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 it does hold some truth. These days, China is changing the world economy. Since 1980, China’s economy has grown faster than any other in the world. How did this happen so quickly? Let’s look at the country’s economy in the second half of the 1900s.

China had some growth during the time of the Communist leader Mao Zedong. He ruled from 1949 to 1976. China’s economy really grew after Mao’s death, though. Why? There are many reasons. China opened up its economy. The government lost some of its central power. It allowed more private businesses and trade with other countries. There were also major cultural changes.

China after World War II

In the mid-1900s, China was divided because of an internal war. The war ended with the Communist Party taking control of China. A new communist era began. Communism is when the government owns everything.

The Communist Party’s leader was Mao Zedong. He wanted to bring China out of the past. He said the country must uphold communist values, not capitalist ones.

The Communist Party reorganized the state. Rural land was changed, agriculture groups formed, and money poured into cities. More goods were produced in these cities. Land and resources were given to people who had less to create more equality. By the mid-1900s, some of these efforts had worked. The quality of life for the average Chinese person was better. Fewer people were poor. More people could read and go to school. Still, Mao was not satisfied with the speed or equality of the changes. Cities grew rapidly. Rural areas, meanwhile, fell behind.

In the late 1950s, Mao announced The Great Leap Forward. This was a program to change the countryside. Mao wanted to bring new technology and more education to rural Chinese people.

The Great Leap Forward had some success. Railroads, bridges, canals, and power stations improved. But the costs outweighed the benefits and the plan failed in the end. Poor planning and bad weather led to a low food supply. In the early 1960s, about twenty million people died of hunger.

In the mid-1960s, Mao started another program. It was called the Great Proletarian Cultural Revolution. Mao believed the economy was slowed because of capitalist values in the Communist Party. Capitalism is when people compete for money and power. Mao’s solution was to change the culture of the country. China had a military group known as the Red Guards that was made up of mainly young men. In the late 1960s, the guards were ordered to destroy anything related to pre-communist China. There were “Four Olds.” The olds were Old Customs, Old Culture, Old Habits, and Old Ideas. Much of China’s history was lost.

Religious communities and ethnic minorities suffered. Buddhist, Christian, and Muslim communities came under attack. In some cases, ethnic minorities were killed.

Changing directions

After Mao’s death in the late 1970s, China moved away from his communist views. Deng Xiaoping was China’s leader during the 1980s. China’s economy went through large changes.

Like Mao, Deng Xiaoping wanted production to go up. He wanted to make the country more modern. Deng was more open to working with other countries. This meant that capitalist ideas became a larger part of the Chinese economy. Many of Mao’s plans were undone.

Deng Xiaoping planned to improve life in China by the year 2000. His plan worked. China became politically stable and the economy took off. Fewer people were poor. The average Chinese person was healthier and lived longer. Other countries were buying Chinese-made goods.

China and the global economy

Many of the goods we use today are labeled “Made in China.” This wasn’t always the case. China used to send far fewer products around the world. The economic ideas that started in the mid-1970s changed that. By the early 2000s, the results of these changes were seen. China was supplying most of the world’s clothing, shoes, and computer parts. By 2010, China was the world’s second largest economy.

China developed better relations with Western countries. China also gave money to build Africa’s business. Some people view this relationship as a positive for both Africa and China. Others feel China might take advantage of Africa. If a plan fails, the African country will owe China money.

Globally, China has become a major presence. Since the 1990s, the country has joined a number of world organizations. This includes the World Bank and the World Trade Organization. Japan used to be the leading global producer of goods. Over time, China has passed Japan.

These changes might seem very good. But change brings new problems to solve. China has major problems with overcrowded cities. The large population is damaging to the environment. Inequality has also gone up. Most of the country’s wealth is owned by a small group of people. Many people lost their jobs when the government programs became smaller. Over a hundred million Chinese left their homes to find work.

It is clear that opening up China’s economy changed the country, for better or worse. In the past few decades, 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. The answers are not quick and easy. It is clear that China is more important than ever to the world economy. Looking ahead, it will probably continue to have major power.