Ground Report | New Delhi: China’s Successive Economic Growth; China is the world’s most populous country with a population of 1.4 billion people, even with such a huge population and devalued currency China managed to grow a massive economy out of the rubble. China is a country that devalues human rights and curbs the dissented voice, with a communist mindset. Although with such a negative approach China is currently the richest country, leaving the United States behind. What led to this rags to riches real-life tale of country, is fascinating.
China is well known for its rich, traditional, and cultural heritage but today, the entire world is talking about its actual richness which had the world in shock. Being a developing, communist country China has been able to maintain trade relations with other countries. It also opened itself as a hub of affordable technology.
What Led to the Economic Growth?
China didn’t have successive growth early on, the country was in economic turmoil in the early 1970s when Japan invaded China, soon after the British. It was the era of industry, China saw the opportunity to open a part of itself to capitalism, an entirely different ideology than what it stood for. Mao Zedong was the leader during this time, but in the late 70s after Mao’s death, Deng Xiaoping came to power and open a part of China, Shenzhen part which is attached to the border of formally owned British colony Hong Kong to the world, as a hospitable place to market and open businesses and opportunities for trade.
This was done seeing the booming economy of Hong Kong which was fully functioning during the industrialization period due to capitalism. Soon opening more regions to capitalism China saw its economy growing, this was just a starting phase for China’s developing economy.
China’s Economic Boom Today-
- China as stated above is currently the richest country in the world surpassing the United States of America.
- China since opening up to capitalism didn’t completely adopt it but somehow gained benefit from it, China attracted many big multinational companies for investment while providing available cheap labour.
- China’s currency is also less in comparison to the dollar and currently is devalued against the US dollar which China thinks of as an economic strategy.
- The Country has private investments and uses them to expand and grow its state further challenging America and Japan.
- China also has surpassed US trading with Africa, it trades with 40 out of 54 countries of Africa
- The emergence of President Xi Jinping in 2012, brought one-man rule to the state and puts the country’s investments largely in underdeveloped or developing countries to further strengthen its foreign policy.
- The students often study either in the country. If they go abroad for further studies, they get back to work in their land, leading to less to no brain drain.
- China’s fall in GDP to a significant 14.2% didn’t let the country fall in turmoil but rather shifted to private consumption and innovation and growth and took 800 million people out of poverty.
- China relied not just on imports but largely on its exports of assembling and raw materials to other countries.
China’s policy in internal matters and matters of civil rights is devastating but its economic growth can give a lot of ideas to other developing economies. The boom is currently high but China is shifting unfortunately to the average age of 50 Plus, lacking the youth power it once had and took advantage of. What will happen in the future and will China be able to maintain its economic boom? or will it hit the ground? These are a few questions we are still curious to learn.
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