Five factors of the "Chinese economic miracle" that Russia ignores

A few days ago, another five-year development plan for the country until 2025 was presented in China. Experts note that Beijing is now forced to take into account the factor of confrontation with the United States, therefore it delicately avoids specific numbers, but still intends to build a superpower.

"Chinese economic miracle ", which everyone so admires, is based on a combination of several factors:

At first, the use of "five-year plans" with specific goals and objectives that they spied on from the USSR.

Secondly, at the initial stage, the great competitive advantage of the PRC was a huge labor army of yesterday's peasants, ready to work hard from dawn to dawn for symbolic money. At present, much has changed in this regard: Beijing is investing heavily in education and science, many Chinese students study in the best foreign universities and, after returning home, expect a decent wage for their work.

Thirdly, China opened its market to transnational corporations in exchange for providing them with access to advanced technology... TNCs created in China not only production facilities, but also research centers, where local specialists underwent training and practice. Today, the PRC is no longer associated with cheap knitwear, but with fashionable electronic gadgets, an actively developing auto industry, aviation industry and its own space program.

FourthlyBeijing is consistently manipulating the exchange rate of its national currency, which gives an advantage to Chinese exporters, and in order to promote its own interests, China has entered the WTO. The authorities systematically support enterprises and industries aimed at foreign markets by providing them with credit, customs, tax and other preferences.

Fifthly, a significant role was played by the "return to home harbor" of Hong Kong. Through it, China receives about 70% of foreign direct investment and makes almost 60% of its own investments abroad.

All this made the Celestial Empire not only a "world workshop", but also turned it into a real competitor to the United States of America. The trade war unleashed by President Donald Trump aims to slow down the rapid development of the PRC. The Chinese economy still has an Achilles' heel inherent in its very nature: export-oriented and huge population with very modest average income. Note that the new five-year plan is aimed at trying to eradicate these problems.

Beijing has set itself the goal of building a "socialist society of average income." By 2035, GDP per capita should reach “the average level of developed economies,” which means countries such as Spain or the Republic of Korea. China intends to ensure the sustainability of its own economic model by increasing domestic demand. Also, the Communist Party of the PRC is going to protect the country from negative external factors through the development of agriculture, and the industry should be transformed taking into account "green technologies".

Technological development is at the forefront in China. If in the last five-year period science and technology were named a priority 4 times, then in the program from 2020 to 2025 - already 11 times. Moreover, it is emphasized that this should be done with self-reliance. It is obvious that Beijing intends to compete with Washington for the right to be considered an advanced technological power in the future.

For my part, I would like to express regret that some reasonable recipes for the "Chinese economic miracle" under the liberal tales about the "invisible hand of the market" in Russia were stubbornly ignored, and now China is not considered the real threat to the United States.
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  1. Cyril Offline Cyril
    Cyril (Kirill) 31 October 2020 11: 50
    that some reasonable recipes of the "Chinese economic miracle" under the liberal tales about the "invisible hand of the market" in Russia were stubbornly ignored

    It was the "Chinese economic" miracle that made possible the partial introduction of this "free hand of the market". What China would be without these innovations can be seen firsthand on the example of its neighbor, the DPRK.
    1. Alexander Ra Offline Alexander Ra
      Alexander Ra (Alexander) 31 October 2020 13: 09
      Then where is the Russian economic miracle from "this very" free hand of the market "? The "free hand" for China is an activator, for Russia it is sabotage.
      1. Cyril Offline Cyril
        Cyril (Kirill) 31 October 2020 13: 53
        Because one "free hand of the market" is not enough.
    2. Marzhecki Offline Marzhecki
      Marzhecki (Sergei) 31 October 2020 16: 06
      A counter question: we have had a hand for a long time, but why is there no miracle?
      And the DPRK is in isolation and under sanctions, if anything, because its success with the PRC is incorrect to compare.
      1. Cyril Offline Cyril
        Cyril (Kirill) 31 October 2020 17: 26
        A counter question: we have had a hand for a long time, but why is there no miracle?

        Well, whether we have a "miracle" or not is a moot point. In general, the average Russian lives better than the average Chinese.

        China has a somewhat paradoxical situation. It has really strong economic indicators, but from the point of view of people's well-being, this is not particularly noticeable. I can assume that the lion's share of China's "economic miracle" is provided by the presence of a very large and at the same time rather low-paid labor force.

        The second point is that apart from the “free hand of the market”, a “miracle” requires a transparent political system and a relatively low level of corruption. The market will be of little use if all of its advantages are offset by a high level of corruption, kickbacks, non-transparent mechanisms of economic regulation, etc.

        And the DPRK is in isolation and under sanctions, if anything, because its success with the PRC is incorrect to compare.

        From the beginning of its existence, the DPRK has taken a course towards authorship - this is spelled out in its state ideology. And this very author, by the way, is just one of the aspects of the lack of economic freedom.
        1. Cyril Offline Cyril
          Cyril (Kirill) 31 October 2020 18: 21
          typo - correct author *
      2. Cyril Offline Cyril
        Cyril (Kirill) 31 October 2020 17: 28
        Yes, and there is no "free hand of the market" in modern Russia - we have state capitalism predominantly, not normal capitalism. Almost all large enterprises are controlled by the state.
        1. Vladimir Tuzakov (Vladimir Tuzakov) 3 November 2020 17: 07
          In the Russian Federation, it is not state capitalism, but feudal capitalism (the specifics of the Russian Federation), when property is considered state-owned, and a handful of usurpers are in power, holding everyone else down with the levers of the state ... It is very similar to the nomenklatura socialism of the USSR in recent years, although the nomenklatura stratum was orders of magnitude wider, and deductions are much more "for the people" ...
    3. Ov Gogolev Offline Ov Gogolev
      Ov Gogolev (Ov Gogolev) 7 December 2020 16: 38
      In Russia, this hand is thieves' and without any control, therefore, in Russia for the last 10 years, the stagnation is the most stagnant in history, the growth rate is 0,88% per year. During this time, China has more than doubled.
  2. Toha from KZ Offline Toha from KZ
    Toha from KZ (Anton) 1 November 2020 09: 40
    And the author himself is ready to work hard from dawn to dawn to make a Russian miracle? The main Chinese miracle happened at Tiananmen Square. They did not babysit the freaks who were dragging the country into the abyss.
    1. bear040 Offline bear040
      bear040 1 November 2020 10: 46
      So the Russian Federation has great scientific potential, most Russians have either good or excellent education, these are not illiterate Chinese peasants who cannot read. Russia for the Russian economic miracle lacks only the Russian patriots in power. A CNC machine for a Russian is quite a normal workplace, not a spaceship, and this is already an opportunity to produce many high-quality goods. Mistral workers need to be driven from the Kremlin, who plow abroad to the detriment of the Russian Federation, and everything in the Russian Federation will go well.
      1. Ov Gogolev Offline Ov Gogolev
        Ov Gogolev (Ov Gogolev) 7 December 2020 16: 40
        That's for sure! 30 years ago, China was a poor country and it was far from the USSR.
  3. Jacques sekavar Offline Jacques sekavar
    Jacques sekavar (Jacques Sekavar) 1 November 2020 10: 24
    The state of affairs in the People's Republic of China after the end of the Second World War and the Great Leaps forward was similar to the state of the USSR after the Great October Socialist Revolution and the Civil War, about which V.I. Lenin wrote:

    Defeat on the economic front is more serious and dangerous than anything else.

    Lenin saw the main reason for the critical state of the economy in the centralization of economic policy beyond any measure, which led to its isolation from the people - “everything is collective farm, everything is mine”.
    Any new social formation is born in the depths of the old and inherits its features. Socialism is no exception, and as an intermediate stage all the features of capitalism are inherent in it - the exploitation of man by man, the desire of the owner to increase profits and the appropriation of surplus value, etc.
    Proceeding from this basic postulate of Marxism, Lenin proposed a solution to the problem through the New Economic Policy, which would combine the interests of the private owner-capitalist and his slaves.
    The fundamental difference from capitalism is that the state did not let the economy “run its course”, but assumed the function of regulating all the main elements of traditional capitalism - entrepreneurship, trade, money circulation, the social sphere, etc.
    Based on the works of V.I. Lenin, Deng Xiaoping began his economic reforms in relation to the specific conditions of China.
    Land reform, entrepreneurship and private property, oversupply of labor and public administration, i.e. guarantees of the state, led to a rapid economic growth, but not anarchic, but controlled and directed by the state, that is, by the Communist Party of China, which today directs capitalists to solve state (!!!) tasks - to increase production and its modernization, increase employment and number the proletariat, controls and forces the capitalists to serve the interests of the state, i.e. to the proletariat. In the PRC, this is clear and obvious to everyone - the world's largest economy, the average wages and living standards are two times higher than in the Russian Federation and is steadily striving to the level of developed capitalist states, and the decline in the number of the poor is measured annually by tens of millions and reaches the level of average income.
    All this Chinese miracle is built on the bones of the USSR, the collapse of which was not predetermined by socialism, but by the theoretical ignorance of the leadership of the CPSU and the state (as Vladimir Putin said, they did not know what to do), their isolation from the people (the formation of a class of the so-called untouchables ) and formal socialization of production.
    1. Ser sash Offline Ser sash
      Ser sash (Ser Sash) 7 November 2020 09: 25
      Even the USSR did not provide for the function of self-defense against a change in the system and control of power from stupidity. As, for example, in the USA.