Introduction

Napoleon Bonaparte is believed to have said: “Let China sleep. When she wakes she will shake the world.” It is not known if he really said this. But the saying is at least partly true. These days China is changing the world economy. Starting in 1980, China’s economy has grown faster than any other in the world. Why did this happen? Look at China’s economy in the later part of the 1900s.

China had some growth under the Communist leader Mao Zedong. Communism is a form of society when the government owns everything. Mao ruled from 1949 to 1976. China’s economy grew more after Mao’s death. Why? There are many reasons. China opened up its economy. The government lost some of its central power. It allowed more private businesses. It traded more with other countries.

China after World War II

China was in a major war with itself in the mid-1900s. The war ended and the Communist Party of China took power. A new communist system began. The party leader was Mao Zedong. Mao wanted to bring China out of the past.

His government put money into growing cities and producing goods. Rural land was changed. The government gave land and resources to people who had less. The communists wanted to make China more equal. By the mid-1900s, some of these efforts had worked. Life in China was better overall. Fewer people were poor. More people could read. There was more education. Mao was not happy, though. He wanted change to happen faster.

In the late 1950s, Mao started a new plan. It was called The Great Leap Forward. He wanted to change the countryside. He wanted to bring new technology and more education to the rural Chinese.

The Great Leap Forward had some successes. Railroads, bridges, and power stations got better. But the costs were more than the benefits, and the plan failed. Poor planning and bad weather led to serious problems. In the early 1960s, about twenty million people died of hunger.

In the mid-1960s, Mao had another plan. It was called the Great Proletarian Cultural Revolution. Mao wanted to change the culture of China. He felt the too much of the old, pre-communist China remained. In the late 1960s, people were told to destroy the “Four Olds”. These were Old Customs, Old Culture, Old Habits, and Old Ideas. Much of China’s history was lost.

This hurt religious communities. It hurt ethnic minorities. Buddhist, Christian, and Muslim communities were treated unfairly. In some cases, people were killed.

Changing directions

Mao died in the late 1970s. Then, China moved away from his communist views. Deng Xiaoping became the leader of China. He changed China’s economy to be more capitalist. Capitalism is when people compete for money and power. Deng wanted China to make more goods. He wanted to work with other countries. Mao did not want to work with the West. Capitalist ideas became a larger part of the Chinese economy. Many of Mao’s plans were undone.

Deng’s plan was a success. China’s economy grew. Fewer people were poor. The average Chinese person was healthier and lived longer. Other countries bought more goods from China.

China and the global economy

Many of the goods we use today say “Made in China.” This was not always true. China used to make fewer products for other countries. The economic ideas from the mid-1970s changed that. By the early 2000s, these changes were easy to see. China supplied most of the world’s clothing and computer parts. By 2010, China was the world’s second largest economy.

China developed better relations with Western countries. The Chinese also gave money to Africa. African nations built their own businesses. Some people think this relationship helps China and Africa. Others worry China is taking advantage of Africa.

China has become a major world power. Since the 1990s, the country has joined many global organizations. This includes the World Bank. China also belongs to the World Trade Organization.

These changes might seem very good. But changes bring new problems. Chinese cities have too many people. The environment is hurting from too many people. Inequality has gone up. Most of China’s wealth is owned by a small group of people. Many Chinese people lost their jobs when the government programs became smaller. Over a hundred million Chinese had to find new work.

Opening up its economy was a big deal for China. This changed China’s economic path. East Asia’s share of world production has gone up. American and European shares have gone down. We can make guesses about what this means. It is clear that China is now more than ever an important part of the world economy. Looking ahead, China will probably continue to be a major power.