When Deng Xiaoping became the leader of China in 1978, the Chinese leadership recognized the

need for change. The country was still largely agrarian and poor, and the economy was stagnant.
The Chinese leadership considered adopting the shock therapy approach to economic reform,
which economists widely advocated. This approach involved rapid and comprehensive economic
reforms, such as the privatization of state-owned enterprises and the liberalization of prices.
However, the Chinese leadership ultimately decided against shock therapy. They recognized
better ways to achieve a prosperous society than the quick application of free markets. Instead,
they adopted a more gradual and incremental reform approach designed to modernize the
economy without abandoning the country's socialist system. Based on the factual approach
principle, the Chinese government did not just follow Russia's fall off; instead, they developed a
long-term plan to improve their economy, which includes technology, industrialization, and
many more. Their government identifies the critical areas needed to improve and develop a plan
for the country to attract foreign investors. This could help them strengthen their reputation and
ability to transact with different nations, leading to a higher GDP rate in their economy. One of
the successful plans the Chinese government implemented was to reduce the businesses' taxes,
making them more competitive. They also improved their infrastructure in pursuit of
accomplishing several products and transporting them into different cities in China, making it
easier and more efficient. In addition, the Chinese government also invested in education and
training, which is a huge help in their economy, holding a solid skilled workforce.

On top of constructing the plan, the Chinese government, as they implemented their plan, also
monitored the implementation of their economic plan and took several corrections as needed for
improvement. This strategy attracts foreign investors to invest in their emerging economy
because China is consistent and a model for other developing countries.