China Economy and Politics

China Economy and Politics

In order to understand China economy and politics one needs to look into the society, the region and the larger global economy. In the 19th and 20th centuries China underwent civil unrest, major famines, military defeats and foreign occupation. After the World War II, the Communists under Mao Zedong established an autocratic socialist system that imposed strict controls thereby following a restricted economic policy. After 1978 scenario changed with the coming of Deng Xiaoping thereby adopting a market economic development.

Since 1978 China economy has changed as a result the living standards has improved dramatically yet the political control remains. The system operates in a political framework of Communist control but the economic influence of the non-state organizations and individuals has been increasing. In the village setting it now changed to household and village responsibility instead of the collective responsibility. The result has been tremendous the economy of China has quadrupled and in 2004 China stood as the second largest economy after the U.S., although the per capita income in the country is still poor.

China has benefited with the growth of Internet use with 94 million users by end of 2004. other important factors in China economy are the foreign investment, absorption of technology, the rising prominence in world trade and the alleviation of poverty. The problems include the shortage of electric power and raw materials. The chief industries of China are the mine and ore processing, iron, steel, aluminum, coal, machine building, textiles, petroleum, electronics, etc

The politics in People's Republic of China takes place in a framework of single party socialist republic. The state power within the PRC is exercised through three interlocking organizations - the Communist Party of China, the Central People's Government and the People's Liberation Army. The PRC is an oligarchy in which the political power and advancements depends on gaining support from an informal body of one to two thousand who constitute the leadership of these organs. If one looks back into the history of China some form or the other centralized imperial monarchy had ruled it.

In order to counter the surplus labor due to the growth of population the one child norm has made China aging country and the deterioration of the environment has and shall hamper growth in the future. Although the PRC regime has been variously described as authoritarian, communist, and socialist, it appears China is slowly becoming capitalist in its economic system.

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