How did China rise to global economic power? (70s (four character policy…
How did China rise to global economic power?
four character policy gaige kaifang promulgated
"Gang of Four", including Mao's widow, jockey for power are arrested and convicted of crimes against the state
1977 Deng Xiaoping emerges as the dominant figure among pragmatists
China undertakes far-reaching economic reforms.
implemented in urban industry to increase productivity
dual-price system introduced
state-owned industries were allowed to sell any production above the plan quota
the beginning of the one child policy 
short term effects of this policy were quite positive [found that lower birth rates led to faster the economic growth]
annual growth rate of the real per capita income during this period was as high as 8.1 percent
simultaneously, the birth rate was very low—only 2%
“Socialism with Chinese Characteristics”
privatisation of state-owned industry and the lifting of price control regulations [banking and gas not affected]
the private sector grew [it accounted for as much as 70% of China’s gross domestic product (GDP)]
Unprecedented growth occured, and the economy increased by 9.5% every year from the 90s until the 00s
Foreign direct investments surged, millions were lifted out of poverty and China's foreign exchange reserves have ballooned to the largest in the world
Reformers began to realise that it was essential that they restructured the banking and financial sector
In 1994, the banking system was divided into three types of banks: commercial banks, policy banks and cooperative banks, with a limited but increasing role for private banks.
In 1998, with the onset of the Asian Financial Crisis, the reformers were able to push ahead with financial sector reform.
China joined World Trade Organisation (WTO) as the official 143rd member [December 11 2001]
required to lower tariffs for imports, allow foreign firms to sell products directly to the Chinese domestic market
had to open telecommunications and finance sectors to foreign countries.
China’s market was opened for more international trade and investment and it opened up the world economy for China’s exports
attained the title of 1st largest merchandise exporter, 1st destination for Inward FDI among developing countries and 1st investor for outward FDI among developing countries
During the 2000s, China’s economy doubled its size and the GDP percentage grew from 8.3% in 2001 to 10% in 2003 and 10.1% in 2005 to 14.2% in 2007
China’s population does not match its resources and gross domestic product
China has begun “exporting its people” by setting up shops in other parts of the world [an example is Africa: China has rapidly developed its presence during the last decade, in countries like Nigeria and Angola, among others and more than 750,000 Chinese have moved to Africa]
Some experts contend that the plan is to increase this number to the hundreds of millions, helping to put a dent into China's natural resource problem by tapping into Africa's resources, while thinning the herd in the home country.
Air and sea routes are increasing between China and African nations as massive deals are made for commodities, trade, labor and military cooperation.
Chinese private schools, embassies and cultural centers are popping up in places like Rwanda, Nairobi and Angola. Angola even has its own "Chinatown" district.
In return, countries in Africa get a willing trade partner and assistance and weaponry for its military factions. Africa also receives the supposed benefit of jobs and infrastructure building.