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China is a country ancient, one of the oldest in the world, having maintained virtually the same boundaries throughout its history. But its current State has only 70 years. On October 1, 1949, after winning the civil war, the Kuomintang party that ran the Government, the communist revolutionary Mao Zedong founded the Republic of China while their enemy, the warlord Chiang Kai-chek, he took refuge in the island of Taiwan. While his Government remains independent and retains ownership of the first Republic of China, founded in 1911 after the abolition of the last imperial dynasty, is only recognized by 15 smaller States, since almost all countries have changed their diplomatic ties by the Beijing regime because of its extraordinary economic boom.
In these seven decades, China has gone from being a feudal State and primitive to become the second economic power on the planet, in gross terms, behind the united States. But his frenzy of growth only came with its opening up to capitalism after the death of the “Great Helmsman” in 1976, as the communism, which freed the peasants, and distributed the lands not brought after more than misery, hunger and death.
“In 1949, China was going through a very difficult situation by the civil war and against the japanese and by the wrong policies of the previous Government, which had left a inflation very high. Eager to change, the people welcomed the Communist Party, which stabilized the economy and took measures very pragmatic collaborating with private companies between the first six and eight years,” analyzed for ABC-Xu Bin, professor of Economics and Finance in the School Chinese-European International Business (CEIBS) in Shanghai. “But after you opened a debate within the Party and in front of the position of leaders such as Liu Shaoqi and Deng Xiaoping, who advocated a mixed economy, has triumphed over the opinion of Mao, who nationalized businesses and imposed a strong collectivization and industrialization as in the Soviet Union,” recalls professor Xu. As he points out, “the State is in charge of everything and achieved social equality, but everybody was poor” .
With tens of millions of deaths by famine of the “Great Leap Forward” (1958-62) and the economy is paralyzed by the “Cultural Revolution” (1966-76), the socialism core of Mao was buried after his death in 1976. Just two years later, the reformist Deng Xiaoping departed to the designated successor, the “Great Helmsman”, Hua Guofeng, and laid the foundations of the “opening and reform” that has caused the biggest transformation in the history of China.
Between 1952 and 2018, the GDP per capita has multipllicado 70, of 119 yuan (15 euros) to 64,000 yuan (8.221 euros).With the economic opening of the country, China has triggered its trade in goods of the 8,73% of GDP in 1960 to 33,97% in 2018. Exports, for their part, have past of 2,571 millions of dollars to 2.49 billion dollars.The demographic expansion has been total. It has grown from 667 million people to to 1.392 million people from 1960 to 2018.
Thanks to this “communism with chinese characteristics”, in reality a wild capitalism controlled by the State and its public companies, the asian giant has grown at an average rate of 10% for two decades and has emerged as the “global factory”, bringing to more than 700 million people out of poverty. Between 1952 and 2018, the Gross domestic Product (GDP) has increased by 174, and the GDP per capita by 70, 119 yuan (15 euros) to 64,000 yuan (8.221 euros). Proud, as well as announcing this week the deputy director of the National Commission for Reform and Development, Ning Jizhe, according to the official newspaper “China Daily”. An achievement that has turned the country not only a superpower, but also in the biggest world trader and the main holder of foreign exchange reserves, as well as in the second international investor thanks to projects pharaonic as their new “Silk roads”.
“In this second phase of the recent history of China, which reached its zenith with the entry into the World Trade Organization (WTO) in 2001, we have become a middle-income country and the per capita GDP will return to bend in 2020”, welcomed professor Xu. But it also warns that China has entered a third phase, more difficult, and by the slowdown of their economy and the trade war with the White House. “There is a change of model, from manufacturing to services and technology, and the trade war is affecting China rather than the US” values the expert. In his opinion, “this is a new era , as says the president Xi Jinping, but problems”. Although professor Xu believes that “will be reached before the end of the year an agreement to serve as a truce in the trade war,” predicts “will the disputes between the two countries because in the West there is a hostility growing with the rise of China, which needs several years to consolidate itself as a technology powerhouse with companies such as Huawei”.
In the midst of these upheavals and with a growth of around 6%, the lowest since the 90’s , Beijing shows its achievements with a series of pomp to commemorate its 70th anniversary, as the newly opened airport in Daxing to the south of the city and a large military parade in Tiananmen square on Tuesday. With the mantra of economic development, the regime “capicomunista” chinese intends to legitimize its authoritarianism and to establish itself as a model for other emerging nations to the decline of the western democracies.
Mao Zedong, 70 years ago, he founded the people’s Republic of China. The country, reference in all the asian world, is already one of the major economic powers at the level of the united States – EFE
