4 days ago
Words for the Ministers of Finance and Commerce to consider - How did China shift from a starving nation to the world's second-largest economy?
IT is necessary to track and understand China's path to economic power. In the first half of the 20th century, China was a deeply impoverished nation, emerging from Japanese colonial occupation and ravaged by civil wars. In 1949, Mao Zedong rose to power and launched what became known as the Long March. He introduced a strict authoritarian regime and a series of poorly planned policies, most notably the 'Great Leap Forward,' which triggered a catastrophic famine that claimed the lives of approximately 15 million people. During Mao Zedong's rule, China was isolated from the world, heavily dependent on agriculture, and plagued by conflicts among various factions within the Communist Party.
Mao later launched the Cultural Revolution, a campaign that resulted in the deaths of hundreds of thousands of citizens. Throughout the 1960s, China was regarded as one of the poorest countries in the world.
A dramatic transformation began in 1978 with the rise of Deng Xiaoping to power, who succeeded Mao and set China on a new economic path. Xiaoping graduated from a French university and was, remarkably, among those sentenced to death during the Cultural Revolution; however, fate had other plans. It is reported that after his graduation, Xiaoping said, 'The common sentiment in China was that our country was weak. We wanted to make it strong, so we traveled to the West and endured the hardships of exile to learn.' Driven by his belief in the need to open up to the world, Xiaoping sought the expertise of foreign minds. He enlisted the help of British doctor of Iraqi origin, Elias Korkis, granting him broad powers, and even empowering him to issue directives to ministers.
The most important elements of China's success were openness, reform, encouraging foreign investment, and gradually loosening state control over the economy. Agricultural communes were dismantled as part of these sweeping changes. This turning point marked the beginning of rapid economic growth, with rates at times exceeding ten percent. By the early 2010s, China had become the world's factory, relying on its vast pool of inexpensive labor and making heavy infrastructure investments to gain entry into the World Trade Organization.
As a result, China's exports soared to $15 trillion within a few years, and its brands flooded global markets. China then moved to diversify its economy, expanding into the world of technology and services. It provided strong support to national companies, prioritized clean energy, and entered the realm of artificial intelligence. Then came the Belt and Road Initiative, a major milestone in China's development, aimed at expanding its global trade influence. This initiative helped propel China's GDP to $19 trillion, accounting for roughly 20 percent of the global economy.
As mentioned earlier, a main figure in building this powerful economy was Elias Korkis, a British national of Iraqi origin. Despite China's vast pool of capabilities and competencies, there was no objection to his leadership. No one demanded his replacement with a 'pure' native Chinese citizen. This Iraqi-born doctor was the driving force behind China's reforms, opening the country's doors to foreign professionals and investors. China has welcomed hundreds of thousands of people from various nationalities to work and thrive. The Chinese are no different from other peoples around the world. They are a diverse mix of tribes and communities, many of whom have become naturalized citizens.
Millions of immigrants own property, run businesses, and contribute to the growth of China, which is a vast and diverse nation with a population of 1.408 billion. The Chinese have no time to waste on repeating naive slogans. Everyone works toward the best interests of their country. In nearly half a century, China transformed into the powerhouse behind this tremendous economy, securing its distinguished position among the world's nations through a clear and focused vision. This is why the world today watches the Chinese experience with amazement and a keen desire to learn.
