Economic Development in China

1. Economic Development in China Koichi Fujita CSEAS, Kyoto University Japan www.AssignmentPoint.com

2. Brief Historyof Modern China (1) • Opium War(1840-42) British imported a lot of commodities (tea, china, silk etc.) from China (Qin Dynasty), but had no major export items, resulting in a large trade deficit. In order to reduce the outflow of silver from British to China, British produced opium in India and tried to export it to China, although China prohibited the import of opium in 1796. A lot of smuggled opium flowed into China, which damaged the health of people, and finally silver also flowed out. In 1839, Qin Dynasty strongly prohibited the import of opium and after that the war between British and Qin Dynasty occurred. In 1842, the war finished with the victory of British, which got a lo of money and Hong Kong. • Sinhai Revolution (Fall of Qing Dynasty) The revolution in 1911 was motivated by anger at corruption in the Qing government, frustration with the government's inability to restrain the interventions of foreign powers. www.AssignmentPoint.com

3. Brief Historyof Modern China (2) • Republic of China In 1913, China announced the first parliamentary elections according to the Provisional constitution. The Kuomintang had the most seats, and Song Jiaoren was designated as the prime minister . But Song was assassinated in Shanghai on 20 March 1913. Yuan Shikai was believed to be behind the assassination. Sun Yat-sen launched a Second Revolution in July 1913, attacking Yuan with armed forces; but Sun Yat-sen was defeated by Yuan. Yuan Shikai later attempted to restore the monarchy, but failed. After Yuan's death, China entered the Warlord Era until 1928. • Invasion of Japan to Manchuria and Sino-Japanese War Japan invaded Manchuria of China in 1931 and occupied it. The Second Sino-Japanese War (1937-1945) was a military conflict fought between the China and the Empire of Japan. China fought Japan with some economic help from Germany, the Soviet Union and the US. www.AssignmentPoint.com

4. Brief Historyof Modern China (3) • After the Japan’s defeat in the World War II in 1945 Civil war between Kuomintang vs. China Communist Party (CCP) (Chiang Kai-shek) (Mao Zedong) CCP was established in 1921 Kuomintang was defeated and fled to Taiwan • Establishment of People’s Republic of China in October 1949 Moderate reform period (but with land reform until 1952 In Sept. 1952, Mao suddenly declared radical movement to communism. First Five-Year Plan (1953-) Confrontation with the Soviet Union since the mid-1950s Second Five-Year Plan (1958-): ‘Great Leap Forward’ Collectivization of agriculture (People’s Commune) Promotion of iron production and other unscientific policies From mass starvation death of 20-50 million peasants www.AssignmentPoint.com

5. Brief Historyof Modern China (4) • Mao lost his position once during the first half of the 1960s • Cultural Revolution (1966-76) Believing that certain liberal bourgeois elements of society continued to threaten the socialist framework, groups of young people known as the Red Guards struggled against authorities at all levels of society. Chaos reigned in many parts of the country, and millions were persecuted. Schools were closed and the young intellectuals living in cities were ordered to the countryside to be ‘re-educated’ by the peasants, where they performed hard manual labor and other works. The Revolution led to the destruction of much of China's traditional cultural heritage and the imprisonment of a huge number of citizens, as well as creating general economic and social chaos in the country. • Diplomatic Relations with Western Countries such as USA and Japan in 1972 www.AssignmentPoint.com

6. Brief Historyof Modern China (5) • Death of Mao in 1976 • Rise of Deng Xiaopin During the Cultural revolution Deng fell out of favor and was forced to retire from all his offices. He was sent to a tractor factory in rural Jiangxi province to work as a regular worker. He was purged nationally, but to a lesser scale than Liu Shaoqi. Deng gradually emerged as the de-facto leader of China in the few years following Mao's death in1976.He launched the ‘Bejing Spring’ which allowed open criticism in 1977. • Economic Reforms since 1978 Four Modernization: agriculture, industry, science and technology, military Towards a socialist market economy Bottom-up approach ⇔ Top-down approach by Mikhail Gorbachev (Perestroika) www.AssignmentPoint.com

7. Brief Historyof Modern China (6) • Agrarian Reforms Dissolution of large communes and introduction of household responsibility system (Equal distribution of farmland to peasants) Raise of agricultural product prices Rapid agricultural development • Rural Industrialization (since the mid-1980s) Local municipalities and provinces were allowed to invest in industries that they considered most profitable, which encouraged investment in light manufacturing. The rural industries grew gradually to export industries. • Rise of Private Manufacturing Sectors in Urban Areas since the 1990s Assisted by FDI www.AssignmentPoint.com

8. Brief Historyof Modern China (7) • Tiananmen Square Massacre in 1989 and the after The Tiananmen Square protests of 1989 culminating in the Tiananmen Square Massacre (referred to in Chinese as the June Fourth Incident) were a series of demonstrations in and near Tiananmen Square in China between 15 April and 4 June 1989. Many socialist government collapsed during the same year. Due to the protest, Deng's power significantly weakened and there was a growing formalist faction opposed to Deng's reforms within the Party. To reassert his economic agenda, in the spring of 1992, Deng made his famous southern tour of China, and used his travels as a method of reasserting his economic policy after his retirement from office. On his tour, Deng made various speeches and generated large local support for his reformist platform. He stressed the importance of economic construction in China, and criticized those who were against further economic and openness reforms. Deng's southern tour aided his reformist allies' climb to the apex of national power, and permanently changed China's direction toward economic development. www.AssignmentPoint.com

9. Characteristics of Economic Development in China • High Agricultural Productivity Base • High Human Capital Base • Egalitarian Income Distribution within Rural/Urban Areas • After the Economic Reforms since 1978 From rural (agricultural) reforms to urban reforms In rural areas, from agricultural development to non-agricultural development since the mid-1980s Gradualism in urban reforms • FDI-led Economic Development since the 1990s Manufacturing factories of the world Expansion of economic disparity between rural/urban and among regions www.AssignmentPoint.com

10. Agricultural Development in China:Rice Production and Yield www.AssignmentPoint.com

11. Education in China Net Enrolment Ratio of Primary Schools Promotion Rate from Primary Schools to Junior Secondary Schools Promotion Rate from Junior Secondary Schools to Senior Secondary Schools Promotion Rate from Senior Secondary Schools to Higher Education www.AssignmentPoint.com

12. GDP Growth Rates in China www.AssignmentPoint.com

13. GDP Share in China www.AssignmentPoint.com

14. FDI-led High Economic Growth in China www.AssignmentPoint.com

15. Deepening Trade Dependency in China www.AssignmentPoint.com

16. Ratio of Urban/Rural Household Expenditure www.AssignmentPoint.com