China has an astounding economic growth in the past 50 years and many of its exponential growth is a result of its immense work force and capital.  People’s republic of China (PRC) is under the rule of the single political party, but the economy is nothing like other communist countries.  China is under free-market economy that encourage freedom of  private businesses to maximize economic growth . The market is always open to foreign markets and it is unbelievable to think that around 95% of our commodities are made in China.

In  Nicholas R. Lardy’s  book about private business and state own business, it is clear that the Chinese government owns a majority of the Fortune 500 List Chinese companies, but we can not underestimate the power of private companies,and many of them are even larger corporation than the state own business. One of the successful private business will be Luoyang ltd, my dad’s factory: the factory that focus on mining and steel-making of Molybdenum Metals that was an essential raw material for airplanes, sports cars and many other vehicles. The market of Molybdenum Metals  maintains a steep revenue margin and  is not very competitive due to the high entrance barrier.  His company operate at a not sustainable rate but the business is highly ethical. His main factory alone in Henan province provided more than 500 job opportunities, and my dad can reduce cost for the cheap and  extensive labor market. I am always amazed for what his company can accomplish and I wish I could start a private company just like him but better and more sustainable. China is slowly but surely transitioning into a highly effective market economy, and the free private companies induce the most profit and generate the highest economic growth.