China's Economic Journey
by Rit NosotroChange Over Time essay
How have China's economic policies changed over the last century, and what were their effects?
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Naturally, China’s political changes have affected the country not only socially but also economically. Three types of government have implemented their own type of financial system and the current government continues to steadily evolve toward a global economy.
Summary:
In the early years of the last century, china had been recently forced out of a state of national isolation. It was bombarded with technology and trade from the West under the government of the Qing dynasty. In 1911, the Qing was overthrown by a group of nationalists; and after this, remained in constant war and economic decline due to the Japanese and the Communist Party. The nationalist party was soon overthrown by the communists and was driven out of China, into Taiwan. This period was symbolized by its leader; Mao Zedong, who by his death in 1976; had put China even further back economically than it had been before.
Background:
Although Confucius had looked down
on the merchant class as a necessary evil; China’s famous Silk
Road during the Han Dynasty led to trade with the Romans. Centuries later,
yet before Europeans sailed to Chinese waters, Chinese mariners sailed colossal
ships to trade along the eastern coast of Africa. However, these voyages were
suspended by a dynasty who believed China had no need of foreign goods. This
economic and cultural isolationist policy endured over 300 years when it was
broken by the Opium Wars (1839-1842) which led to Western economic “Spheres
of Influence”. The influence also came from Christian missionaries such
as Issachar J. Roberts, who tried to correct the vain doctrines of Hong Xiuchuan,
leader of the grossly distorted Christianity of the Taiping Rebellion (1850-1864)
that ended with 20-30 million deaths. The western coalition that helped restore
the corrupt Manchu government further weakened Chinese sovereignty. Hudson
Taylor opened the China Inland Mission (1865) the following year. Missionaries
such as Jonathan GoForth and Lottie
Moon, risked their lives during the Boxer Uprising (1898-1900) that targeted
Christians at the encouragement of the dowager empress. This too was put down
by an international force that resulted an indemnity of $333 million, was further
forced China to a subservient status.
Naturally, China’s political changes have affected the country not only socially but economically. Three types of government have implemented their own type of financial system and the current government continues to steadily evolve toward a global economy.
Qing Dynasty:
Under the Qing dynasty China’s economy had been infused with a heavy load
of Western involvement. Due to the country’s closed status in the years
before the foreigners arrived, China’s agricultural methods were backward
compared to the Western world, and industry was almost nonexistent. Though they
often took advantage of the Chinese and their resources, foreign involvement
also brought Western technology. Forced to open coastal ports, a steady flow
of trade ensued between the West and the East. Although the Europeans introduced
railroads, highways, and started some industrial activity, the overall effect
on China’s economy overall was negligible since it did not involve the
hundreds of millions of peasants deep in the interior.
Nationalist Party:
Revolutionaries overthrew the Qing dynasty in 1911. A long period of political
strife and civil war ended much of the growth of China’s economy. Though
the Nationalist government under Chiang
Kai-Shek finally united most of China beneath its rule in 1928, it was constantly
dogged by internal problems and a long, costly civil war with China’s
new Communist Party. A truce between the two parties was brokered in order to
provide a united front against the Japanese, who seized Manchuria and its heavy
industries. The truce soon broke down, however, and the Japanese continued to
advance. Naturally, China’s economy suffered much through these turbulent
times, and the country remained in turmoil after World War II.
Communist Party:
In 1949, the Communist Party overthrew the incumbent government, and drove the
remaining Nationalist off the mainland onto the island of Taiwan. This ushered
in the communist ideals of socialism and other economic policies based on models
in the Soviet Union. All foreign interests were seized and ownership was given
to the state. Landlords were killed by mobs chanting slogans and full of zeal
toward the communist ideals. Private property became the property of the state
and of “the people”. The early 1950s were characterized by the collectivization
of farms and the “people’s communes” promoted by Mao
Zedong. The role of Chinese women
was also modified to better serve the state. In 1953, Mao adopted a policy of
rapid industrialization, mobilizing the masses in an attempt to create factories
and produce steel. This brought about the notoriously inefficient backyard furnaces
into which the people threw their metal belongings. Mao’s launching of
the Great Leap Forward in 1958 implemented his questionable agricultural policies
and impractical industrial methods. Idealism quickly proved to be a poor booster
of the economy as the Great Leap Forward ended in disaster. A massive food shortage
killed millions of people as more moderate party leaders attempted to create
better policies. Worried that his policies were losing popularity in the Communist
Party, and blaming his economic policy failures on counter-revolutionaries, Mao
launched the Cultural Revolution, purging the party of leaders who resisted
his policies and setting China even further backward economically.
Mao’s death in 1976 not only symbolized the end of his policies, but a time of intense reform as many of the Soviet methods and ideas were reversed or discarded. Deng Xiao Ping embarked on a journey of reform that banished collectivization and opened China’s doors once again to foreign investment. Allowing privatization in some parts of the economy led to growth in industry and improved agricultural methods increased China’s output. Deng removed many of the restrictions on China’s economy in 1992, starting an age in which capitalism began creeping back into practice.
Conclusion:
Today, China’s economy has changed greatly since the 1950s. The establishment
of Special Economic Zones (such as Xiamen, where the majority of this essay
was written) has welcomed foreign investment and development, and these cities
are thriving economically. Agriculturally, modernization of farming techniques
continues to boost productivity, though farming remains a low income job. Urbanization
continues, but the large majority of China’s population remains as poverty
stricken farmers. No longer socialist, China has moved steadily toward decentralization.
Increasingly, industries and enterprises tightly controlled by the state have
been allowed a measure of freedom, and incentives have increased production.
As we begin the journey through the 21st century, China’s economy continues
to develop and evolve.
Quick Quiz:
1. What did the European powers introduce into China during the Qing dynasty?
a. Railroads
b. Rice
c. TVs
d. Gunpowder
2. What did Mao Zedong promote?
a. Backyard furnaces
b. Democracy
c. Moderate economic reform
d. Chunky Campbell’s soup
3. What did Deng Xiao Ping NOT promote?
a. Economic reform
b. Collective farming
c. Foreign trade
d. Modernization of agricultural methods
4. What does NOT characterize China’s economy today?
a. A large amount of foreign investment
b. Increasing urbanization
c. Decentralization
d. Attempting to be like the Soviet Union
Bibliography:
"China," Microsoft® Encarta® Online Encyclopedia 2004
http://encarta.msn.com © 1997-2004 Microsoft Corporation. All Rights Reserved.
“China,” Columbia Encyclopedia, Sixth Edition, Copyright (c) 2004.
http://www.encyclopedia.com/html/section/Enlighte_BackgroundandBasicTenets.asp
“China, Economy of,” WikiPedia ©2004
http://en.wikipedia.org/wiki/Nationalism
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