ECONOMIC GROWTH OF CHINA

As inspired by the Bolshevik Revolution in Russia, young urban intellectuals have shaped  the Chinese Communist Party (CCP) in China in 1921. Later it has  officially named as Communist Party of China (CPC) and the sole ruling party of the People's Republic of China (PRC). Under the leadership of Mao Zedong the CCP won the civil war against Kuomintang. Then Mao proclaimed the founding of the People's Republic of China in 1949. Consequently the CCP took control of China and the People's Liberation Army. Since then each successive leader has added his own theories to the constitution of the party.

Since the end of Mao's period in 1978 China has transitioned from the state controlled socialist economy to a mixed economy compelling the transformation of the system involved in fiscal, financial, enterprise, governance, legal etc. At this time, in 1978, GDP of China was $293.6 billion (0.293 tn).( India had a GDP of $293.2 billion in the same period). Since 1980s China has been the fastest growing economy in the world. With an annual growth rate of 10% China's GDP reached at USD 2.286 trillion by 2005. In 2010 the GDP rose to USD 6.8 trillion and in 2015 to 11.06 trillion, 2020 to 14.68 trillion. The GDP of 2023:

USA $26.8 tn

China $19.3 tn

India $3.7 tn

During the Communist regime of Mao Zedong, food,. clothes etc rationed throughout China. Education and medicine were unreachable at that time. This extreme situation brought Mao to move from Communism to a mixed economy. The result of the shift to mixed economy was promising. And Chinese economy fast moved from Communism to today's Capitalist economy. Now China's private sector can be summed up with a combination of 60/70/80/90. Private firms contribute 60% of Chinese GDP,  70% of its innovative capacity,  80% of the urban employment and 90% of the new jobs. According to a report of Economy and Politics of Statista Research Department on 31 March, 2023 about top 20 billionaires in the world, China has 961 billionaires while USA has only 691. Stock market is spread across the whole China. Chinese economy is now a well established Capitalist Economy. The country had quantum leap in the world economic front since the shift to capitalism. However the country is ruled under a Communist flag by an Authoritarian government with no participation by the people. Despite all these facts Indian Communists teach their illiterate followers that Chinese economy is a Communist one. 

China is not a lone country that shifted from Communism. There were 42 countries in the world under Communism, but now only three are left, namely Cuba, Vietnam and Laos. Of these, according to international media reports, Cuba is almost all set to adopt American Capitalist economy. The Communist economy brought in by Karl Marx has been found to be a failure all over the world. Even the Indian states shown some interest in Communism are also moving away finally.

China is a glaring example for the economic collapse of Communism. The moment they have left Communism,  Chinese economy has made a quantum leap to reach the second highest economy of the world after USA. The paltry economic situation of West Bengal in India is the after effects of the 35 years Communist rule there. Though it was an alternative rule after every five years, despite having all the necessary resources, Kerala is at the verge of an economic catastrophe. Few decades ago, for instance, people from Tamil Nadu came to Kerala for agricultural, household work etc, now our people will start moving to that state for similar work. These are all the impacts of throwing out hundreds of industries came here. Communism in Kerala as well as in West Bengal set a destructive trend than setting a constructive trend as found in other countries of the world. To have the report we may go through the print and visual media every day. It is gradually moving to a state, where rectification is a nearly impossible task.

K V George