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China’s Economic Revolution

Today, China exports more products than any other country. But for most of its history, China played a minor role in the world market. Until the twenti- eth century, the Chinese did not view trade as a way to gain wealth. According to traditional Chinese ideas, commercial activity lowered morals and created conflict in society. During the Renaissance period (1300–1700), China restricted foreign trade to one southern port, Canton. The Chinese rulers sought to maintain stability by limiting foreign trade. The Canton system continued until 1912. After its reversal, conflict within the nation kept China from playing a larger part in the world econo- my. Trade remained low when the Communist Party took over in 1949. The communist rulers controlled the economy and focused on development within the nation. The government restricted goods coming into the coun- try, but expanded exports. In 1950, the United States stopped trade with China over the Korean War. This action pushed China to focus its export market on the Soviet Union. By the end of the Korean War in 1953, 75 percent of Chinese exports went to the Soviet Union, also a Communist nation. Agricultural products made up most of this amount. After China’s long-time leader, Mao Zedong, died in 1976, his successors began considering some new ideas about the national economy. The Communist government loosened its control over the economy. For the first time, it allowed private businesses to participate in international trade. Since 1979, China’s income as measured by gross domestic product (GDP) has risen by an average of 8 percent every year. China has also embraced inter-

national cooperation. In 1991, China joined the Asia Pacific Economic Cooperation group. China became an official member of the World Trade Organization in 2002. In recent years, China has signed free-trade agreements with many nations in South America, Africa, Europe, and Asia.

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