China's Economic Policy

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People’s Republic of China was established in 1949. Since that time, China’s policy was determined majorly by one man, Mao Ze Dong. He tried to mimic Soviet Union’s pushing policy and wanted to focus China’s development towards industry. China has pursued this development strategy for 30 years, industrial sector of China has developed a lot. However, it came with a high cost. I think Mao’s economic policy created more harm than good for the Chinese economy during the pre-reform period. During the economic recovery period, 1949-1952, Mao decided to recreate Soviet Union’s economic model in China. The government redistributed many lands to poor farming households. The Communist party earned supports from grass-root level farmers by implementing …show more content…

The plan focused in construction of 156 large industrial projects which were all imported from soviet and Eastern Europe. In 1955-1956, the government decided to have public ownership over many things. This policy led to a drastic change to the households. At the end of 1954 only 2% of households enrolled in coorperatives or collectives; by the end of 1956, only 2% of them did not enroll. Shops and factories in urban areas also turned into cooperatives during early 1956. Private ownership was no more after 1956. Khrushchev of the Soviet Union declared that all communist countries had the right to determine their own path to socialism on February 25, 1956. Chinese government had turned their policy making attitude since that day. It criticized its earlier policies as “reckless advance”. Chinese government allowed public political discussion known as the hundred flowers. During 1958-1960, which was the period of “The Great Leap Forward”, one of China’s darkest times. Mao started this “Great Leap Forward” movement by attacking all liberal intellectuals and critics who had spoken their opinion in the hundred flowers. Mao then started an “Anti-Rightist campaign” that aimed to eliminate intellectuals who are not in the party. 800000 …show more content…

First of all, slowdown in economic growth. During the first 5-year plan period, China had a roughly 9-percent increase in economy. It decreased to 5-percent growth on average during 1957-1978. Mao’s policies shifted the whole country’s development from agricultural to industrial. China was not familiar with industrial at that time. A sudden change from agricultural to industrial was not good for people at that time. Also, after developing bad relationship with Soviet, China lacked the technology power to develop industry. Therefore the growth rate of the whole economy slowed

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