Archive | February, 2011

No.1 The huge changes since China’s reform

16 Feb


After the Cultural Revolution, China’s economy was almost corrupted; the financial deficit became more and more terrible. The Gross National Product of China in 1978 was only 362 billion RMB. People still lived in poverty. In addition, after the Cultural Revolution, the ruling party which is Chinese Communist Party lost some public’s supports and people started to doubt its ability of administration. Deng Xiaoping got imperium again, and tried to reform economic system from different sides. He wanted to change China’s economy system from planned economy to market economy. Then he got people’s supports and started his reform.

The Opening-up Policy is a part of Deng’s theory. It is also a guiding principle for China’s socialism construction. It includes changing socialism planning economy to socialism market economy, developing democracy and legal system, completing democratic supervision system. Opening-up Policy mainly means opening for both domestic market and foreign market, and it be seen as the only way for China’s grow up.   

Economic performance since reform

China’s nominal GDP trend from 1952 to 2005. Note the rapid increase since reform in the late 1970’s.

China’s economic growth since the reform has been very rapid, exceeding the East Asian Tigers. Economists estimate China’s GDP growth from 1978 to 2005 at 9.5% a year. Since the beginning of Deng Xiaoping’s reforms, China’s GDP has risen tenfold. The increase in total factor productivity (TFP) was the most important factor, with productivity accounting for 40.1% of the GDP increase, compared with a decline of 13.2% for the period 1957 to 1978 – the height of Maoist policies. For the period 1978-2005, Chinese GDP per capita increased from 2.7% to 15.7% of US GDP per capita, and from 53.7% to 188.5% of Indian GDP per capita. Per capita incomes grew at 6.6% a year. Average wages rose sixfold between 1978 and 2005, while absolute poverty declined from 41% of the population to 5% from 1978 to 2001. Some scholars believed that China’s economic growth has been understated, due to large sectors of the economy not being counted.

Impact on world growth

China is widely seen as an engine of world and regional growth. Surges in Chinese demand account for 50, 44 and 66 percent of export growth of Hong Kong, Japan and Taiwan respectively, and China’s trade deficit with the rest of East Asia helped to revive the economies of Japan and Southeast Asia. Asian leaders view China’s economic growth as an “engine of growth for all Asia”.

Planning economy was being seen as the symbol of socialism.

Perface

16 Feb

 

This blog is opened for my project Chinese society. In my oppinion, China always leaves a mysterious image to western countries. Many people from west countries want to see and learn more information about the mysterious east country. However, becasuse of the diefferent systerms, western media companies usually reported China in subjective way and left some bad images about China for people. I just want to try to introduce and show a real China to people, and let you know a real and objective China.