Essentially, the open door policy refers to the allowance of equitable trade opportunities to all enterprises and countries in the economic environment (Tersptra, Tersptra, Xueli and Egri 12). In China, the development of the open-door policy has greatly helped in the development of the private sector, with the granting of measures that support the private sector. The Chinese economy did not previously support the use of the open-door policy since it meant that employees had access to the management in enterprises, and therefore, had an option to change or improve management techniques.
The development of the private enterprise in China has been marked by different policies by the Chinese government. The first factor that the government focused on in the private sector was the introduction of flexible interest rates, a factor that expanded the lending rate band for small and medium-sized enterprises. The second factor is the improvement of accounting and audit practices, which were previously targeted to the detriment of the development of the private sector. The government has also embarked on a mission to improve the capital markets, which will help in the quality of regulation of the sector, including improved factors like disclosure. How Private Enterprises in China Developed.
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