Given below are two statements :
Statement-I : The economic policies implemented by China helped to break the stagnation of its economy.
Statement-II : Economic development of China also increased environmental degradation and corruption.
In the light of above statements, choose the correct answer from the options given below :
Given below are two statements :
Statement-I : The economic policies implemented by China helped to break the stagnation of its economy.
Statement-II : Economic development of China also increased environmental degradation and corruption.
In the light of above statements, choose the correct answer from the options given below :
Options
Official answer
The correct option is (A) Both Statement-I and Statement-II are true.
Why Statement-I is true
- Before 1978, China's economy was stagnant, marked by low productivity and food shortages under strict central planning.
- Deng Xiaoping's 1978 reforms — decollectivisation of agriculture, the Open Door Policy, and gradual privatisation — broke this stagnation and made China one of the fastest-growing economies in the world.
Why Statement-II is true
- Rapid, export-led industrial growth came at a real cost.
- China has faced serious environmental degradation (air and water pollution, deforestation) and rising corruption linked to unregulated economic expansion.
Marking scheme
- 1.1 mark for correctly choosing option (A) — no partial credit for objective questions.
Hint
Recall that China's growth story is presented as a success WITH costs — both halves of the statement are usually true in NCERT's telling.
Quick oral answer
Both statements are true — China's post-1978 reforms ended economic stagnation, but rapid growth also brought environmental degradation and corruption.
Common mistakes
- 1.Assuming a 'success' statement and a 'cost' statement cannot both be true, and picking (C) or (D) by mistake.
- 2.Confusing China's gradual reform model with Russia's 'shock therapy', leading to wrong inferences about Statement-I.
Analysis and explanation
This assertion-type MCQ tests whether students know both the achievements and the costs of China's economic reforms — a favourite CBSE exam trap where students assume 'reform success' rules out negative fallout.
Why the key (A) is correct
- Statement-I is factually accurate: the 1978 reforms under Deng Xiaoping ended decades of economic stagnation.
- Statement-II is also factually accurate: NCERT explicitly notes that China's fast growth has been accompanied by environmental degradation, growing regional inequalities and corruption.
Why the distractors are wrong
- (B) is wrong because both statements are supported by the textbook, not refuted.
- (C) is wrong because it wrongly denies the well-documented environmental and corruption costs of Chinese growth.
- (D) is wrong because it wrongly denies that the reforms succeeded in reviving the economy — the opposite of what NCERT states.
Interesting facts
China's economic reforms began in 1978 under the leadership of Deng Xiaoping, starting with agricultural decollectivisation.
China's economy grew at an average of nearly 10% per year for over three decades after 1978, one of the fastest sustained growth rates in modern history.
China joined the World Trade Organization (WTO) in 2001, deepening its integration with the global economy.
Question details
Q1 of 38 questions
- Board
- CBSE
- Class
- Class 12
- Subject
- Political Science
- Year
- 2026
- Section
- Section A
- Marks
- 1
- Chapter
- Contemporary Centres of Power
- Topic
- China's Economic Reforms and their Consequences
- Bloom's level
- analyze
- Syllabus topic
- Unit: Alternative/Contemporary Centres of Power — China's Economic Rise, Reforms since 1978 and their Costs
- Author
- CBSE
- Reviewed by
- Padhantu Academic Team
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Frequently asked questions
What year did China begin its major economic reforms?
China began its major economic reforms in 1978 under Deng Xiaoping, starting with decollectivisation of agriculture and gradually opening the economy to foreign trade and investment.
What were the negative consequences of China's rapid economic growth?
Rapid growth brought environmental degradation, growing regional and rural-urban inequalities, unemployment in some sectors, and rising corruption alongside unprecedented poverty reduction and industrial expansion.