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LI PO CHUN UNITED WORLD COLLEGE OF HONG KONG NICOLA ZILIO O CHINESE STUDIES COURSEWORK O 2164 WORDS TABLE OF CONTENTS 1. Introduction........................................................................... 3 2. Pre-Reform Conditions in China and Russia..................................... 4 3. The Chinese Bottom-Up Micro-economic Approach Versus The Russian Top-Down Macro-economic One.................................................. 5 4. Foreign Investment Policies in China and Russia................................ 7 5. Conclusion............................................................................. 8 6. Bibliography........................................................................... 9 1. INTRODUCTION Once a man said: "Black cat or white cat, it's good cat that catches the mice" 1 Deng Xiaoping and another replied: "The market is not an invention of capitalism. It has existed for centuries. It is an invention of civilization." 2 Mikhail Gorbachev Deng Xiaoping and Mikhail Gorbachev became famous in history to be the authors of two of the most important economic reforms of all times, respectively the Chinese and Russian ones. Nowadays it is habit to consider China's economic reform as the "Chinese Miracle"3, whereas that of Russia just as a mere failure. Data, in fact, support this thesis. Since China begun the...

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