China's 40 years of reform that turned it into a superpower | ABC News

ABC News (Australia)

29 Nov 201803:23

Summary

TLDRIn 1978, China emerged from the devastation of the Cultural Revolution as one of the world's poorest nations, with 88% of its population in absolute poverty. Following Chairman Mao's death in 1976, Deng Xiaoping initiated significant reforms in 1978, opening China to the world and embracing capitalism. Over four decades, these changes transformed China into the world's second-largest economy, lifting 700 million people out of poverty and significantly increasing its share of the global economy. Today, under President Xi Jinping, China continues its ambitious growth with initiatives like the One Belt, One Road project, aiming to establish a global trade network centered on China.

Takeaways

🌍 In 1978, China was emerging from the Cultural Revolution as one of the world's poorest nations.
👨‍🏫 Chairman Mao's death in 1976 marked the end of his ideological drive, leaving China economically and socially devastated.
📉 Eighty-eight percent of the population lived in absolute poverty, with China's economy being just 5 percent of the United States'.
📈 Over 40 years, China transformed into the world's second-biggest economy, with a 15-fold increase in GDP per capita.
👥 700 million people were lifted out of poverty, and China's share of the global economy grew from 1.8% in 1978 to 18.2% in 2017.
🔄 Deng Xiaoping's rise to power in 1978 brought radical changes, opening China up economically and politically.
🤝 Establishing formal diplomatic ties with the United States was a key step in Deng Xiaoping's reform initiative.
🌐 The number of Chinese citizens traveling overseas and foreigners visiting China increased dramatically from 1949 to 2017.
🏭 Embracing capitalism and encouraging private business fueled China's four-decade-long economic boom.
🛤 President Xi Jinping's ambitious plans, including the One Belt One Road initiative, aim to make China a global trade network hub.

Q & A

What was the economic condition of China in 1978?
-In 1978, China was one of the world's poorest nations, with 88% of its population living in absolute poverty and an economy that was just 5% the size of the United States'.

Outlines

00:00

📉 China's Transformation from Poverty

In 1978, China was recovering from the cultural revolution and was one of the world's poorest countries. Chairman Mao's death in 1976 marked the end of his intense communist policies that had left the country in economic disrepair and social chaos. At that time, 88% of the population lived in absolute poverty, and China's economy was only 5% the size of the United States'. However, within 40 years, China transformed into the world's second-largest economy, increasing its GDP per capita by 15 times and lifting 700 million people out of poverty. China's share of the global economy grew from 1.8% in 1978 to 18.2% in 2017.

🌐 Deng Xiaoping's Economic Reforms

The death of Mao Zedong in 1976 led to significant changes for China under the leadership of Deng Xiaoping, who rose to prominence in 1978. Deng initiated economic reforms that opened China to the global market, establishing diplomatic ties with the United States and encouraging international travel and trade. Between 1949 and 1978, only 200,000 Chinese citizens traveled abroad, but by 2017, that number had soared to 130 million. Deng's policies shifted China's economy from state-run enterprises to a more capitalist approach, attracting multinational companies and making China a global manufacturing hub. This economic transformation became the Chinese Communist Party's primary focus, leading to sustained growth and development.

🇨🇳 Xi Jinping's Ambitious Plans

Building on Deng Xiaoping's legacy, China's leaders continued to prioritize economic growth while maintaining their unique brand of socialism. Current President Xi Jinping is pursuing his own ambitious initiatives, including the One Belt, One Road project aimed at creating a global trade network centered on China. Xi's assertive foreign policy seeks to position China as the dominant economic and military power in the Asia-Pacific region, potentially challenging the United States' influence. These plans signify China's ongoing strategic efforts to enhance its global standing and economic strength.

Mindmap

Keywords

💡Cultural Revolution

The Cultural Revolution was a socio-political movement in China from 1966 to 1976 led by Mao Zedong. It aimed to preserve Chinese communism by purging remnants of capitalist and traditional elements from Chinese society, which left the country's social and cultural institutions devastated and the economy in tatters. This period is crucial to understanding China's state before the economic reforms.

💡Mao Zedong

Mao Zedong was the founding father of the People's Republic of China and its leader until his death in 1976. His policies, especially during the Cultural Revolution, significantly shaped the country's early communist era, leading to severe economic and social disruptions. His death marked the beginning of significant changes in China's political and economic landscape.

💡Deng Xiaoping

Deng Xiaoping was a Chinese politician who became the paramount leader of China in 1978. He is known for initiating the 'Reform and Opening Up' policies that transformed China into a global economic power. Deng's reforms included opening China to foreign investment and promoting private business, which drastically changed the country's economy and global standing.

💡Reform and Opening Up

The 'Reform and Opening Up' policy, introduced by Deng Xiaoping in 1978, aimed to open China to international trade and investment, and move from a planned economy to a more market-oriented one. This policy shift was pivotal in transforming China into a major global economic power, as highlighted by the subsequent economic boom.

💡GDP per capita

GDP per capita is a measure of a country's economic output that accounts for its number of people. It is used to compare the prosperity of different countries. In the video, it illustrates China's economic growth, rising from levels comparable to Zambia's in 1978 to a 15-fold increase by 2017, reflecting significant improvements in living standards.

💡Absolute poverty

Absolute poverty refers to a condition where individuals lack the financial resources to meet basic living needs. In 1978, 88% of China's population was living in absolute poverty. The video underscores the dramatic reduction of poverty, with 700 million people lifted out of poverty due to economic reforms.

💡One Belt, One Road Initiative

The 'One Belt, One Road Initiative,' introduced by President Xi Jinping, is an ambitious infrastructure and economic development project that aims to create a global trade network with China at its center. It reflects China's contemporary efforts to enhance its global influence and economic reach.

💡Manufacturing hub

A manufacturing hub is a region or country that specializes in the mass production of goods. The video describes how China transformed into the world's manufacturing hub by attracting multinational companies and embracing capitalism, which was a stark contrast to its earlier state-run enterprises.

💡Chinese Communist Party (CCP)

The Chinese Communist Party (CCP) is the founding and ruling political party of the People's Republic of China. The video discusses the CCP's role in China's transformation from a poor nation under Mao Zedong to a global economic superpower under leaders like Deng Xiaoping and Xi Jinping.

💡Xi Jinping

Xi Jinping is the current President of China and General Secretary of the Chinese Communist Party. The video highlights his role in continuing China's economic growth and global influence through initiatives like the 'One Belt, One Road' and his assertive foreign policies.

Highlights

In 1978, China was emerging from its Cultural Revolution as one of the world's poorest nations.

Chairman Mao's ideological drive left the country's social and cultural institutions devastated and the economy in tatters.

Eighty-eight percent of people were living in absolute poverty in 1978.

China's economy was just 5 percent of the United States' and its GDP per capita was the equivalent of Zambians in 1978.

Fast forward 40 years, and China is the world's second-biggest economy.

GDP per capita increased 15 fold, and 700 million people were lifted out of poverty.

China's share of the global economy rose from 1.8% in 1978 to 18.2% in 2017.

The death of Mao Zedong in 1976 brought radical changes for the Chinese Communist Party and the nation.

Deng Xiaoping became a key player in China's leadership in 1978 and embarked on a reform initiative.

Deng Xiaoping helped establish formal diplomatic ties with the United States.

Deng Xiaoping began opening up China to the world, significantly increasing international travel and trade.

From 1949 to 1978, only 200,000 Chinese citizens traveled overseas; in 2017, Chinese citizens made 130 million overseas trips.

Deng Xiaoping radically shifted China's economy by embracing capitalism and encouraging private business.

China quickly became the world's manufacturing hub, with growth becoming the Chinese Communist Party's number-one priority.

Deng Xiaoping's successors maintained his push for growth and socialism with Chinese characteristics.

President Xi Jinping is embarking on ambitious plans, including the One Belt, One Road initiative to create a global trade network centered on China.

Xi Jinping's increasingly bullish foreign policy aims to muscle out the United States as the key economic and military power in the Asia Pacific.