Understanding China, One Blog at a Time

An American in China

Thanks World- China Becomes Second Largest Economy

Posted by w_thames_the_d on August 16, 2010

I marvel at this, I mean how is it that the world dumped so much time energy and money into China to make it the second largest economy in the world? WTF? You may ask, isn’t this the Chinese miracle, those diligent flaxen skinned fellows who save, study and procreate like rabbits?
Well my friends, I hate to burst your bubble, but this feat, in the end, was a team effort. The world opened their wallets to China when China opened up, and the chicoms merely hindered the growth and skimmed money where it could, but that dramatic rise lends itself to all that foreign cash plugged into China.
The reason is that when China opened up, its GDP, or dollars held per person was less than U$ 100. They were basically flat broke with stodgy old communist manufacturing plants that produced more waste then good. But, upon opening up, they were exposed to new technologies and more importantly, dollars, Francs, Pounds and nowadays Euros. With that currency and foreign know how, China has grown into a decent developing country (their GDP per person ranks only 124 in the world). Thus, what much of us associate with China and her miracle actually should be a celebration of what the world is able to do, viz support a hobbled economy or country. (caveat- many reports actually state teh Chinese GDP to be from 30-50% less than the chicoms report)

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