Economy of China

Topics: People's Republic of China, Deng Xiaoping, Mao Zedong Pages: 2 (545 words) Published: October 7, 2014
Economy of China

China’s economic growth has no historical precedent and it is often described by analysts as one of the greatest economic success stories in modern times, changing really quickly from one of the poorest countries in the world, at the end of the 70’s, to the second largest economy in the world, and according to predictions it could become the largest within the next five years or so.

Actually, in the Premodern Era, China was one of the worlds’ economic and technological leader.In fact, it is commonly agreed that China led the world in science and technology from about the tenth century to about the fifteenth century. The Chinese sciences and technologies were concentrated in several fields, mainly material production, transport, weaponry and medicine. Usually the Song Dynasty (960–1279 CE) is referred to as the most prosperous era of Ancient China, and this is when the “Four great inventions” were made: compass, gunpowder,papermaking,printing.

However, between 1500 and 1800, China lost its leadership position to Western Europe, the Qing Dynasty was the last prosperous period before the decline.

China didn’t start its industrialization process until about the 1950’s with the establishment of the People’s Republic ( october 1949).Between 1949 and 1978 Mao Zedong and the Chinese Communist Party established a socialist planned economy based on abolition of property,rural collectivization and central planning. Thus, the turning points in China’s economy growth are the death of Mao Zedong in 1976 and the economic reforms, under Deng Xiaoping, in 1978 according to free market principles, opening up trade and investment with the West, in the hope that this would significantly increase economic growth and raise living standards, shifting from a centrally planned to a market based economy which led to rapid economic and social development.

Reforms began with the phasing out of collectivized agriculture, and expanded to include...
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