On the first of October, 1949 the Chinese communist leader Mao Zedong shut the nations doors to the foreign trade and decided to be self reliant, we witnessed a rapid decline in the world's interest towards china. Now, not a day goes by that we don't think of or read about the Chinese economy. Hell, you are reading about it right now aren't you? So, when did China actually put the peddle to mettle and steer its way into a sky rocketing national economy?
It was almost 30 years past the "lock-down", in February of 1979, the paramount leader of the People's Republic of China visited the United States. Deng Xiaoping is the first Chinese leader ever to tour the US. This put china on the international stage, propelling a huge wave of economic growth of China.
The huge population of china (1.4 bn) is very unevenly distributed in terms of access to resources and opportunities with less than 16 % of the total population residing in the 14 mega cities of China. As of 2018, China is responsible for 18.6% of the Global Gross Domestic Product. It exports 41% of the worlds computes, 34% of all air conditioners and 70 % of all mobile phones in the world turning it into a global power house but how did we all miss it ?
Lets quickly draw a comparison, in 1960 the Chinese GDP was 59 billion vs the 543 billion of the US. This was largely due to the mass agrarian industrialization that was encouraged by Mao. After the World War 2, US and China were staunch enemies however their strategies to keep their army stocked was similar. China threw itself into mass production ,what followed was a disaster that China had not anticipated, the famine of 1959 - 1961. Essentially leaving China barren and turned to raze.
Nixon, attempting to bring democracy to China goes to meet Mao. However, Mao dies just 2 years later and this works in the favor of the US. Deng Xiaoping, opened China to the West and soon starts the economic reforms program in China creating a Special Economic Zone, where factories will be permitted to export to the west and the importers can trade with the outside world. The idea is to build an economic engine to transform China. Shenzeng, a fishing village with population of 5900 was the first SEZ , by 2016 its population swells to 12 mn with a GDP growth of 24,569% . Yes, you read that right. In these early SEZ's the managers take advantage of the high availability of labor and naturally the production sky rockets. Anywhere else, this would be termed as bold capitalism but in China it was socialism with Chinese characteristics. This justified the need to fulfil the western demand while satisfying the labor of their rights. Soon enough, the shanghai stock exchange opening made it a true capitalist economy however communist they believed to be.
With Clinton's support, China soon enters the World Trade Organisation in Nov,1998. Guess what, that's when Chinese economy hit the 1 trillion mark. The one differentiating factor was that when the entire world and the democratic governments were shifting the onus on to the people, Chinese government bailed Chinese businesses worth 586 billion making the Chinese economy an unstoppable force. In 2008 China expanded to Africa and Asia depending less on the west. Xi Jinping's turn now,
Xi jinping strategy can be simply viewed as a land grab using China's deep pockets. The Chinese Government has invested in rail roads to Europe, Oil Pipe lines from Turkey and many more. This has certainly made the world notice China. Economists suggests by 2025, China's GDP will overtake the US.