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How Is China Doing

Updated on September 4, 2024

Since the communist took over in 1949, China has experienced great upheavals during Chairman Mao Zedong's 28 years of totalitarian rule. Under his watch, China has become one of the top military powers in the world. However, with state-controlled economics, China has remained a third-world underdeveloped country, with a billion people's standard of living 28 years behind that of Western nations.

Economic Reform

After Mao’s death, his once-persecuted successor, Deng Xiaoping, took a more pragmatic and socialistic approach. In 1978, the new government decided to open up for foreign investments to attract desperately needed manufacturing techniques and to experiment with free enterprise zones where companies and properties could be privately managed and owned.

Internally, the collective farming system was abolished. Even though the land still belonged to the state, the farmers were allowed to plant their own crops and allowed to sell and keep the surplus. After 30 years, the transformations have been dramatic. China has become the largest export country with a foreign reserve of 3 trillion US dollars.

In the city, high rises were erected, and freeways were paved. Urban dwellers started to enjoy a materialistic and capitalistic lifestyle that people could only dream about during Mao’s reign. In the rural regions, starvation and poverty were things of the past, and farmers' lives and well-being were vastly improved.

World View

As China gained economic traction by becoming the factory of the world through low labor costs, hard work, reliable and quality products, it amassed a huge foreign reserve and held large sums of foreign debts (while incurring heavy air pollution and land contamination). Western nations invariably became alarmed and started complaining about unfair monetary policy, government subsidies, and the dumping of unreasonably low-priced goods (while overlooking the heavy price China had to pay for their achievements).

But China counters that life is never fair and easy. It wasn’t long ago, during the late 1800s, taking advantage of China’s weak government and rich resources, Western countries invaded, plundered, and occupied China by force, The brutal aggressions plunged China to its darkest times and only recently, it is able to catch its breath and takes the first step toward recovery.

With more than 1.4 billion people to feed and clothe, the government needs to master all the tricks in the book to position itself on an even heel to compete with the Western countries economically. Only then can China play under the same international rules as the rest of the world.

The Communist Party

The Chinese Communist Party has around 99 million members, whose membership is reviewed and accepted based on a stringent set of ideological criteria. The central government is managed by about 200 officials elected by the party members every five years. Major decisions and policies are made by a circle of seven top party members, including the General Secretary (the leader) and the Premier (CEO).

Since no opposition party is permitted, the communist party has pretty much its way of running the country. Through the economic reform policy, starvation and illiteracy are eradicated. However, people’s freedom of speech, freedom of the press, and due process of the law are still under tight control and abuse.

As a new and better-educated generation of party members takes office, official corruption, public service and safety, and the disparity between the rich and poor are the prime concerns of the present government policy.

The Future

China was under monarchial and totalitarian rules as recently as 1900. The last hundred years of the Qing Dynasty were especially disastrous. The bitter, painful, and shameful experiences of that time will forever be etched into the memory of every present and future Chinese people.

China’s rapid achievements during the past 20 years in space station and moon exploration, aircraft carriers, battleships, fighter jets, High-Speed Rail, EV, renewable energy, GPS, and supercomputers, as well as Belt and Road partnerships with more than 100 countries, have propelled China to become the second largest economic power in the world behind the USA and the third largest military power in the world behind the USA and Russia.

No longer the weakling it once was, China is ready not only to defend its country from foreign aggression and bullying but also to reclaim its lost territories in the Pacific and South China Sea. At the same time, China is using its Belt and Road Initiatives to help underdeveloped countries build infrastructure, enabling them to develop their resources and revitalize their economies.

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