The effect of this policy:
Before this policy came out, China was a poor and backward self-sufficiency country like an isolated island in the world. The 30 years’ reform and opening-up has shifted China to an open market for the world and raised people’s living standards; meanwhile, it also caused the imbalances in China’s economy. One of the effects of this policy is that it transformed China from a self-contained economy into an open-market economy. Nowadays, the economic activities which take place in China are much more than before, so more and more multinational enterprises are coming to China, such as Adidas, Coca Cola, and Starbucks. In the meantime, according to Charles(2014), Chinese domestic companies increasingly began to invest across national borders and privatization has been more wide-spread. Before the policy was put forward, China is an autarkic country where people were not able to have multiple choices on products in the market. However, now international trade is bringing a rapid increase in foreign direct investment and the outsourcing of goods and services.