Opinion | China’s four-decade route to the world’s No 1 economy
Its impressive achievements are thanks to perseverance and the far-reaching economic and societal changes that have been introduced since 1978.
Within our lifetimes, China has transformed from an agrarian economy to a world-beating digital and consumption-led powerhouse, driven by smartphone-wallet shoppers.
This year marks the 40th anniversary of China’s economic reform and opening. In December 1978, China’s “open door” policy signposted a turning point in its economic management and trajectory.
Over the period, the character of China’s economic management has evolved from being strictly centrally planned, export oriented and state led to one that is more market led and oriented towards domestic consumption.
China’s gross domestic product has achieved an average annual growth rate of 10 per cent in the past 40 years – three times the rate in the United States over the same period.
Its GDP per capita increased from US$156 in 1978 to US$8,123 in 2016, lifting more than 800 million people out of poverty. By comparison, the US GDP per capita was US$57,638 in 2016, indicating there is still growth in the China story.
Today, China is the world’s largest economy on a purchasing power parity basis. It is the world’s largest manufacturer, exporter and holder of foreign exchange reserves. And China is actively aiming for a leadership role in globalisation and in combating climate change.
