China has decentralized some aspects of the economy to allow more economic growth. What does this mean?

China's government has strict control over the economy

China has allowed some individual control of economic decisions and allowed foreign investment

China has given some political freedoms to its citizens

Chinese businesses have outsourced its labor to India

The correct answer is the second option.

Decentralizing the economy means that the government is backing off (while centralizing the economy signifies greater government involvement). Decentralization leads to greater individual freedom within the economy because the government is no longer controlling every aspect. This has nothing to do with political freedom, or outsourcing.