Towards Development (1). History and Future of Chinese Renaissance
China's period under imperial rule lasted nearly 2,000 years, a system that witnessed few periods of prosperity and many disappointments. China is a nation with history and civilization, but that history and civilization declined until the twentieth century, 1911, where that year the imperial system was overthrown forever and a new chapter began in China's modern history.
In the case of China, the competition was not honest. The conservative National Party and its rival, the Communist Party of China (CPC), turned the dispute into a rivalry and the skirmishes between them began to escalate until they reached a war. At the same time, the Sino-Japanese war broke out and World War II followed, so it would be absurd to think of China's economic growth under these wars and massacres, and until that moment there was no indication of the rise of China we see today.
But when did the rise of China begin? What are the indicators of this renaissance? ... Inquiries answered by this study.
The beginning of China's economic renaissance
After the end of the First World War, the civil war continued in China until the armed Communist militias eliminated any resistance to the conservative National Party. Mao Zedong, the party leader, declared the founding of the People's Republic of China and began a new phase of economic revival under the slogans of socialism and communism. Characterized by China's self-imposed isolation based on the communist principles set up by "Tong" and circulated throughout the country. Heavy industries, especially the iron and steel industry, became the state's foundation for more than two decades.
Interest in the industry, especially iron and steel, made many farmers change their profession and turn to industry, especially the heavy ones, the material return was higher and the state support was greater so their behavior was self-evident, and we should not neglect that we are talking about a country with a population of over 600 million At that time, most people suffered from extreme poverty, so the transformation of farmers led to paralysis in the agricultural sector, causing crop shortages. As a result, famine began to spread in the country and the Communist Party of Refuge had to import from abroad to cross the crop shortage crisis.
The leaders of the party recognized the error of the procedures they followed at that stage, forcing Mao Zedong to abandon many of his powers to some of the party's senior leaders, led by "Deng Xiaoweng," which changed many previous policies and support the agricultural sector to adjust the balance of strategic goods balance where Deng restored freedom of ownership of agricultural land and allowed state governors to take what they saw as good in their states and thereby ease the state's relative grip on economic activities. This allowed for the relaxation of routine and allowed for greater creativity. Indeed, the different sectors of the Chinese economy grew, It has always been the obstacle of the large population, where tens of millions of people still suffer from extreme poverty and the middle class is negligible. Although Xiao Bing put the first stone of China's rebirth in place, many things still have to be adjusted.
Since 1968, China has begun to renovate its infrastructure, such as paving roads and interest in energy products such as oil and coal, which contributed to a rapid development process during that period. Despite the easing of the central government's restrictions, the party continued to control everything China is still a clear feature of Beijing's policies. There was an urgent need to keep abreast of global development, especially with the increase in global trade and the targeting of China as a large human market. This need inspired Bing to exploit it by abandoning socialist policies and gradually opening up the world and the land. Production in the new capital policy.
After more than 20 years of economic experience, China has built a good industrial and agricultural base and a strong infrastructure that can withstand the expected economic opening. If China had decided to open its markets to the outside world without a strong industrial, agricultural and commercial base, it would not have succeeded. The most experienced countries in these areas with better products and cheaper prices, but China, including the elements become ready to compete as the government was loosened on most economic activities and re-draft laws commensurate with the new investment situation, Doors to foreign investment in addition to the development of legal regulations so as to ensure its workers' rights and at the same time benefit the investor community.
Development areas in China
In parallel with the previous phase, China has developed community in several areas, especially education, health and population increase. It has had a share of advertising campaigns to raise awareness of the importance of the community within 10 years of implementing these measures. The GDP doubled from 149.54 billion dollars in 1978, which represented the beginning of the economic opening to 312.85 Billion dollars in 1988 with very high growth rates ranging from 5.17% to 15.14%, and at that stage China was laying the foundations for its next rise.
Since the beginning of the nineties of the last century, the Chinese government has begun to implement plans for the doors of new industrial doors such as electrical appliances and electronic industries that were not within the previous plans, now China has entered the field relying mainly on the tradition of products developed countries in those areas and over time the government will support the budget research Science, which will return with technological innovations that qualify them to match or even surpass those countries. China's policy continued to support all that would raise its export rates. It examined the markets of third world countries to determine their needs and found that these countries were more inclined to the consumer industries and directed their support to support these activities until today China became the largest exporter in the world at 2.37 trillion dollars .
China is the largest exporter and second largest importer in the world
If we analyze the exports of China, we find that the largest 5 sections are as follows:
Electronic computers by 7.9%, equivalent to 188 billion dollars.
Broadcast equipment by 7.0%, equivalent to $ 165 billion.
Mobile phones by 4.7%, equivalent to 112 billion dollars.
Electronic segments by 2.8%, equivalent to 65.7 billion dollars.
Office supplies by 1.9%, equivalent to 45.4 billion dollars.
The above will confirm the direction of China since the nineties and until now, focusing on the technological fields before other fields, in addition to the above is also active in the field of textile, which brings back 243 billion dollars annually and also the metal industry, which returns about 180 billion dollars and a total of It is possible to say that China exports all its exports and commodity variety to more than 95% of the needs of people, such as plastic handicrafts, through shoes, toys and electronics to heavy industries such as cars, ships, trains and aircraft, The manufacturing of various quality grades, which makes the ball the entire floor has a target market.
If China is the world's largest exporter, it is worth mentioning that it is the second largest importer of 1.27 trillion US dollars, as its growing industrial pace needs raw materials and energy sources, and at a glance to the top 5 elements imported by China, we will find them as follows:
Crude oil rose 9.4% to $ 119 billion.
Electronic segments by 7.5%, equivalent to 95.2 billion dollars.
Gold rose 5.2% to $ 65.8 billion.
Iron ore by 3.4%, equivalent to 42.9 billion dollars.
Cars by 3%, equivalent to 38.5 billion dollars.
The above confirms that what has been achieved in the field of agriculture is large, China, which was once suffering from the weakness of agricultural activity now has a semi-self-sufficiency is not found in the list of the first import any kind of agricultural crops and the nearest crop in that list is soybeans, The total import of China from agricultural crops and oil does not exceed $ 80 billion, compared to its population is very little.
Gold is in third place as China is the world's top gold reserve because it is the real value store. China imports annually precious metals worth $ 80 billion, either to keep them or to be used for trade. On the financial side, China is the world's largest foreign currency reserve with $ 3.9 trillion and also the largest investor in US Treasury bills at $ 1.244 trillion.
Economists are always skeptical of American and European economists, accusing China of falsifying its economic growth figures to show it best to attract foreign investment to the Chinese market and also accusing it of devaluing its yuan to give it a competitive advantage over its counterparts from other countries. The Chinese is the world's second with total domestic output of $ 10.945 trillion.
How can the Chinese experience be applied in Egypt?
In fact, China is a great example of any country that wishes to achieve economic renaissance because it has been able to exploit its natural resources in the best way possible, while some thought that its large population would be an obstacle to achieving any possible renaissance. Some 1.35 billion people live on land of 9.6 million km They have been able to achieve a tremendous leap and a quantum leap in all economic activities such as agriculture, industry and trade, which has been reflected internally in the education, health care and infrastructure systems of roads and means of transport. The development has been evident in all forms of life in China. In Egypt, it is worth mentioning the similarity of the beginning of the two countries, where the Renaissance plan began in the 1950s. Despite the challenges that faced China from ignorance, poverty, disease, large population and poor distribution of wealth, it was able to properly cross those crises. The world's largest economy has taken possession of the gold reserves and the educational level has been better than in China, especially university education. However, the actual reality is declining almost continuously, and certainly the results of the experiments are strongly in favor of the Chinese genie while Egypt is still looking for the road. Several Awa For; the most important are:
1 - Creating the internal investment climate before opening up globally:
At the same time China supported itself and established a strong industrial and agricultural infrastructure before opening up to global markets, Egypt was experiencing difficult regional conditions because of the wars it entered, which drained much of its wealth and hindered its progress. When it tried to take the capitalist trend, She could not keep up with her foreign counterpart, which ended with the expected return of the experience.
2 - smooth transformation of the economic system:
China was transformed from a socialist system into a middle-term capitalist. The system was a hybrid between the two. It was safe to invest locally and was not affected by the turmoil associated with the transformation process. The state of Najd is still facing difficulties in integrating the private sector in the conduct of state affairs. The sector is always accused of not being able to sustain entire sectors of the state.
- Ensuring that investment laws are adapted to market requirements:
China has been able to pass investment laws in every era to accommodate foreign investor fears of entering into an emerging market such as the Chinese market with conditions that would not harm the interests of the state. Egypt has applied the privatization system in a relatively wrong way. Some successful projects have been sold, Which is considered a burden on the state in addition to continuing attempts to issue an investment law that balances the interests of the state and the interests of investors, which is in the case of access to motivation and support to increase foreign investment.
4 - Focus on the strengths of the economy:
China has been able to focus on strategic industries in order to make the best use possible. Focusing on rice cultivation or industries such as iron, steel and coal is a security characteristic of China, which is a locomotive for growth that gradually draws the rest of the country's sectors. In contrast, Egypt, We neglected to rely on it or to develop it until we passed the time. Even when we wanted to liberalize our economy, we did not focus on productive activities. We are distinguished in terms of cotton or furniture. We wanted comprehensive growth in a short time, perhaps due to our desire to compensate for what we missed. Efforts on all areas.
- Linking the incentives to the quality of production:
In some stages of its experiment, China has linked the rate of wages to the quality and quantity of production, which has given the people the impetus to increase the quantity produced while maintaining the quality of the final product. In contrast, Egypt, although some companies and factories apply this principle, but it should be applied generally to all companies and factories to improve product quality Increasing their competitiveness and also instilling a feeling of safety for workers. The more they strive to apply the quality standards, the higher their wages and incentives. This will create motivation and give them hope for a better tomorrow.