G. Bin Zhao

Opinion | China’s economic achievements over the past 70 years point to a strong future, even amid the US trade war and slowing growth

China’s reforms have completely overhauled its economy, urbanised society and improved living standards. The trade war and slowing GDP growth aside, the country’s fundamentals suggest good long-term prospects

Reading Time:4 minutes

Why you can trust SCMP

G. Bin Zhao

Published: 3:00am, 2 Sep 2019Updated: 3:34am, 2 Sep 2019

Uncertainty over the escalating US-China trade war has become a major factor affecting global growth. Some worry that it might lead to “one world, two systems” in the future. Former US Treasury secretary Larry Summers has also warned that the US may be in the early stages of a cold war with China.

However, China probably understands better than any country that closing itself off is not an option. Reform and opening up are the fundamentals of its economic success. China’s rapid development over the past seven decades or so has proved that.

But what exactly has China achieved so far? The National Bureau of Statistics recently revealed a slew of data and information for the first time that sheds some light on that question.

First, China’s GDP per capita had risen to US$9,732 by the end of last year, from around US$54 in 1952 – a 180-fold increase. China was probably one of the world’s poorest countries at the time. During the same period, US GDP per capita increased from US$2,349, or 44 times China’s, to US$62,606, just 6.4 times China’s.

In terms of its share of global GDP, China’s economy now makes up 16 per cent of the world total, from a mere 1.8 per cent in 1952. Additionally, China’s population has grown from 575 million in 1952 to nearly 1.4 billion at the end of 2018, an increase of 140 per cent in 66 years.

Second, China has gone from being a predominantly agricultural economy to the world’s factory and beyond, with 27 per cent of global manufacturing value added. In 1952, a large part of China’s population struggled to feed themselves and starvation was common. Then, the agricultural value added accounted for 50.5 per cent of the country’s GDP, with farmers making up 83.5 per cent of the workforce.