How Did The Economy Of China Become Among The World’s Leading Economies?

[Shahjehansoomro]

They say we can not make the economy of any country as the world’s best economy until and unless we take the revolutionary steps to strengthen it.

It’s true because China is one who not only brought a revolution in the country but also succeeded in making its economy as the world’s most leading economy. Most importantly the situation must remain consistent in the country for long term in order to get prominent achievements of the economy.

Forty years ago, at a meeting of top Communist Party officials in Beijing, Deng Xiaoping began the process of turning China into a market-driven economy. Millions of people became factory workers and entrepreneurs, building a manufacturing powerhouse that lifted some 700 million people out of poverty.

In addition, China established its economy structure in two stages. The first stage, in the late 1970s and early 1980s, involved the de-collectivisation of agriculture, the opening up of the country to foreign investment, and permission for entrepreneurs to start businesses. However, most industry remained state-owned.

The second stage of reform, in the late 1980s and 1990s, involved the privatisation and contracting out of much state-owned industry and the lifting of price controls, protectionist policies, and regulations, although state monopolies in sectors such as banking and petroleum remained.

Shenzhen becomes the nation’s first special economic zone (SEZ) in May 1980, in an effort to leverage the investment and technological strength of neighbouring Hong Kong. Within four years there were a string of more than a dozen SEZs all the way along China’s coast, from Beihai in the south to Dalian in the northeast.

China opened its first communist-era stock exchange in Shanghai in November 1990, restarting formal share dealing in the city after a 41-year hiatus.

The British colony of Hong Kong returned to Chinese rule on July 1, 1997, five months after Deng’s death.

After years of negotiations, China joined the World Trade Organization (WTO) in November 2001. European Union Trade Commissioner Pascal Lamy, met with China’s Trade Minister Shi Guangsheng after signing a bilateral trade deal in Beijing on May 20, 2000, removing the last major obstacle to China’s entry into the WTO.

In the wake of the global financial crisis, China’s government announced $586 billion in stimulus in November 2008. Over the months ahead, the downturn in China’s export-driven manufacturers puts some 20 million migrant workers out of a job.

China becomes the world’s largest maker of automobiles by annual production in December 2009, overtaking Japan. China now makes more autos than the U.S. Japan and Germany combined. Within two years China would also overtake Japan as the world’s second-biggest economy.

On a visit to Kazakhstan in September 2013, President Xi announced China’s intention to create a New Silk Road that would link trading nations along the ancient trade routes to Europe. Over the following years, the plan developed into an initiative worth hundreds of billions of dollars. Renamed the Belt and Road Initiative, it involves more than 100 countries.

China–Pakistan Economic Corridor (CPEC)
is a collection of infrastructure projects that are currently under construction throughout Pakistan. Originally valued at $46 billion, the value of CPEC projects is worth $62 billion as of 2017. CPEC is intended to rapidly modernize Pakistani infrastructure and strengthen its economy by the construction of modern transportation networks, numerous energy projects, and special economic zones. On 13 November 2016, CPEC became partly operational when Chinese cargo was transported overland to Gwadar Port for onward maritime shipment to Africa and West Asia. while some major power projects were commissioned by late 2017.

Chinese President Xi Jinping has officially opened the world’s longest sea crossing bridge in Oct 2018, nine years after construction first began. Including its access roads, the bridge spans 55km (34 miles), which crosses Pearl River Delta to link Hong Kong to Macau and the mainland Chinese city of Zhuhai. The Pearl River Delta, which includes the financial center of semiautonomous Hong Kong, the tech hub of Shenzhen and manufacturing areas in several other mainland cities, including Dongguan, is a powerful economic engine for China. That status was bolstered by transportation projects like a highway linking the eastern cities in the 1990s.

China is number one on the list for having the most natural resources estimated to be worth $23 trillion. Ninety percent of resources are coal and rare earth metals. However, timber is another major natural resource of China. Other resources that China produces are antimony, coal, gold, graphite, lead, molybdenum, phosphates, tin, tungsten, vanadium and zinc. China is the world’s second largest producer of bauxite, cobalt, copper, manganese and silver. It also has chromium, gem diamond and timber.

China recently announced opening its exports to the worldwide officially in Nov 2018.
In 2017, the U.S. economy, in terms of gross domestic product GDP per capita(PPP) was at $19.39 trillion while the Chinese economy was measured at $23.16 trillion.

In 2018, China’s economy grew at its slowest pace in nearly 30 years. The GDP per capita(PPP) Of China in 2018 was $17.9 trillion whereas GDP per capita(PPP) Of US was $20.5 trillion.