Transcript for:
Deng Xiaoping and China's Economic Reforms

[Music] Deng XiaoPing Was a Great Man He fought a great revolution He succeeded in revolutionizing his country And when I saw him He experienced prolonged suffering But had the courage to say “no, we can change things” “let's learn to change things” “And stop trying "So they started importing and buying Boeing 707s. Then they bought iron weapons instead of trying to produce their own fighter planes. Maybe they can change things. But it will take 2 to 3 generations. That's how we, Singapore, succeeded because we have an open mind and goals. Same thing Hello guys, are you curious about why China has been under constant attack since yesterday by the United States government? In fact, they are being charged crazy tax rates of more than 200% on imported goods or goods exported from China to the United States. How come it seems that the United States is so opposed to the production of industries in China? Why are they so afraid? And how is it possible that a country like China can become a powerful country and is now number two in power in the world? If you are curious, don't discard this video and let's Check This Out [Music] By the way, friends, are you curious? Before we talk about China's success story, we need to first discuss the beginning of its history. In fact, not everything is as beautiful as what you see before your eyes. Why, because in 1958 China This area was once hit by an extraordinary case of famine. As a result of what happened, there were many crop failures everywhere, drought and many people starved and died and so many people died, they had to be cannibals, so there were many cases where babies were eaten by people. Their own parents were fought over in the villages, even to the point that old people who were thought to no longer be able to fight anymore were cut into pieces to eat together. The incident was so sad in 1988 to 1962 that it was estimated that 40 million people in China died and it was horrifying. You know, almost 10% of China's population at that time, which was 500 million, and what was the result of the government's program called Great Lip Forward, one of the programs of which was to eradicate sparrows? How come the revolution in China started when the rule of the Ching dynasty ended and the republican system began? So for more than 4 millennia, China was under the rule of the last dynasty, the Ching Dynasty, which collapsed in 1912 and was followed by the founding of the Republic of China. Well, only then, in 1949, the Chinese communist revolution occurred which proclaimed the founding of the People's Republic of China at that time. rce Now that it has become the People's Republic of China, China again experienced a major revolution in 1949, known as the Chinese communist revolution. This revolution was led by Mao Chetung, chairman of the Chinese Communist Party or CCP at that time , during the reign of Ma Cetung, China's first president. more than 40 million people died due to severe starvation because of the Great Le Forward policy. What does this mean? Under the Maetung government, ownership of property, assets related to property, such as land or agricultural land, buildings, actually all belong to the state, so they are owned by individuals, such as You are a trader or you are a businessman or you are a landlord, you are treated as if you are a criminal. Why is it because they follow a communist system? So everything is centralized in the style of the Soviet Union, including from an economic perspective or in other words, the state monopolizes the market. Well, here we want to start launching a program called the great lip forward or long leap forward which started in 1958 and ended in 1962, this program was designed to make China an industrial power country but unfortunately it turned out that along the way they actually destroyed their agricultural sector which then created mass starvation where Many people moved from areas previously known as food producers, they were forced to move away from agriculture and into heavy industry in 1966 and even created a new program called cultural Revolution or cultural revolution where more and more people died and this continued until death in 1976. So what needs to be noted here is actually the first event. Yes, before we get into the cultural revolution, we want to discuss what the great lep forward is about. Mset China that it's true that we have to move to focus on Agriculture or agriculture, we have to be able to become an industrial country, just like Europe, just like America, they can be successful. Why is it because there is an industrial revolution and here we want to have a plan, in my opinion, it's good, but it's a shame, yes? Why is his planning and his approach problematic? Because you can imagine , people who were used to working for thousands of years, suddenly being asked to become factory workers, suddenly having to carry out mechanization, suddenly going straight into the industrial era, the leap is too far, great lep Forward this, yes, Dit is in the middle of creating a lot of starvation, death everywhere , which could actually be avoided. Why, because this is a state program , so here we can see that choosing the wrong president, in this case, want to cetung, can actually result in the death of so many people? Yes, yes, because he wants to, he has high goals, he wants to beat the United States , so he wants to be, so he brings China to become the number one country in the world, not number two, not number, not directly making high goals. China must beat the United States and this is His vision and mission is to create a communist version of heaven, that's why he remains adamant, even though he has been told that many of his advisors have failed, many have died, let's revise this program, or not, this is the main program, we have to be successful, so the horse's glasses, so this agenda starts from the ideals- The goal is to transition from a country based on agriculture or farming to an industrial country. Well, one of the things that can be done is that the number of workers or people in agriculture must be reduced, they must move to factories, at the same time the level of productivity in agriculture must be increased, so this is then This created problems because then he used Li's method, a Soviet style approach with Soviet Union style guidebooks which didn't make sense. One example is that in the Soviet Union agricultural guidebook, the planting method must be very dense. The reason is that in 1 hectare there are more than 1 hectare. If we plant rice or wheat close together, the stems and roots can support each other so they don't fall easily in the wind because they are close together and people are also advised to digging up to 3 m deeper to make the plant root system stronger turns out P happens guys, this kind of farming method turns out to destroy hectares of agricultural land and causes crop failures everywhere so from what used to be slang it was to create more produce more foodstuffs with fewer farmers, but in the end, crops fail everywhere, which is even crazier, doesn't it just stop there, does it want to bring China into the era of industrialization quickly and he wants his country to be independent, so he doesn't want to import iron anymore? steel and machines. As a result, he forced his people to create many steel smelting factories. So what did the farmers do? The people were forced to look for iron, including hoes, agricultural tools, to be melted down into steel that could be used to build buildings. China's factories and industrial machines and each family is counted. You were given a quota. How many tons of steel have you given to the factories in China? As a result, they were forced to search here and there, they melted down so much, even the relatives of their own houses including for the kitchen pans themselves, the agricultural equipment that we mentioned earlier was to be handed over to the Chinese government and was converted into industrial equipment. Well, the result is that in just a few years this great lep forward program has created so much environmental damage in China and the mini scale smelting factories that required in These houses cause what you call it to melt something down, you need a lot of trees and wood, so more and more trees are cut down, so there's a lot of illegal logging for what is used as fuel for the iron smelter? What's the result? What's more, flood erosion? and environmental damage everywhere, this farming strategy, which was very tight and dug very deep, resulted in the loss of top soil and resulted in the loss of nutrients in agricultural lands, which consequently resulted in erosion, as a result, it only took one season, the first spring in the program. The great lep forward in 1958 resulted in crop failures everywhere. What was even worse was that so many farmers were moved from their villages to go work in steel industry factories which resulted in not enough people in the fields to harvest. The result of the previous harvest was that in the end, there was more food or grain, including wheat, grains that rotted in the field, well, one of the interesting things about this Greed lip forward program is the sparrow slaughter program, OK? So for friends who haven't actually know this. One of the things that causes crop failures also happens everywhere, like that, he made a revolutionary policy, he created that Hey, if we reduce the number of people in Kebon, at the same time we also have to increase production in Kebon. What should we do? we do it, we slaughter it, we eradicate the pests in agriculture. He then identified four pests that must be eradicated, the first, there are rats , mosquitoes, and flies, the last is sparrows or sparrows. Well, if we look at the first three pests, yes, rats, flies are the same. Mosquitoes are indeed pests, yes, for reasons of cleanliness and health, we have to eradicate them. They are dangerous. In Europe, the population was almost wiped out because of the plague disease which was carried by rats, so China then decided to eradicate these four pests as a big obligation. So, of these four pests but one last pest is considered to be the pest with the biggest sin in China, namely the sparrow. Why is it because the sparrow eats seeds, its name is also a bird, so it eats seeds and according to its wishes Hey, only humans have the right to eat seeds, so birds These sparrows, these sparrows, are the enemy that we have to eradicate, guys, then he made a massive program, the peasants were obliged to slaughter sparrows, they were even given a quota, you were given a target, you had to kill 200 birds, yes, today is the proof. So they then eradicated and searched for sparrows so massively that sparrows became extinct in China and at this moment China was forced to import sparrows from Indonesia, one of them had to import them, why did it happen like that? What was the connection, guys, when it came to sparrows? It was massacred massively. One thing that Mau Zedong forgot about. Or Mau Cetung is that the sparrow's food isn't just grain, you know, it's not just rice or wheat, but it also eats insects in the field. Yes, if you 've ever farmed, there are lots of kinds of insects. not just mosquitoes or not , but yes, there are butterflies, greyek, beetles and so on that have finished off their hobby, some eat stems, some like eating roots, some eat seeds. So there are so many types of insects that are destructive in agriculture , but when it comes to natural predators the name of the sparrow was wiped out as a result, the more the population of these insects multiplied because there were no longer any natural enemies, so the great lep forward program then resulted in an explosion in the population of leafhoppers, crickets, grasshoppers, insects, flies, butterflies, which were very massive in attacking the land. agriculture in China itself. So you can imagine that the number of people working in the fields has decreased, but the number of pests has actually increased, wow, it's scary, guys , so don't be surprised when 40 million people die because of the wrong policy. You imagine, the wrong policy can make 40 million people die . There was no war. There were no missiles, no nukes. Nothing The shooting wasn't because the president signed this order. We are carrying out this program by all means. 4 million people died. You can imagine what happened in Indonesia, but guys, everything always has an ending, including dictators like that who want to, can eventually meet their end, so It turns out he can die too, yes it turns out he is still human. He then died in 1976 and then a new leader was born whose name was Deng Xiaoping and this is good news for China, why yes, because Deng Xiaoping turned out to be very modern, in my opinion, very advanced in his mindset and not ashamed to learned from other countries that were more successful than him, so he then opened a new approach, that previously he thought everything had to be centralized, as if the central government was smarter than regional governments, as if the central government was smarter than businessmen and traders who were economic actors. If there is a country that agrees with it or not, it's the same as it already is, yes, the government is slower, unresponsive, maybe it doesn't even have any participation. It doesn't feel like the country is present, so then and ready to think, Eh, what if our economic approach is not from the perspective of an official state leader, what if? Our economic approach is to take a market-based approach, so it's a market-oriented economic system, so it's an economic system that's based on the needs of the community, not what the president said. It looks like next year will be good for the R00 million porang business. Indonesian people are told to plant porang. No, he's market-oriented. What goods do the market need? Oh tomatoes, but tomatoes only have 7 hectares. Yes, the plant is 7 hectares, it doesn't need 7,000 hectares, so in my opinion his approach makes sense, it's logical, look at the market, no matter what size, so that's what he did. Second, he brought about change in the CCP and also became the Communist Party. China Previously, the emphasis was always about class, namely communists, yes, sir, the struggle between the lower economic class, the proletariat, and the upper economic class, who are corrupt, the merchant class, the peasant class, the civil servant class, the bureaucrats, fought with the working class, so it was always about the struggling class in the communist era, but By shopping, we have thoughts, so we are tired of talking about your class, the poor class or if it is the class of farmers or businessmen or nobles, never mind, we are communists, the concept is just like this, let's focus on economic development, not focus on the struggle between classes, so communism is not a matter of equality. I don't think it's communist. The version with shopping is that in developed countries the economy must be advanced, so what is done is that all approaches, all government policies are carried out, must be completely based on how we grow the people's economy. That's good communism, it 's not the same, it's just Stalin's style in the sea, but it's communist. what is true according to him is how to revive the people's economy on a massive scale , that's why when in 1979 Deng Xiaoping rose, he created a program called xiaokang . You don't have to be very rich, but moderate, just normal, don't have anything below standard, so he has an idea, we have a vision and mission, Xiaokang, that there aren't people whose lives are too difficult, at least the people in all aspects of their lives, he gets it. prosperity, so this is an ideal that I think is also noble. So, to make this seokang program or massive prosperity that is evenly distributed for all of us, it becomes a reality. What did he do to make modernization targets in four sectors or what people say is for modernization targets or for modernization target so there are four sectors that we must modernize if we want to progress so what are the four sectors that according to shopping we must improve and we must modernize it turns out that according to shopping it is wrong if suddenly we have to jump straight into the industrial era in The first and most important of these four modernization programs is the second agriculture is industry, the third is defense, the fourth is science and technology, so friends here, look at the W gre forward program, we can say that the shopping version is very structured and he knows Oh, we can't enter industry, it's useless if you want to So what if you have factories everywhere but there's nothing you can eat, no one wants to be a farmer, what's the point of doing it? What approach is modernization mandatory? Yes. But before modernizing, the first thing you do is in the Agriculture sector, so then with that much shopping you can create a modernization program. he brought mechanized tractors everywhere, modern water pump irrigation systems, he brought modern agricultural tools, he created them, if necessary, imported them first, then he copied them, made them himself. Well, this then happened, because at this moment, in Indonesia, for example This is the lesson in Indonesia. Until now, I still see a lot of people in these areas farming using buffalo and cows, you imagine, it's already 2024, there will be no modernization in Indonesian agriculture, China in those days with shopping already think Hey, the world's population is increasing over time. lots of bros, come on, let's think about how we can do mechanization. Well, this is what makes shopping so exciting, okay, the number of farmers, we can reduce the number of farmers in the field, first S hectares need one person, now S people can handle 50 hectares using a tractor, right? That's great, right? The rest of the people where can you go to work in a factory Wow, that's great, then you'll enter the second modernization sector, the era of industrialization. Well, after the industry has advanced, they can make their own shoes, their own laptop, their own TV, their own refrigerator, their own air conditioner, then we'll talk about defense, enter the third point, what's the defense, so friends? don't be surprised China can make its own attack helicopters China can make its own missiles China can make its own satellites And it can even make its own aircraft carrier Wis this is really great this is really an extraordinary program from the mindset of shopping and what's the fourth after all we have mastered that. We have to understand and be willing to learn and develop science and technology, so China has really created a structural pattern here. We have to progress. We have to become the greatest country in the world and we have to prosper together by focusing on these four sectors and their knowledge. Where did you get it from? By the way, it turns out that Deng it turns out he learned from Singapore, friends, if you know, Democracy is Singapore, yes, it's a la la democracy, the party that wins, pay in pay , paynpay paynp, continues to pay, pays, continues to pay, PH, yes, the gang continues to liquinu, but what's going on, China's economy is bad. What's bad turns out to be good and that's what Deng Shoping copied, it could also be that the country is authoritarian but at the same time the economy can be liberal, it can be based on the market and can be developed, so he's not ashamed and he admits that he learned from Li Kuanu, this is extraordinary. So friends, don't be surprised, in the era of Deng Shopping's leadership, what did he do? He sent 22,000 people to study to Singapore, he flew that and these are all civil servants, he sent 22,000 civil servants to study in Singapore. How do you make regulations that can make people are passionate about becoming entrepreneurs. How do we make regulations that can grow the community's economy and thirdly, how do we lead these people so that they don't realize that we can secretly control them without having to be oppressive? What do you mean by playing rough? You don't see that in Singapore, almost There were no demonstrations, there weren't even demonstrations , but the people didn't feel like they were being pressured or living in an era of dictatorship, right? Well, that's the leadership style that Din Shoping wants to adopt. How can we be authoritarian? We can control people without playing rough. Well, that's what he wants. learned that from Singapore, so don't be surprised that China succeeded in doing what it did sing, but on a large scale, well, one thing that's interesting about the shopping economic approach to Chinese agriculture, remember, of the four targets of modernization, number one is agriculture. He learned a very good concept from Singapore, that is, he proved that the agricultural system can only progress if we can provide incentives to farmers to plant better and produce more, so he introduced a two-day system, what does that mean, for example, in his case in Indonesia, friends, you know that the price of bucklock is just flat, L, if the price of grain is 3,000 a kilo. 3,000 a kilo, flat one price, that's the system used in China in the ancient era where dinosaurs were still rampant, yes, it's still used with bulok, well in China it's revolutionary and shopping, learning from Singapore, they made a two-Tir system based on quotas, so the first Tir is like this if in Farmers can only produce 6 tons per hectare of rice, you can produce 6 years per hectare. OK, I set the price of grain at 3,000 per kilo, okay, that's the first Tir , well, the second Tir, if your rice production is above 6 tons, let's say you managed to score 9 There's a difference of 3 tons in those 3 tons. These 3 tons were bought by the state at double the price, IDR 6,000 per kilo, so this makes farmers there compete to get more than 6 tons into production, so the contents will be priced more expensively. In the past, no matter how much I made, 10 tons per hectare, 20 tons per hectare, he only bought it for R3,000, so people weren't enthusiastic about planting. Bro, China has seen this model. OK, let's use the economic theory that people will move if there is an incentive. economic theory but he doesn't want to make the set open, there's no Tir, whatever you print, I'll give you a price of IDR 6,000. No, he's making a quota system because if he suddenly opens the market, what happens is that the market can call laps, it can destroy the existing economic order. I've been working there all this time, starting from farmers, middlemen, distributors and so on, so he made a quota of Rp. 3,000 up to 6 tons. Above 6 tons, the price was doubled, so this is the result of what happened, guys, this revolution is magic, this is a miracle created by Deng. During Deng Xiaoping's reign, the agricultural sector in China greatly increased and made its economy successful again, in fact it only took 10 years from 1975 to 1985, China's agricultural production grew by more than 25%, so friends, imagine when this agricultural reform will begin. By Xiaoping in the 1970s, food supplies and food production were actually very, very lacking and even the government there started to panic, lest the tragedy in 1958 in 1959 in the GP lep forward era would happen again. 40 Millions of people died, but by being able to take quick steps, do you want to or not? I told you earlier that at the beginning, what was the state's intention to do, was the land owned by the state, what did he do, did he immediately take quick action, the land was redistributed back to the people, so from what Previously, all the land belonged to the state, what was done by Shopping, what did he distribute, he gave the land to the people, but with the promise that if you planted, some of your produce belonged to the state. I gave this land back to you so that you could plant. You understand more about the state's way of planting. I don't understand how to plant, but you have been a farmer for years, planting properly, planting well, but the results of your farming will be sold to the state. Well, from this method of land distribution, what are the consequences, right? The production of agricultural land is getting better, people are increasingly racing to become farmers. with the highest productivity and the most efficiency and as a result, does the country have a model? What model is this model of business privatization for China's economic progress? This is a good example that with what Oh, by dividing land, the country doesn't become poor, it turns out the country becomes richer, so they can become have the capital to become what, yes, the first exporter of foodstuffs, the second, can enter the era of industrialization, yes, because of how innovative shopping is, in 1979 he made a new law that allows investment to enter. foreign capital in the form of a joint venture between a local company in China and a foreign company, they can create a joint venture company, why do business in China? Well, with this regulation, China becomes more attractive for foreign capital which can bring in money and bring technology from the country. -developed countries, such as the United States , countries in Europe, are increasingly eager to invest in China with the aim of being able to export their production later from factories in China to US countries at lower economic costs because labor is also still Land is also cheap, which in the end can contribute to China's economic growth, so here we can learn a lesson, guys, that we can't be antipathetic or too anti-foreign investment because China is in the early days of developing its economy. Their countries also need technological expertise from foreign companies and secondly they also need foreign capital. Well, with them, they have a lot of foreign capital, so they can get market access and what's the point of exporting their production to those countries? Yes, the United States is making a big investment. The big scale in China is to build a factory, of course he wants it. Yes, China can also export to other countries. This is a clever method, but unfortunately, China's economic growth was so massive in the Deng Xiaoping era in the 1980s. The economy flourished. It turns out so did corruption and this. what causes corruption to be so massive everywhere, even if people want to invest in China, they have to bribe them , they have to pay tribute, many people even ask for shares, as well as regional leaders, regents, governors who are there, so that investors can get land instead of factories. Yes, they have to pay tribute or give shares. Well, this then creates a lot of people who don't like the increasingly massive acts of corruption in China and the consequences. Do you know for yourself that there are a lot of corrupt people looking for easy money? What is happening is this is creating inflation where -where Why, because when they get corrupt, suddenly they suddenly become rich, what does he do, he buys a house, he buys land, he buys a luxury car, he can flex everywhere, well, this is the same case as in Indonesia, friends, did you know before the KPK existed? That's why the price of land in Bali has gone up like crazy, why are there so many corruptors in Indonesia? What's the investment? Do you want to buy a villa in Bali? Buy land in Bali. As a result, the value of land in Bali has skyrocketed. Friends from Bali definitely know about this, but then After the birth of the Corruption Eradication Commission (KPK), what happened was that the increase in property prices in Bali was no longer as attractive as before, why is that because there is less and less illicit money or illegal money that can be obtained easily, it is increasingly difficult to obtain illicit money, especially now that there is a tracking system again? If you buy land, you've already found out where the money comes from. Where do you run to pay the taxes? How do people find it increasingly difficult to launder money, well, just like in China, when corruption is massive everywhere, what's happening? Yes, like in Bali, land price inflation is increasing over time. Well, because corruption has occurred so massively everywhere, many people are disappointed and feel that they are tired of working, yes, paying taxes for the state, but the money is actually being used for corruption by officials, they are also making massive mass demonstrations. And this is what is known as Where was the Tianan Men incident ? Many young people at that time were students, yes, the people who demonstrated at the Tianan Man Squad in 1989. Then it turned out that it resulted in riots and many died. Well, this, friends, remembers the incident in Indonesia itself, more or less the same. because they were dissatisfied with the economic situation in Indonesia in 1998, plus the massive corruption carried out by the central government at that time in Indonesia, as a result, there was a big demonstration in 1998 and many people died , so this big demonstration in Tiananmen then created yes, it was a black spot in Chinese history and at that time many said this could damage the reform programs planned by Deng Xiaoping but Deng Xiaoping is still adamant, yes, he is still adamant that we have to reform, so what did he do, the people who had the same ideas for reform were arrested, guys, some of them were sent to prison, some of them were sent to be thrown abroad, so they could run the program. This Deng Xoping -style reform , but as he goes along, he has also started to clean up the corruptors in China, the little kings in the regions, the officials who act as Emperors, he has started to clean up everywhere, including in the Chinese Communist Party itself. because Deng Siapung is a very firm person, yes, he is very opinionated and he is very focused on improving the economy of the Chinese people, even though there was the Tiananmen incident, yes, he remains focused on his reform hand and then he succeeded in opening the Shanghai Stock Exchange or Shanghai stock exchange which had previously been closed at will. why, because there are no more investors who want to make transactions there. So 40 years before it was opened by Deng Shopping in 1990. 40 years before that in 1950 it was closed by Mauetung, but apparently Deng Shopping succeeded in increasing the confidence of investors both domestically and abroad. Because he succeeded in managing his reforms so that many investors began to be interested in investing in the Shanghai Stock Exchange, so the success of landeng shopping continued until finally in 1999 China managed to surpass Japan as the country with the second largest economy in the world even though it had died in 1997. but the reforms he carried out were successfully continued by his successors, namely Jang Zemin and Zu Rongji. So they all adhered to Deng Xiaoping's school and fortunately, before Deng Xiaoping left this world, he had time to teach his knowledge to the number two person in China named Chenyun. So Chenyun is an advisor to Deng Shopping's successors. What are the main reform activities carried out in certain sectors, mainly related to State-Owned Enterprises? What do you mean by that, in 1997 and 1998, there was privatization of business on a large scale, so many businesses- businesses that were previously managed by the state in the form of state-owned enterprises, such as Indonesia, were no longer selling their businesses to the private sector, except for certain sectors, so many businesses were closed and their assets were sold to private companies or investors, so what was the result between 2001 and 2004, the number of state-owned state-owned companies it was reduced by almost 50%. and at the same time the successors of shopping also succeeded in reducing import costs, one of which was regulations that hampered free market activities and they also reformed the banking system and many of them also closed or abolished the social welfare system created by Mau Cetung and Salah. One of the most revolutionary things, the successors of Deng Shopping, succeeded in forcing the Chinese national army, which was called PLA at that time, to no longer do business. So they forbade the military to do business. As a result, they succeeded in reducing corruption, they succeeded in reducing inflation, and China succeeded in joining the World Trade Organization or WTO. It's just that the actions of the administrators with shpping cannot be accepted by all levels of society. Why is it because many community groups, especially those who were fired from this BUMN, were then laid off and they couldn't join in working at other companies? They are used to working casually at state-owned BUMNs. that and when these BUMNs were privatized into private companies, yes, they weren't ready to fight, they weren't ready to work, they were used to sitting back and relaxing and getting a salary every month, but that's okay, reform is always everywhere and here we can learn a lesson for Indonesia. If you want to copy and paste China's success story, the country must be brave enough to fight corruption. Leaders must also set an example of not being corrupt. Secondly , the state must also be brave enough to stretch so that the army doesn't get involved in business and thirdly, the state must also be able to control things. It's called inflation, so according to you, Indonesia has reached the stage or not Yes, that's already like China. Not yet why, because with this method China succeeded in increasing its GDP to the extreme, guys. What proof is this? In 2005 alone, the private sector contributed more than 50% of China's GDP and this continues to increase, becoming a private contribution to the economy. China has contributed more than state-owned companies. So don't be surprised if China can finally crush Japan, which at that time was the country with the largest economy in Asia, although some of the country's monopolies still apply, for example in sectors related to oil and banking, so from here we You can see the method of privatizing SOEs in China, that SOEs should really be eliminated, don't have too many because what happens is that the state competes with the private sector and yes, friends, you know that SOEs are not always more efficient, more effective, smarter, better. in working compared to private companies. Because private companies, obviously there are set KPIs, you don't achieve, you are cut off, but in state-owned companies, it's not like that, they are usually more relaxed, well, this is what shopping is afraid of, that's why he wants that country. just be more involved in important activities, yes, what was the banking business and the oil business, that's it, it's okay to use BMN and this has resulted in such fierce competition in China, the competition is very extreme, people are competing to be more If you don't get ahead, what do you think, people are competing to have insiders so they can work in the civil service so they can work in state-owned companies, isn't that a wrong mindset? Well, China doesn't want this, it wants its private sector to progress, according to me, this has to be imitated. we have to imitate, we have to be brave, that the country is supposed to care for and educate and stimulate its people to want to do business, to want to try, but there is one thing, guys, that is interesting about this Chinese incident, is that they didn't fall into a trap, friends, did you know that in the past? It was predicted that China would not be the one who would beat the United States, but Nixon once said that the next Champion would be Japan. China is very close to Japan. Russia is very close to Japan. Japan is today and will be for the next 25 To 50 Years the real big Japan. It will become the ruler of the world, it won't be able to race. The United States was predicted, but it turns out that what China is doing is shaking up the world. People don't think that China could be greater than poverty and we want to make a video. Actually, this is related to the Plaza Accord, that is one of the reasons. Why did Japan fail in the middle of the road and then its economy stagnated? Well, if you are interested, don't we discuss the trap created by the United States because they were jealous, they were afraid of China's massive economic development so they forced Japan to sign an agreement. which is actually detrimental to the Japanese economy, called the Plaza Accord, if you are curious, comment below so we can make a follow-up video, so back to China, it turns out, long before China was as developed as it is now, they had created a scenario that, what if this shopping reform was successful ? What if China's economy is really advanced? Then what if we fall into Japan's trap? Turns out China is really smart, guys. Do you know that the regulators in China are actually taking lessons from Japan's economic history because they don't want this Panda Country to be trapped in a recession and deflation? This has been happening in the country of Sakura for the last 20 years, so Beijing considers that Tokyo's steps to liberalize capital flows and the Yen for more than 30 years caused the creation of an asset bubble in Japan in the early 1990s. Well, this has also been expressed by the Japanese government, here are some civil servants in Japan I have met several professors and doctors who I also happened to chat with. Er, my college friends also when I studied in the Netherlands I often asked them why China doesn't fall into the trap that Japan did. What do you mean by being trapped? So it turns out that before China succeeded in becoming the country with the largest economy in Asia, they had sent many of their spies to Japan to collect information for surveys for research. How to prevent China from falling into Japan's economic trap, which is even more unique, they used Charlie's approach. Manger, you may have heard my video about planes being hit by fire in the Second World War because Charlie Manger used to work for the United States Air Force in World War I. Well, there he said, don't we have to learn from Success Stories, but we have to learn? from the mistake, well, this was done by China when China sent intelligence. Their officers to interview them took data from officials from civil servants in Japan from bureaucrats in Japan. They didn't ask the secret of your success. They asked what mistakes you made so that Japan had a recession. so Japan stagnated so China wasn't interested in Japan's success. Story they were more interested in Japan's mistakes so they could learn from them so they wouldn't fall into the same trap hole experienced by Japan. Why did he take that as an example because he said yes, the Japanese economy and the economy It turns out that China has many similarities. Yes, friends, of course you already know about the ancient Japanese economy as well as agriculture, that's why in ancient Japan, you were considered rich, it was how many koku you could get, so that was the benchmark. G one koku means how much rice. what you need in 1 year so one koku can feed one human being in 1 year so if you have 10,000 soldiers your army is feudal you have to have 10,000 koku so how many koku you have is proof that Japan is an agricultural country You know, it used to be, but now we don't anymore, China sees that similarity, we used to be regulated and assessed our wealth based on the food we had, how much rice we had, because it was needed for war logistics, now we no longer want to enter the Japanese industrial era, Success Story, but we want to learn the story of your failure so China assumes that the Japanese and Chinese economies have many similarities and there are many lessons they can copy and paste from Japan so friends, don't be surprised that as of jly 2024 China will become the country with the second largest economy in the world even beating countries like Germany, Japan, Russia and others. On this glass screen you can see that America's GDP is 28,000 billion dollars. China is 18,000 billion dollars. The distance between China and third place Germany is more than 4 times because Germany can only get 4,500 dollars, friends. You can see this is the gap in the world economy, yes, Germany and China are ranked third and second, the gap is almost four times bigger, but the distance from China to the United States is not even double, you know, so this level is already fierce, guys, the level is already above 10 trillion dollars. Yes, and China managed to successfully climb there, remember, this country started from a country that previously had 40 million people dead, 10% of the population died, but now they have a much bigger economy than Japan, India, England, Germany was merged into one, it's still bigger, China OK? Guys, immediately like, subscribe and share this video with your friends. Immediately write in the comments column below. Do you think we should make a video about the textile business because a lot of shares are in ASG or should we make a video related to the Japanese economy, in this case a sadistic agreement Because of that, the Plaza Accord also has an impact on the world economy and on the government. Hopefully we can learn lessons from the success story and the sadistic story of China's economic journey. If only China can do it, I think we can also do the same. Hopefully, in the era of the new presidential administration. Only then can they lead us to become a developed country. OK, I hope this video is useful. Healthy greetings, greetings bye ekong tel