China new Economic Superpower

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China-Economic-Superpower

In the Soviet Union and Eastern Europe communism fell with a bang and the economies were opened with a big bang; but the economies of these countries stagnated. In China the communist party did not fall at all and the economy has been remade not with a big bang but step by step. But its economy grew like wildfire.

China’s success is staggering. The largest other backward economy thus far to grow for several years at a rate close to double digits is South Korea.

South Korea has a population of 48 million.

What makes China’s success so striking is the contrast to the

economy failure of the European countries that abandoned

communism.

Western people and Americans above all, were thrilled by the

Overthrow of the communism regime of Eastern Europe and Soviet Union and repulsed by the survival of the Chinese communist regime after the Tiananmen incident.

Yet many Chinese families are thankful that they leave In China, with a regime that provides order and allow them to escape poverty, and begin to enjoy the benefit of modern industry. Other nations know that China’s technology is not yet up to world standards, that its infrastructure is far behind modern countries, that Its bureaucracy is bloated with a low degree of efficiency and that many officials are using their positions for private gain. And yet other countries cannot discount China’s rising power. East Asia remain the most rapidly growing part of the world and within East Asia, greater China is increasing its influence.

THE RISE OF CHINESE ECONOMY

“To get reach is glorious” DENG XIAOPING

For centuries, China stood at the pinnacle of world technology.

For the past two centuries, China has experienced weakness and its people have lived in poverty.

As late as 1985 more than 100 million Chinese had to subsist on an annual income under $30. About 40 million people live in caves. In some area, the average value of the total possession of a peasant household was under $3. Such desperate circumstances gave rise to the phenomenon of the one pants family in many areas of rural China. A family possessing only enough clothing for one member. The man gets to wear the pants for work in the field during the day while the woman hides her shame, than the woman gets to wear them in the evening. In another variation, villagers too poor to afford any clothing blackened themselves with charcoal to create the illusion of black clothing.

All this is becoming a thing of the past.

The Chinese economic takeoff that begun with the implementation of Deng Xiaoping’s 1979 economic reform plans is eliminating such poverty at a rate previously sustained only by relatively small countries (Hong Kong, 6 million people,

Singapore, 2 million, Taiwan, 20 million).

The Chinese takeoff appears to be unique in the world history.

During the 1980s China was the world faster growing economy.

In 1992, once again, at a time when both USA and Japan were suffering severe slowdowns.

China government focus on the single minded pursuit of economic success. Internationally:

PR of China has ceased to promote revolution abroad.

China made peace with all its neighbours, reduced military spending, opened trade with virtually all country, including ideological opponents such as Taiwan, put pressure on North Korea to maintain peace in the Korean peninsula and established formal diplomatic ties with old enemies such as South Korea.

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