The following table shows the top 5 companies with the highest manufacturing output in 2018, extracted from the same Brookings report: CountryĪ Closer Look at China’s Special Economic Zones In a 2018 report by Brookings, China is the world leader in terms of manufacturing output. This is why big companies such as Apple and Adidas choose to manufacture there and why Amazon sellers import from these Chinese cities. These zones fueled China’s economy and were the tools used for the conversion of the country from economically closed to export-oriented.īecause of the generally low wages given to Chinese factory workers, China quickly became known as the workshop of the world. Business owners were even allowed to build their own infrastructures without the approval of the central government. The SEZs attracted foreign investors by giving them tax and business incentives. If any of these places sound familiar to you, that’s because you’re probably importing from one of these cities. These places were chosen because of their location-they are coastal cities. But the biggest change of all was the establishment of Special Economic Zones (SEZs) in Shenzhen, Shantou, Zhuhai, and Xiamen. State-owned enterprises were also privatized. In 1979, the People’s Bank of China was separated from the Ministry of Finance. Establishment of Special Economic ZonesĪlthough the Republic of China was still a communist country led by the Communist Party, Deng Xiaoping introduced changes that don’t exactly fit the definition of the political theory. He used Taiwan, South Korea, and Singapore as models in creating his reforms. It was during Deng’s leadership that a tax system was created in China. However, it did not stop the Sino-US diplomatic relations from being established. His visit to the United States was met with a lot of resistance, even leading to an attempted assassination by the Ku Klux Klan (KKK). In 1979, Deng visited the United States, signaling that China has once again opened its doors to diplomatic relations. China emerged from its economic slumber and slowly rose to stability. The Giant Awakenedīonaparte’s prophecy was realized during the time of Deng Xiaoping. He made a couple of important changes in the system that resulted in the rise of China from a country whose people suffered from famine to having one of the biggest economies in the world. While he didn’t completely abandon Maoism (the Marxism-Leninism variety of Chairman Mao), Deng Xiaoping incorporated elements of the free enterprise system throughout his leadership. Deng Xiaoping is regarded as the leader that started China’s economic rise to success. He led China into what it is today through his economic reforms. Most noteworthy of all was Deng Xiaoping. When Mao Zedong died in 1976, new leaders of the Communist Party started to emerge. Deng Xiaoping: The Architect of Modern China Literacy improved because of the establishment of village schools, and the so-called barefoot doctors were employed in rural areas. However, there were still some positive things that happened because of Mao’s program (if you’re willing to look past the greatest non-wartime killing in history). The five-year program was shortened to two. Needless to say, the Great Leap Forward was a massive failure. His unfounded optimism led to the utilization of unproven agricultural techniques and an unprecedented migration to urban areas that brought famine to the country. Mao Zedong’s Great Leap Forward program resulted in millions of deaths through famine and execution.īecause Mao was so keen on developing industrialization in China to compete with the West, he ordered a largely agricultural population to work in factories, with some left to work in communes. The Chinese Communist Party (CCP) launched the Great Leap Forward, a five-year social and economic campaign that led to the deaths of millions through starvation and execution. Under the leadership of Chairman Mao, the People’s Republic of China was established. Communists, with the former led by Chiang Kai-shek and the latter by Mao Zedong.Īt the time, Chiang Kai-shek was on his way to overthrow the government in Beijing, but with the help of hundreds of millions of peasants who supported Mao Zedong, his army was able to take control of the country.
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