Answer:
Below are the reasons and benefits of China?s adoption of soviet model of economy:
(i) After the inception of the People?s Republic of China in 1949, following the communist revolution under the leadership of Mao, its economy was based on the soviet model.
(ii) China chose to severe its links with the capitalist?s world. It had little choice but to fall back on its own resources and for a brief period on soviet aids and advice.
(iii) The model was to create a state owned heavy industries sector from the capital accumulated from agriculture.
(iv) Like Russia, employment and social welfare was assured to all the citizens.
China followed its own path in introducing a market economy. They did not go for ?Shock Therapy?, but opened their market step by step and now Chinese economy is very developed and constantly flourishing.
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