Headline July 11, 2019/ '' ' UNDERSTANDING CHINA'S UNDERPINNING' ''

'' ' UNDERSTANDING CHINA'S 

UNDERPINNING' ''

JUST GO BACK 70 YEARS - yes just 70 years, and you will determine for your own-self that China had, if anything, just a very bleak future.

Ration cards, mass hunger, poverty and political chaos had been till then, just reigning very, very  supreme.

Chinese people were struggling to survive amid fast deteriorating basic facilities, public rights, human capital and employability. In a nutshell, China had hit rock bottom in all spheres of life.

Then, signs of a miracle appeared in 1949. China girded up to rise from ashes when Chairman Mao Zedong stood in Tiananmen Square in Beijing and heralded the beginning of People's Republic of China.

In a turnaround from a poor agrarian society into one of the world's most powerful economies is nothing short of a miracle.

The surge in wages is one of the many indicators showing how China is making its best strides as the new world leader in human capital development and labourer salaries.

China's average monthly wage [converted into US dollars] in 1990 was $55, compared with US $32 in Vietnam and $221 in Mexico.

However, in 2018, China's average monthly wage [at $990] was 316 percent higher than that in Vietnam [$238] and 158.5 per cent higher than in Mexico [$383]. From  2007 to 2018, China's average monthly wage rose by 263 percent.

After economic reforms were launched in 1979, China's real gross domestic product [GDP] grew at an average annual rate of nearly 10 percent until 2017.

According to the World Bank, China has ''experienced the fastest sustained expansion by a major economy in history and has lifted more than 800 million people out of poverty.''

China has emerged as a major global economic power. For example, it ranks first in terms of economic size on a purchasing power parity [PPP] basis, value-added manufacturing, merchandise trade, and foreign exchange reserves.

Beginning in 1979, China launched several economic reforms. The central government initiated price and ownership incentives for farmers, which enabled them to sell a portion of their crops in the free market.

In addition, the government established four special economic zones along the coast for the purpose of attracting foreign investment; boosting exports and importing high-technology products to China.

Additional reforms followed, albeit, in stages, which sought to decentralise economic policy making in several sectors, especially trade.

Economic control of various enterprises was given to provincial and local governments, which were generally allowed to operate and compete on the principles of the free market rather than the  direction and guidance of the state. In  addition, citizens were encouraged to start their own businesses.

Additional coastal regions and cities were designed as open cities and development zones, which allowed them to experiment with free-market reforms and offer tax and trade incentives to attract foreign investment.

In addition, state price controls were gradually eliminated from a wide range of products. Trade liberalisation was also a major key to China's economic success.

From 1979 to 2018, China's economy grew by 9.4 percent annually on average, much higher than the world's average economic growth of 2.9 percent.

China's economic growth has put its economic contribution around 18 percent to the global economic growth during that period, second only to the United States.

Along the way, China reduced infant mortality rate by 85 percent and raised life expectancy by 11 years.

The Honor and Serving of the latest Global Operational Research on China continues. The World Students Society thanks author and researcher Yasir H Khan from Global Times.

With respectful dedication to the Leaders, Grandparents, Parents, Students, Professors and Teachers of China, and then the world.

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''' Poverty Paints '''

Good Night and God Bless

SAM Daily Times - the Voice of the Voiceless