth. However, several critics said that the model relied heavily on state institutions. The city’s leader was murdered; the new emerging leaders had to assess the model that had caused substantial growth in the city.
2- Strategic Alternatives
3- Recommended Action Plan