18:Posttest 18 Economic Development and Transition

1. China's steps to modify its centrally planned economy included

O special economic zones to encourage foreign investment

O an increase in the military budget

O an emphasis on subsistence agriculture

O a loosening of political controls

special economic zones to encourage foreign investment

One of the first measures that China took to reform its economy was the creation of the special economic zones.

These zones had more favorable conditions for foreign investment. The first of these zones was located in the province of Guangdong: the city of Shenzhen, which is a economic success story to this day.

a loosening of political controls

A few political controls over investment and trade were removed, this in order to increase economic activity. Some public enterprises were also privatized.