The Rise of the Chinese Economy
The late 20th century was the height of Western economic dominance. Observers, and scholars, believe the current Chinese economic rise will be sustained until it dominates the world. With economic strength comes political power; China is the next first superpower.
Long before the rise of the West, Chinese trade dominated Asian markets, and they developed markets throughout the region. While the West was developing its first incipient industry China accounted for a quarter of world economic output. China was barely penetrated as the west overtook the world economy. Only until the end of the Ming Dynasty, in 1644, did the “ Middle Kingdom” begin a steady regression.
After 300 years of decline, the Second World War, and a civil war the Peoples Revolutionary Army brought in the current era. 1949 saw the establishment of the Peoples Republic dominated to this day by the Chinese Communist Party.
The 1950s was a period of Soviet style economic planning. Industrial investment in steel, mining, energy, and infrastructure grew while neglecting other sectors. Through the 1960s slow economic growth provided the initial markets in consumer goods. Market reforms began in the 1970s while the Communist Party kept major sectors under its control.
State policy took a full swing toward capitalist economy in the 1980s and 1990s. Productivity rose dramatically when personal income and consumer good availability increased in the domestic economy. New policies allowed for incentives and small business growth. With investments from multi-national corporations, the expertise of overseas Chinese industrialists, and trade liberalization China returned to world economic power.
Being the second largest economy at 508 trillion GDP, the largest exporter/importer, and growth rates averaging 10 for three decades set the stage for China to become the world’s largest manufacturer in 2011. And, there are few signs growth won’t continue well into the future.