Lessons from Expanding Private Sector Participation in China over Three Decades

When my organization, IFC, a member of the World Bank Group, began investing in China in 1985, the country was far from the economic juggernaut it has become. It accounted for just 2.4 percent of the world economy, and attracted less than US$ 6 billion per year in foreign direct investment.

China's transformation since then has been one of the world's most remarkable stories – lifting hundreds of millions of people out of poverty and expanding into the world's second largest economy. Structural reforms and adjustments that began under Deng Xiaoping have unleashed a vast amount of latent productive capacity and ignited the spark of private sector entrepreneurship. Their continuation will be critical to China's continued success, and the country's leadership has emphasized its commitment to reform.