China is known as the world’s second-largest economy, making up 16% of $86 trillion global GDP in nominal terms. However, the People’s The Republic of China faced several struggles during the span of 70 years to reach the top tier.
In the Infographic below, let’s take a comprehensive look at how the PRC came to be!
The Mao Era: 1949 – 1977
Mao Zedong was the first president of China and initiated several changes in the country. Initially, he proposed a five-year plan to increase the country’s industrialization. Steel production also grew during this time along with agriculture output.
A communal farming system was also introduced in 1956. However, it failed to provide the desired results – causing an economic breakdown and the deaths of tens of millions in the Great Chinese Famine.
Mao Zedong made another plan to support the country in 1966 – but another plan backfired causing more deaths and halt in the Chinese economy.
The change begins – 1971
China started seeing a transformation after it replaced Taiwan as a permanent member of the United Nations and one of the five members of the UN Security Council – along with the US, the UK, France, and Russia.
The 37th US president Richard Nixon also came to China opening up diplomatic relations between the two nations.
The country also enforced a ‘one-child policy’ to control the growing population in 1979. The policy was intact for almost 35 years and was relaxed to two children in 2015.
Economical increase – 1980
From the year 1980 onwards, China began to open up to international markets and provided foreigners with tax incentives to attract further investments. And although, there were mixed reactions from the public – the country continued to grow and successfully brought out over 400 million poor people out of poverty between 1981 and 2002.
China’s entry to the World Trade Organization and the Qualified Foreign Institutional Investor (QFII) allowed foreign investors to participate in the country’s stock exchanges – contributing to the growth. It saw a mild economic slowdown during the global financial crisis between 2008 and 2009 but managed to lift itself up after a small hurdle.
Future plans for China include developing road, rail, and sea routes across 152 countries. The project is set to complete by 2049 – just in time for the country’s 100th anniversary.
The country of China completed its 70 years in 2019. Today, let’s reflect on the country’s journey from humble beginnings to a powerhouse on the world’s arena.
Infographic by: Visual Capitalist