The Rise of China: From Isolation to Economic Powerhouse

February 1979: A Historic Visit

• Deng Xiaoping visits the USA, becoming the first Chinese leader to do so after 30 years of isolation.
• China is ready to embrace the world economically.

China's Population and Global Influence

• Population: 1.4 billion people, more than several continents combined.
• Mega Cities: Nearly 16% of the population lives in 15 mega cities (over 10 million each).
• Economic Contribution: China accounts for 18.6% of global GDP, exporting significant percentages of electronics and consumer goods.

Historical Context: WWII and Civil War

• China and the USA were allies against Japan during WWII.
• Post-war civil war between U.S.-backed nationalists and Mao Zedong's communists.
• Establishment of the People's Republic of China (1949): Mao's vision of a self-reliant communist state.

The Mao Era and Its Challenges

• Mao's policies led to mass famine and economic instability.
• The economy was isolated and suffered greatly during the 1960s.

Opening Up: Nixon’s Visit and Aftermath

• 1970s Shift: Nixon visits China, aiming to re-establish ties amid a rift with the Soviet Union.
• Mao's death in 1976 leads to a shift in leadership with Deng Xiaoping.

Economic Reforms and Special Economic Zones (SEZs)

• Deng Xiaoping's Policies: Emphasized economic reform and opening to foreign investments.
• Establishment of SEZs allowed for capitalist practices within a communist system, attracting foreign business.
• Example: Shenzhen's transformation from a fishing village to a city of 12 million.

Economic Growth and Challenges

• Between 1980-1990, China's economy nearly doubles but still lags behind the U.S.
• 1989 Tiananmen Square Protests: Calls for democracy met with military suppression (Tiananmen Square Massacre).

Counterfeit Culture and Trade Relations

• Rapid economic growth leads to a rise in counterfeit goods.
• China desires entry into the World Trade Organization (WTO), facing demands to control counterfeiting.

Late 1990s Economic Expansion

• China’s economy reaches $1 trillion in 1998, but still trails the U.S.
• U.S. supports China's WTO entry with hopes of political liberalization.

2008 Economic Crisis

• Global economic downturn impacts China, but state intervention minimizes damage.
• China shifts focus to domestic consumption, proving resilient.

The Belt and Road Initiative

• Under Xi Jinping, China invests over $1 trillion in infrastructure globally.
• Aims to enhance economic influence and connectivity, raising concerns in the West about potential dominance.

Future Outlook

• By 2018, China's economy is closing in on the U.S., projected to surpass it by 2025.
• Questions arise about the long-term sustainability of China’s model and potential public demands for political change.