10.2 Emerging China

The Emergence of Modern China

China is the world’s largest Communist country. Isolated from Europeans and Central Asians by the Himalayas and other high mountain ranges, Chinese culture has endured for thousands of years. Rich in history, adventure, and intrigue, a tour through China would reveal a people with a deep, long standing love of the land, traditions as old as recorded history, and a spirit of commerce and hard work that sustains them to this day. China is about the same land size as the United States, although technically it is slightly smaller than the United States in total area, depending on how land and water areas are calculated. China only has an eastern coast, whereas the United States has both an eastern and a western coast. If you recall the climate types and the relationship between climate and population, you can predict the location of the heavily populated regions of China.

The form of Communism promoted by Mao Zedong was not the same as the type of Communism practiced in the Soviet Union. Various Communist experiments were forced upon the Chinese people, with disastrous results. For example, in 1958, the Great Leap Forward was announced. In this program, people were divided into communes, and peasant armies were to work the land while citizens were asked to donate their pots and pans to produce scrap metal and increase the country’s industrial output. The goal was to improve production and increase efficiency. The opposite occurred, and millions of Chinese died of starvation during this era.

Another disaster began in 1966 and continued until Mao died in 1976. The Great Proletarian Cultural Revolution wreaked havoc on four thousand years of Chinese traditional culture in a purge of elitism and a drive toward total loyalty to the Communist Party. Armies of indoctrinated students were released into the countryside and the cities to report anyone opposing the party line. Schools were closed, universities were attacked, and intellectuals were killed. Anyone suspected of subversion might be tortured into signing a confession. Violence, anarchy, and economic disaster followed this onslaught of anti-Democratic terror. Estimates vary, but most sources indicate that about thirty million people lost their lives during the Mao Zedong era through purges, starvation, and conflict.

During the early decades of Communism in China, all travel into or out of China was severely restricted by the so-called Bamboo Curtain. The United States had backed the nationalist movement that opposed the communists during the Chinese Civil War, and continued to support Chiang Kai-shek in Formosa (Taiwan). The United States did not recognize Communist China; the US embassy was in Taiwan, not in Beijing. As China was experiencing its disastrous experiments with Communism, the core economic areas of the world were advancing with commercial technology and high-tech electronics and sending rockets to the moon. China lagged behind in its industrial activities and became a country based on agriculture. A visit to China by US president Richard Nixon in 1972 signaled the opening of diplomatic relations with the United States and was also viewed as a Cold War move against the Soviet Union.

The Chinese Communist Party’s approach when it took power was to institute a “planned economy.” A planned economy, sometimes called a command economy, stands in marked contrast to a market economy. In a planned economy, the government controls all aspects of the economy, including what goods and products should be produced, how much of each should be produced, how products will be sold or distributed and for what (if any) price, who should have jobs and what jobs they should have, how much people will be paid, and all other decisions related to the economy. In a planned economy, businesses are nationalized; that is, businesses are owned by the government rather than by any private entity. By contrast, in a market economy, businesses are privately owned, and most decisions are driven by consumer and investor behavior.

The decade of the 1980s was a transition for China in that there was a shift of focus from China’s Communist economy to a more market-oriented economy. The economic collapse of the Soviet Union in the early 1990s coincided with the opening of China to trade with the West. In 1992, China announced that it would transition to a socialist market economy, a hybrid of a Communist-planned economy and a market economy. A series of

statements by China’s political leaders suggested that in order for China to enjoy a more mature form of socialism, greater national wealth was needed. They further indicated that socialism and poverty should not be considered synonymous and that the country was ready to turn its attention to increasing the wealth and quality of life of its citizens. During the next decade, China experienced an enormous growth in its economy. At the beginning of this century, China was ranked in the top five of the world’s largest trading nations, joining ranks with the United States, Germany, Japan, and France. The sheer size of China’s population contributes to the magnitude of its economy. This does not, however, mean that most of China’s population has a high standard of living.

Political Units

China can be divided into regions utilizing various criteria: political regions, economic regions, natural regions, and climatic regions to name a few. The Communist government of the People’s Republic of China (PRC) is made up of a number of types of political units. The main region of China Proper includes twenty-two provinces, including the island province of Hainan in the south. The island formerly known as Formosa, now called Taiwan, is considered by China to be its twenty-third province but in actuality remains under its own government—the Republic of China (ROC). Mainland China includes five autonomous regions, each with a designated minority group; four municipalities; and two special administrative regions (SARs) that hold considerable autonomy. All but Taiwan are included in the region called Mainland China, except the SARs Hong Kong and Macau.

The autonomous regions exist as a kind of a compromise between China and the regions that would prefer to be totally independent and that have large non-Han or ethnic minority populations. These five autonomous regions are Tibet, Guangxi, Xinjiang, Inner Mongolia, and Ningxia. It should be noted that “autonomous” is how China would describe these regions, but that description is arguable. In reality, the autonomous regions have very little legal ability to govern themselves and, in fact, have in some ways less autonomy than the provinces to pass their own legislation.

Four of China’s cities have governance structures that are roughly on par with that of the provinces. The directly controlled municipalities are Beijing, Tianjin, Shanghai, and Chongqing and encompass large geographic areas well beyond the city limits, including towns, villages, and rural areas.

The two SARs of China are Hong Kong and Macau. Hong Kong was part of the British Empire and later a British protectorate until its governance reverted to China in 1997. Known informally under Chinese law as “one country, two systems,” Hong Kong and Macau are guaranteed a great degree of autonomy for at least the first fifty years after the transfer from Britain to China. China is responsible for defense and some aspects of foreign affairs, while Hong Kong and Macau are responsible for most other matters of state, including their legal systems, law enforcement, immigration laws, monetary systems, customs policies, and others.

Figure 10.12 China and Its Administrative Divisions, Including Autonomous Regions, Municipalities, and SARs

More than 50 percent of China’s population lives in rural areas, meaning there is potential for high levels of rural-to-urban migration. The core industrial cities located in China Proper attract migrants in a periphery-to-core migration pattern. China hopes that this urbanization and industrial activity will also support their population control methods and fuel the industrial labor base. China’s urbanization increased at an unprecedented rate from 17 percent in 1978 to 47 percent in 2010. This rural-to-urban shift has been one of the largest in human history.

Ethnic Groups

Han Chinese is the largest ethnic group in China, with about 90 percent of the country’s population. Some of the largest minority groups include Zhuang (Tai) in the south, Manchu in the northeast, Mongolian in the north central region, Uyghur in Western China, and Tibetan in Tibet, although many other minority groups exist. The main language in China, Mandarin, is spoken in different ways in different parts of the country, particularly in the north and the south. The number of languages in China (over 290) roughly corresponds to the number of ethnic groups in the country. In Western China, where the percentage of Han Chinese is quite low, most of the population is Uyghur, a group that tends to be Muslim. There are also Kazakhs, Kyrgyz, and Tajiks from Central Asia, who are also predominantly Muslim. In 2010, the precise number of Muslims in China was not known, but government reports indicated there were about twenty-one million. Other reports indicate there may be three times that many. Minority groups like the Uyghurs have often experienced discrimination by the Chinese government, which has taken measures to marginalize minority groups to keep them in check.

Figure 10.14 China and Its Main Ethnolinguistic Regions

As a Communist country, there is no official religion in China, nor is any supported by the Chinese government. Before Communism took control, most of the people followed a type of Buddhism. Other belief systems included Taoism and the teachings of Confucius. Christianity does exist in China, but it is illegal to proselytize or recruit converts. Despite that, the Christian population in China has grown rapidly in recent decades. The exact number is unknown, but the CIA World Factbook estimates 3 to 4 percent of the population to be Christian, or somewhere between thirty-nine and fifty-two million adherents. There are many other sects and religious groups in China that have gained attention in recent years. Among these are the followers of Falun Gong, which emerged in the 1990s and has elements of Buddhism and Taoism in its beliefs. The group claims to be more of a science than a religion. The Chinese government believes otherwise and banned the Falun Gong in 1999 after the group staged a large protest against the Communist Party. The crackdown by the government included many arrests and stiff prison sentences. The group is currently banned by the government.

Economic Summary

In the past two decades, China has shifted its economy from a closed system with a centrally planned, government-controlled market to one with more open and a flexible production structure. These economic reforms have allowed capitalistic tendencies to drive production, have promoted increased involvement in private enterprise, and have increased international investment in the Chinese economy. China has phased out collective farms and has increased agricultural production; the approach to free enterprise and international trade and investment has become more open; and the Chinese economy has grown at a rapid rate. Open trade and interaction with the global community have allowed China to catch up with the rest of the world in terms of information and communication technology, and computer and Internet use in China has opened up many sectors to new opportunities and employment possibilities. China’s policy of creating special economic zones (SEZs) has increased urban and economic growth in coastal cities, fueling the strong rural-to-urban shift in the population.

Figure 10.15

Beijing, a metropolitan center of Chinese culture, is the capital of China. Freeway development has expanded in recent years as higher incomes have allowed for automobile purchases. As a result, traffic congestion and air pollution are part of China’s current environment.

Growth of Enterprise and Industry

During the 1980s, following the death of Mao Zedong, China went through a transition period. The new leader, Deng Xiaoping, realized that in order for China to compete in the world market, its economy would have to be modernized. The challenge was to open up to the outside without the outside placing pressure on the Communist system inside of China. The so-called Bamboo Curtain, which referred to the restriction of movement of goods and people across Chinese borders, diminished. To attract business and tap into the global market economy, China established SEZs along the coast at strategic port cities. SEZs attracted international corporations who wanted to manufacture goods cheaply, while China’s population of 1.3 billion people provided an enormous labor pool and consumer market. China’s modernization efforts paid off in the 1990s, when world trade increased and US trade with China exploded.

By the year 2000, China had profited greatly because of its expanded manufacturing capacity. The coastal cities and the SEZs had become core industrial centers, attracting enormous numbers of migrants—most of them poor agricultural workers—looking for work in the factories. Compared to other jobs, factory jobs are prized employment opportunities. Rural-to-urban shift has kicked in and China’s urban growth is occurring at unprecedented rates. Chinese people are moving to the cities looking for work, just like people in many other areas of the world. The SEZs encourage multinational corporations to move their overseas operations to China and take advantage of the lower labor and production costs. China benefits from the new business opportunities and by the creation of jobs for its citizens. SEZs operate under the objectives of providing tax incentives for foreign companies, exporting market-driven manufactured products, and creating joint partnerships so that everyone benefits. In the past decade, four main cities have been designated as SEZs, along with the entire province of Hainan Island to the south. Many coastal cities were also designated as development areas for industrial expansion.

Figure 10.16

Coastal development and SEZs along the coast of China are prompting growth of the rural-to-urban shift.