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Class Notes: Democracy or Communism? China’s Economy

Class Notes: Democracy or Communism? China’s Economy. China’s Economy Since 1978, China has shifted from a centrally planned economy (communism) to a more market-type economy (capitalism). GDP = $13.37 trillion (2013)(second largest economy in the world in purchasing power after U.S.)

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Class Notes: Democracy or Communism? China’s Economy

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  1. Class Notes: Democracy or Communism? China’s Economy

  2. China’s Economy • Since 1978, China has shifted from a centrally planned economy (communism) to a more market-type economy (capitalism). • GDP = $13.37 trillion (2013)(second largest economy in the world in purchasing power after U.S.) • Labor Force= 797.6 MM workers (approximately 2.6 x U.S. population) https://www.cia.gov/cia/publications/factbook/geos/ch.html

  3. China’s Economy • China's GDP will rise from $13.37 trillion in 2013 to $20.3 trillion in 2016, the US' economy will increase from $16.72 trillion to $19.7 trillion. • China's portion of the global economy will increase from 14% to 23.8%, while the US' share will decrease to 20 percent. • Source: "China's economy to surpass US in 2016: IMF." Business Daily Update 26 Apr. 2011. Gale Power Search. Web. 8 Feb. 2012. https://www.cia.gov/cia/publications/factbook/geos/ch.html

  4. China’s Governmental Paradox • Freedoms… • Government encourages business development • Citizens free to buy & sell whatever they want • Work at any job • Anything that helps China economically goes… • Gov’t lowered cost of cell/internet to shrink digital divide

  5. Controls… • People have limited political freedoms • Cannot speak out against the sovereign right of the communist party in China to rule and govern China in any manner they want. • Government authorities can block access to internet (YouTube, etc) and text messaging/phone services – this censorship is difficult

  6. Example: Tiananmen Square 1989 • Pro-democracy rally that thousands gathered at over a three-week period • International media watched as events unfolded • Chinese government used force to disperse crowds—drove tanks into crowd and shot at protestors…with the world watching…

  7. Example: Tiananmen Square 1989 • People in their 20’s don’t know this happened!! Why is that??

  8. Economic Challenges • To sustain adequate job growth for tens of millions of workers laid off from state-owned enterprises, migrants, and new entrants to the work force. • To reduce corruption and other economic crimes. • To contain environmental damage and social strife related to the economy's rapid transformation.

  9. Presidential Comparison • Deng Xiaoping opened Chinese economy to free market reforms – he accepted technological advances because they were a part of modernization • Current President Xi Jin Ping has called for new reforms to prevent corruption and continued economic reforms in China

  10. Where’s Mao? • Who controls what goes into textbooks in China? • What has the government chosen to focus on? • What have they dropped from their textbooks? • The Chinese government • Economics, technology, and globalization • Communist revolutions and socialist theory

  11. Where’s Mao? • Mao Zedong is mentioned once- in the etiquette section • Goal is supposedly to create a “more stable, less violent view of the Chinese history that serves today’s economic and political goals. • Textbook downplays The Great Leap Forward, the Cultural Revolution, Tiananmen Square 1989

  12. Bottom Line… Economic Successes and Freedoms = Political Freedoms

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