I see there's some misinterpretation, so I thought I'd make a disclaimer here. I made this video in response to the mainstream argument that China's economic success is because it adopted 'capitalism' (opening up its economy, allows private companies to make profits, and lessening state control), which I acknowledged in the video is a big part of its success. But I think it's a bit oversimplified. There is some nuance to it (how China changed and reformed) and I felt that could help people who are curious about China's system gain a better understanding. I am in no way trying to promote any political viewpoints or convince anyone to take side. There's still a lot to understand about this country, and I don't claim to be an expert. Please do your own research and come to your own conclusion. If you feel like you just don't agree looking at the thumbnail (which is fine anyway), please watch the video first and then comment with specificities and respect. Here's a little plea for empathy and an open mind. Thank you.:)
China's success has nothing to do with what you've talked about. China has succeeded because the USA decided they would be allowed to succeed in the hopes it would liberalize it's government. It did not. Now you will see the paper dragon burn. Most American companies have left they will never take Taiwan after what they saw happen to Russia. It is game over for all these house of card nations.
1. Intelligent Leadership to Try Capitalism 2. Pragmatic Capitalist Economic Policies 3. Chinese Culture (Hard Work within a Capitalist System) Your three points are agreeable. However, comparing them against capitalism as the reason for China's economic success today is fallible. Instead, they are factors in how China adapted to Deng's decision to put China on the path of capitalism. So, capitalism is the reason for China's economic success today. And the three you listed are the reasons why China so successfully adapted capitalism.
This is another good presentation (after I gave thumb up at "Why China Doesn't Identify with the West, explained".) Deng understood human psychology, so he set up his pragmatic policy "satisfy the common good first, then personal profit". I like your 3 perspectives to China success and I wish to commend on the "Chinese Culture". Today China gains enormous economic success, and precisely because of that, psychologically speaking, Chinese will become more arrogant and this will create a new culture that eventually destroys China. Today China CCP focuses on economic growth, but that is not a holistic approach. I suggest China should bring back the old China wisdom "Yellow Emperor's Inner Classic, 黄帝内经", (which is not just on health and well being, but treating life as a whole system towards well being of not just China but the whole world", a noble and compelling vision and to be understood by all 1.4 billion population.
I remember my mom said how China at that time really saved their money and so economical to build their country and people. Now we can see the difference. China becomes a compass to all aspects: economy, technology, education and many more.
Tears in my eyes watching this, Siming. Thank you so much. Having learned some history of China and visited Yunan in 2017, I've been telling people a very similar story to the one you give here - which, i would say, is well balanced and evidence-based. What constantly surprises me is the way people in the UK look at me and respond as though they think I have fallen for Chinese propaganda. The mainstream media in the West only know 3 things about China: Tiananmen Square; Hong Kong democracy and Uyghurs. I totally agree with you 3 main factors, the role of Deng Xiaoping, hard work etc. However, you have omitted another dimension: intelligence. On international scales, average western IQ is 100, while that in China is 105. Would you also agree that, when Deng gradually abandoned communist economics, the CCP reverted to traditional Confucianism which was still in the cultural memory?
Confucianism definitely is a factor, leaders gain huge fullfillment by doing good for the nation and the people but pragmatism(Deng's white cat black cat theory) and conservatism(Deng: cross the river by touching the stone) played huge role also China's system is considenly reforming, that flexability allows Chinese government adepts to the fast changing society even leading it and long term planning , people know that China is leading high speed rail and EV industry, but what people don't know is, the government started setting up for these industries decades ago. we have 5 year plan, 10 year plan, 50 year plan, even 100 year plan last, meritocracy, China's system produces best leaders for the job, just like how successful companies select their CEO, managers, only the most capable ones go to the top positions
IQ is a bogus, racialist argument. Both people on the Korean peninsula are the same people, but one group is a poor country, while the other one is rich. Stop trying to racialize China's success.
Great video, milady! So incredibly hard to summarise such a complex issue in 15 min, but you were able to do it. Congratulations! on your great skills. BTW, loved the ending - one of the best parts... thanks
*Actually, only the CPC & CCP have money through "state capitalism" by Nationalizing the the unicorn companies such as HuaWei (Hong Kong Stock market and Hong Kongers and Taiwanese are richer than chinese citizens). China was only able to achieve what it has from foreign investment and USA referral into WTO. C C P did not invent anything, no R&D costs, they stole and copied the west. This will be quickest rise and fall of any nation in history. Since C C P exported w u h a n f l u, nobody trusts C C P. High interest rates means the west is buying less products made in china*
You forgot, that deng xaoping visited Singapore in the late 1970’s and saw how, lee kuan yu transformed an island nation with no natural resources, into one of the most prosperous countries in the world.
As a person planning to teach ESL in Shanghai next year, I thoroughly appreciate the well articulated, well written and presented information. I am doing hours and hours of research preparing myself for this major life decision to move to China and teach. I realized when I started making more and more friends in China, that I really wasn't given a education in all my college years or high-school years for that matter about China or Chinas history. This is a welcomed supplemental piece of education to my already self started one including with the learning of the Chinese language. Thank you so very very much for your videos. You have another permanent subscriber. Xiexie Lan 🙏🏾
One of the biggest reasons for China's achievements so far: A leadership that despite all their faults have the balls to stand up and defend China's interests
@@bjrnhjortshjandersen1286 I wrote it's just one of the reasons why. And of course it's simplified. I'm not gonna write a whole book in a RUclips comment
1) competent leadership 2) realistic economic policy 3) Chinese culture 4) one party system : Western democracy with its multiparty system is inherently corrupt, wasteful, and divisive. Politicians are basically appointed into office or bought by wealthy corporations and individuals - the charade of the ballot box. Government policy pursues the interests of a few at the expense of the people. Politicians expediently exploit various groups against each other in pursuit of public office.
Very true. What I realised early in my working career was every Chinese wanted to be his own boss and worked very hard to achieve that. Another Chinese trait is frugality and saving for future and posterity. The part of good leadership who has the welfare of its people at heart. Chinese diaspora everywhere has succeeded economically. Humility is another Chinese trait which helped China's growth; humble enough to learn from others.
Offtopic: You could make a video for a layman, on some basics how to play that instrument. You have a talent to summarize complex things, thanks for the video.
China owes its biggest debt to Deng Xioping. Deng was a courageous leader , visionary and super smart! He knew what he had to do. Under various turmoil and Political faction, he stood his ground and maneuvered his country in the correct path. That is a leader that is rare to come by!
Maos major achievements were 3: 1) Ending the Civil War, 2) Attaining nuclear weapons, 3) opening relations with the USA. These 3 were the biggest factors that eventually allowed future leaders to reform and build up off of. (Minor other points: 4) Strong relations with Stanlinist USSR, 5) Getting the UNSC seat from ROC)
Excellent presentation! I also have to say that the Mao years were tumultuous, it laid the groundwork for the improvements that could be implemented from the 1980s.
*Actually, only the CPC & CCP have money through "state capitalism" by Nationalizing the the unicorn companies such as HuaWei (Hong Kong Stock market and Hong Kongers and Taiwanese are richer than chinese citizens). China was only able to achieve what it has from foreign investment and USA referral into WTO. C C P did not invent anything, no R&D costs, they stole and copied the west. This will be quickest rise and fall of any nation in history. Since C C P exported w u h a n f l u, nobody trusts C C P. High interest rates means the west is buying less products made in china*
THE CONTRIBUTION OF MAO WAS TO UNIFY CHINA. MINUS TAIWAN ISLAND/PROVINCE. BUT HIS GREAT LEAP FORWARD N CULTURAL REVOLUTION WERE DISASTROUS FOR CHINA. FORTUNATELY TENG, THE WISE, PRAGMATIC LITTLE MAN SUCCEEDED HIM. THE REST IS HISTORY.
Agree totally! China is continuing to evolve. China's achievements today is the result of the Mao years since the establishment of the People's Republic of China in 1948 - all the positive and negative experiences gained. China's strong advantage is that they are able to reform. No other country has conducted the amount of reforms as China?
Siming, very smart in choosing your topics. Keep up your good work. I hope more overseas Chinese of younger generation get to hear your voice and logic ❤
THANK YOU for such a unique explanation of China's rise! Mainstream media so often simplifies it without looking at the deeper reasons. The point about gradual practical economic policies was especially important. The local governments in China actually listen to the regular folks & experiment with local policies A LOT. Your second & third points really put into stark comparison why China succeeded while the USSR & India failed (India is catching up, though). I really couldn't help but clap at the end of the video 😂😂😂
love your thoughts and tunes! ive been preoccupied with china lately... there is so much misinformation. i hope everyone can just get along soon bc we have a lot of problems we can only solve together.
@@SimingLan I M A HALF CHINESE FILIPINO. I HAVE EXPERIENCED THE CHINESE CULTURE OF MY LATE FATHER. HARD WORK. THAT HAS BECOME MY HABIT OR CHARACTER. GET EDUCATED. I M NOW A CHEMICAL ENGINEER, N HAVE BECOME AN EXPERT IN AQUACULTURE. WHAT THAT CHARMING CHINESE LADY COMMENTATOR SAID IS ABSOLUTELY CORRECT.
Not just misinformation but propaganda. The western (mainly US) military industrial complex seeks to divide and rule in the same was as the old imperial industrial military powers did.
The humility showed by Deng Xiaoping, resulted in the reawakening of a great civilazation. Though I must say this progress was threatened to be derailed by the Tiananmen incident. By the way it was such a pleasure to enjoy your guzheng tune, like an ancient princess performing for the emperor. JK.
1 important point you missed is when China just open up in 70s, there are no investments from the west. The investors are mainly oversea chinese from places like hong kong, taiwan and south east asia countries. These initial investment are important to build up the system, infrastructures, human capital, which attracts multinational companies from the west to invest in China in 90s
I am really enjoying watching your presentations on China and how it pulled itself out of poverty and became a world power within a relatively short time. As an African, I think the continent has a lot to learn from China. I'd be interested to know a lot more about the specific policies and efforts that were made to lift over 800 million out of poverty within a couple of decades. This is indeed a major historical feat.
You have to keep in mind that Africa is still subject to western imperialism and while that is the case Africa will never prosper like it should. China was in the exact same position as Africa as a matter of fact, you should look into it! They did this by fighting back and taking back their homeland.
You have a textbook view of the proceedings but Great video. As an overseas Chinese watching China rise from rag to riches from the outside. The great change come about from a pure ideological communist approach to a pragmatic Chinese approach. Chinese communities all over the world have a pragmatic, hardworking, competitive culture. Overseas Chinese from all over South East Asia, Taiwan and Hong Kong helped China grew by setting up factories there, it wasn't altruistic or patriotic but to make money. My first experience with China was that the people were lazy, socialism has that effect. This gradually changed as the money flowed. But the big break came from the cold war, the US courted China to its side with relaxation of sanctions and isolation. The US won the cold war and China got a economic opportunity, a good trade. Unfortunately We have now come full circle with China back in another US trade blockade. China's leadership has not been the greatest and corruption is still a huge problem. The Evergrande crisis and the provincial bank run are evidence that Xi has to do more to clean up the leadership team. Chinese culture makes us good businessmen but also corrupt officials. Lee Kwan Yew recognised this fact and made sure that Singaporeans officials were paid as high as most corporate executives and you get fined for every infraction, even spiting chewing gum on the road. Hong Kong was a cesspool until the establishment of the ICAC. So, China made it mainly because of our culture, from my point of view and a bit of luck.
This is a great video. I subscribed 👍👍 All of what you mentioned are correct. The Hybrid system of centralised planning, capitalistic system, motivation and the hard working ethics of the Chinese. The success of post war Europe was primarily due to The Marshall plan and investments from America (and eventual domination).
❤ 🇨🇳 I wonder now how, if my father from Fujian, and elders who are from Fujian who came here to the Philippines are still alive... finding out how China looked now. I guess they would be teary eyed, full of happiness for Zhong Guo's 🇨🇳 glorious rise to economic power. They would have wanted to spend their last days back to the motherland.
I agree. Post-Mao CCP is probably the most competent governing entity humanity has ever produced. China is where it is today because of 40 years and counting of phenomenal leadership. Good video.
*Actually, only the CPC & CCP have money through "state capitalism" by Nationalizing the the unicorn companies such as HuaWei (Hong Kong Stock market and Hong Kongers and Taiwanese are richer than chinese citizens). China was only able to achieve what it has from foreign investment and USA referral into WTO. C C P did not invent anything, no R&D costs, they stole and copied the west. This will be quickest rise and fall of any nation in history. Since C C P exported w u h a n f l u, nobody trusts C C P. High interest rates means the west is buying less products made in china*
LONG LIVE CHINA. GOOD NOT ONLY FOR THE CHINESE PEOPLE, BUT ALSO FOR HUMANITY. BECAUSE THRU ITS BRI, CHINA IS USING ITS EARNED MONEY N HIGH TECHNOLOGY TO LIFT OTHER COUNTRIES OUT OF POVERTY.
Great Sharing from a different perspective. Also great comparison to show that it's not just simply one factor like large labour pool or having a lot of ports. Keep it up!
@@SimingLan U R CORRECT. AS U MENTIONED, INDIA HAS HUGH LABOR POOL. IT EVEN HAS THE ADVANTAGE THAT IT HAS BIGGER ARABLE LAND. BUT EVEN UP TO THIS DAY, EACH CHINESE HAS FIVE TIMES THE PURCHASING POWER OF EACH INDIAN.
Hello Siming Lan, a very interesting presentation, stressing some less mentioned factors in Chinese economic evolution. All economies world wide and societies are being challenged by dwindling ressources, climate change and environmental degradations. It would be interesting to make a summary of the current policies and actions in meeting these challenges. I am suscribing to your channel. Cheers Phil
My parents left Guangdong for Hong Kong at a young age. Later they left for America. All my life I felt a disconnect with China because of my family's horrible experiences under the communist regime. And having grown up in America I have a strong western identity. But in recent years I have learned so much about how China has transformed so completely. I am so proud of my people there, and I am looking forward to spending a lot of time traveling there someday.
"Democracy, Liberty, Equality, Rule of Law, Human Rights" The so-called "Universal values" in the West, There are five major products: 1. "Evil and Incompetent Politician"; 2. "Stupid and Ignorant Voter"; 3. "Filthy and Shameless Media"; 4. "Greedy and Ruthless Enterprise"; 5. "Hateful and Disorderly Society". The so-called "Universal values" in the West, Not "Christian values" at all! And It's not "Universal" even!
There are another type group of people are totally opposite compare with you. They came to the western countries after 90s and they had a peaceful life back in hometown of China. But that group of people hate China with no reason, they just hate everything that related to China, related to the communist party even the party didn't do anything to them.
If u can, do visit China. Do understand/learn Chinese language n civilisation n cultures. Thereon, u will appreciate them more, instead of one sided narratives by collective west MSMs or materials... To really appreciate real historical events n how China gets to present, understand historical facts etc....know the contexts n conditions then, are important...
😢@@gohsiewhau4819, Indeed, a lot of of Chinese crises and suffering were created by the invasion of the outsider forges. Looting, killing, occupying and stealing resources out China and it puts China over 200 years behind financially.
Excellent documentary! I must have watched it four times! You're not kidding about condensed. Also, beautiful gift of you playing music for us to share the Chinese culture instrument. ❤
make a video on the housing market plz, it really would help what a voice on the ground thinks about the chinese housing market and the crisis that seems to be looming.
MAYBE THAT IS EVIDENCED BY THE FACT THERE WERE ANCIENT CHINESE WHO HAD HIGH IQ. AS SHOWN BY THE FACT THAT THERE WERE MANY ANCIENT CHINESE INVENTIONS. SO THEIR DESCENDANTS INHERITED THEIR INTELLIGENT GENES.
I believe Chinese are hard working by nature but so is all of humanity and I don't think Chinese can be different. I have many Chinese, Indian, Black friends and they are all the same as me. Some are lazy and some are hard working. I am retired but I have to work or I don't feel good. It is built into the brain that you must work . Lazy people should work also but they are depressed and it is a depression that comes from laying around and doing nothing.
Personally, I think the primary reason for China success is the Chinese culture. This culture of hard work, ambition, success and money simply don't exist in other culture. For example : I personally experience a local people (non Chinese) who said after 5 pm, he stop selling gpods and go home although people keep buying after 5 pm. He will start selling tomorrow. In the Chinese culture, this is crazy. As long as people keep buying, the Chinese people will keep selling and make more money. The most obvious evidence is the success of many Chinese people around the world. They travell to other part of the world because of Great Famine. As a stranger which can't speak local language, they adapt, survive and then become more success than the locals. This Chinese success entrepreneur can be found in many part of the world, such as Malaysia, Singapore, Indonesia, Thailand, America, New Zealand, Australia, UK, etc. Their succeess don't depend on the local government (in many cases, the local government tend to suppress and bully the Chinese). This is why I said, the rise on China is mainly because of its culture, then supported by its government. Is that make sense?
China model of success depends on 1) political stability 2) oversea Chinese contributions 3) economic reforms 4) science and technology advanced 5) industrial reform 6) military advance 7) FDI
*Actually, only the CPC & CCP have money through "state capitalism" by Nationalizing the the unicorn companies such as HuaWei (Hong Kong Stock market and Hong Kongers and Taiwanese are richer than chinese citizens). China was only able to achieve what it has from foreign investment and USA referral into WTO. C C P did not invent anything, no R&D costs, they stole and copied the west. This will be quickest rise and fall of any nation in history. Since C C P exported w u h a n f l u, nobody trusts C C P. High interest rates means the west is buying less products made in china*
Your coverage of contributing factors was excellent, though I feel as if a fully fair presentation would include companion video covering some of the other factors which you chose to provide a greatly lessened air time. The emphasis on more positive elements of China's successes in recent decades presents a bit of an overly optimistic story. That's not to say that what you chose to cover is less important than the other factors - just that they are of somewhat similar importance to other major elements playing into China's economic rise which are popular for other commentators to emphasize. If I were to propose a further 3 factors which would be similarly worth of coverage, I would cite the following: 1. It's too much of a hand-wave to de-emphasize the role of market reforms in your presentation. In particular, FDI has been a game-changer for China in recent decades. The extremely substantial investment of commercial entities located in other nations into China's burgeoning manufacturing sector, particularly during the 90s and 2000s. This greatly accelerated the growth of China's large and fairly modern industrial base. 2. At-the-time favorable demographic trends, such that the number of children which each adult needed to raise was low in number for a large number of years. This enabled workers to conserve resources and prioritize productivity over child-rearing. 3. The phenomenal expansion of infrastructure which was accelerated during the immediate aftermath of the Great Recession. This enabled people and goods to move far more quickly and efficiently from one part of the country to another, and helped usher in a greatly-improved quality of life. Of the factors which I cited, 2 of them are looking increasingly ephemeral, but even with reduced foreign investment and unfavorable demographics, China now benefits from modern, extensive infrastructure, and I don't see demographic decline necessarily changing the aspects of Chinese culture which encourage hard work and education within practical fields. The next 3 decades don't look nearly as booming as the last 3, but if handled well, a transition into a stable (if perhaps a bit stagnant) modern economy is quite feasible. Still a very good presentation on the whole, and excellent English - though you may want to reduce your usage of the word "and" when giving a formal presentation. I hope you continue to provide more of your inside perspectives on modern Chinese culture, economics, and society in further videos! Subscribed.
Dear Miss Lan. Your voice and contribution is very valuable in these days. There are many misconceptions in the „West“ about China, that needs to be addressed. As a Swiss I always try to see both perspectives, and I see that you also enter both view points. A view point is not an opinion. Very happy to have discovered your channel, keep up your good work and stay happy and healthy.
There is only one thing I don't quite agree, the evaluation of Mao's contribution to China's modernisation, Mao's social restructure and social reform is the foundation for Deng's reform to be even possible, also China's first generation Industry which was built up during Mao's period with the help from the Soviet. Understanding how China was able to developed from such poverty background, you would wonder how come the leadership still had the courage to lead China without thinking maybe history was not planning to keep a space for us Chinese people, our future generation would be the vagabond of the would. For that, on behalf of our sons and grandsons and beyond, I'm truly grateful.
Thank you so much Siming Lan for sharing this very thoughtful and insightful perspective about China. Keep up the great work. I'm looking forward to more awesome videos from you.
One aspect missing from your otherwise thorough analysis was the MASSIVE transfer of technology from the West to China. Thanks to this technology transfer, China didn't have to spend decades reinventing the wheel, i.e. inventing their own industrial processes and high technology. By requiring Western companies that did business in China to "share" their intellectual property, local Chinese companies were able to easily appropriate and build on existing Western technologies, saving themselves decades and billions of dollars in research and development. China has now cornered the market on e-vehicles, space travel, mobile communications, artificial intelligence, etc., but all of this was made possible by a transfer of Western technology IN ADDITION TO cultural Chinese values like hard work, education, frugality and industrial habits.
@@magicyang8594 It might not have been "free", but they did not have to spend decades as well as billions of their own money in research and development. They were able to acquire Western technology for a fraction of its cost and then quickly mass produce it.
@@CurtisCT I am very helpless, my reply trigger keyword was cut off by the system. I feel sad for your Western perspective on China. You have been truly fooled.
Not very surprising. Japan did something similar during the early years following the Meiji Restoration and again after WW2. Obtain good examples from the West, copy them to death, then produce an original design using what was learned from the copycat period. China is doing the same thing, but from a bit closer to the curve.
youtube is crazy, i've been watching videos of china, either from foreigner of from the china media but i never saw you like since last week, and i've been doing this for like almost 5 years, seriously, you need to share your videos in a better platform, i hope chinese platforms can provide you a better appreciation!!!
I am of Chinese descent but never knew what that meant. Since I do not speak, read or write Chinese, did not feel connected to my roots for most of my life. But now I realise that I possess very Chinese DNA since I studied hard, worked hard, saved as much as I could, built a better future, was pragmatic, family oriented and proud to be successful. Must be the culture you mentioned.
It is always impressive to hear a Chinese perspective of corporate and economic authoritarianism as opposed to unguided Capitalism. It has tremendously contributed to the Chinese and world development and how it continues and develops is a subject no one can predict.
These argument is not wrong in some extent, but may be based on an distorted understanding of the history. The concrete industrial, miltiary, ideological, diplomatic and social foundation built up by Mao, others leader and the Chinese people before Economic Reform cannot be ignored. Without the first 30 years of hardwork, there will not be the later 30 years of success. Moreover, every leader worked his best to make the country adopt to the geo-political and internal environment at that time and pave the way for future development. Mao's and other leader's ideology are always the backbone of the CCP, and the economic policies are actually consistent at their underlying principle all the time. These can't be denied.
I partially agree with this analysis, but i think it leaves out several important elements. 1. On leadership, i mostly agree that the leaders were wise to turn things around after the issues brought about in the great leap forward. However, external factors that had virtually nothing to do with China's internal reforms, e.g. Nixon bringing China into the UN and raising its political clout to counter the USSR in the cold war, also helped to transform China into an acceptable country to associate with and trade with in the international order, i.e turning China into a politically powerful country. China wouldn't be as powerful were it not for such external factors. 2. On economic policy, three points. First, I think external factors actually account for most of China's progress. In the book you cite, how china escaped the poverty trap, the author actually states that it's quite possible that the leaders of China in the 1970s and 80s adopted Mao-era guerilla warfare flexibility, essentially enabling them to make painful changes necessary to achieve bigger goals further down the line. I am inclined to agree. In making changes to the broader economy that they disliked but considered necessary, i.e. becoming a bit more capitalist and opening up for foreign investment, they were able to convince foreign governments that China as a country was completely committed to having not just a liberalized, market based economy, but possibly even a liberal, democratic government in the future. China let these delusions play out while absorbing foreign investment and using this new capital to fuel its economic rise. Chinese leaders' flexibility was a big reason foreign capital was drawn to China, but without that capital, China's economic reforms alone would likely have changed little about the country in terms of its power. Second, i would strongly argue that the Chinese economy is still highly state-controlled, with only a veneer of privatization or decentralization. China's legal system formally states that all private Chinese companies must comply with any and all government mandates, including mandates to help weaponize their products against China's adversaries and steal IP from foreign companies doing business with Chinese companies. This has been the law on paper since the late 2010s, but it has been the reality in practice for decades. There is therefore no real private enterprise in China unless the Chinese government allows it. The moment the gov changes its mind, it will crack down hard on whatever industry it has on its kill list, e.g. the tutoring and tech crackdowns over the past few years. Third, the government's control of the economy has severely hampered China's organic growth, indirectly decreasing its power. As you point out, it's supposedly local governments that have the power to engage in experiments in economic policy and act as decentralized economic hubs. However, due to the stringent economic growth numbers that the national government demands local govs hit, the local govs are not incentivized to take real risks that could cause big organic growth or result in big declines - all local govs are incentivized to make growth numbers good, whether they are real or not. All local govs therefore spend much of their time and money appeasing the central government by diverting funds to useless projects that boost growth numbers and are risk free on paper. Unfortunately, they are also inorganic and are not productive to society at large. Think of China's "ghost cities" with no occupants built on the outskirts of major hubs, and China's trains to nowhere. These are examples of inorganic growth that are a ticking time bomb - once the central government is unwilling or unable to prop up these artificial numbers and growth rates, and the lack of real productivity from these projects becomes inescapable, China's economy will be revised downward massively in the international finance world. In essence, China's economy is not just centralized, but is on track to expose China as much less powerful economically than it appears. 3. On Chinese culture, two points. First, the drive to "be ambitious and hardworking", i.e. grind oneself into the ground, studying and working day in and day out under the 996 schedule, is only a driver of economic success so long as other important economic elements are in place. Things like foreign investment, job opportunities, and standards of living have to continue to increase for the workaholic culture to fuel more growth and make China powerful. However, these economic elements are actually decreaseing. Foreign investment in China is drying up, youth unemployment in China is sky high and rising, and the housing crisis in China is destroying Chinese citizens' net worth and consuming much of their wealth and incomes (since in China the only way to ensure social/romantic desireablity and preserve the value of capital has historically been to buy property, with all the mortgage payments that entails - not great when property prices are falling). Add to these issues the fact that China has essentially a caste system that prevents people born in rural areas from rising up the social or economic ladder, and restricts educational opportunities for them and their kids, and the prospect of seeing increasing standards of living in the foreseeable future seems out of reach for many Chinese people. Lifting people out of poverty is great, but relative social advancement is what citizens want next, and it doesn't appear likely to happen. Without such advancement, consumption may stagnate, and China's economic power may stagnate too. Second, the workaholic culture of China is very demoralizing. People did not evolve to work all the time; relaxation is necessary for human creativity and flourishing, and the Chinese/Japanese/Korean workaholic culture is much worse for citizens and families at than a more relaxed approach. This added chronic stress on the populace will not strengthen the country, since chronic stress can spiral into a range of psychological and physical problems later on down the line. Healthy population, healthy nation; healthy nation, powerful nation. In short, I think more credit needs to be given to external forces that made China powerful. I also think we need to acknowledge that those same external forces, and a few internal forces, appear to be reversing the gains in Chinese power.
I agree. Didnt CCP take down Jack Ma founder of Ali Baba after he complained about regulations. I don't see how they are going to get to 4th industrial revolution without any multinationals. They just became a dumping ground for western manufacturing which will stop as these companies go to even cheaper labor markets.
I love your videos. I am an academic economist delighted to see how poverty is dissappearing all over the world. To your reasons for chinese growth I would add international trade and constant population. When I was born, Spain was a poor country that during 1960-75 grew faster than anyone else in the world except Japan. And the reasons were close to the ones explaining chinese growth. In our case population control was achieved by sending 2 million spaniards to work abroad, specially Europe. The good side of this was that in 1975 the Spanish economy was more integrated in the EU than the italian so to continue with a dictatorship was unfeasible. Growth continued with democracy at a slower pace but stopped in 2008.
Regarding why China can develop, the UP owner has overlooked one of the most important reasons. The reason is: Chinese society was completely transformed by Mao Zedong, the landlord class was eliminated, and the land revolution was carried out, which is equivalent to reinstalling a system, This is the basic condition for success. Without this condition, if you continue to allow the landlord class to occupy a large amount of social resources and control the lifeline of the country, you will not be able to carry out any reforms. India's independence did not completely transform the entire society. The caste system, the landlord class, and the land revolution did not exist, so India cannot be reformed. If India wants to develop, it needs a Mao Zedong to reinstall the system of the whole society. Now the system in India is not working, and it will often crash.
@@dawsame5423 Mao's contribution to the rise of China is undeniable but at the same time he had made his mistakes. History is for learning and those who comprehend the multiple underlying factors will gain the most. Emulating single factor(s) will most likely resulting in failures.
In term of Spain integration helped greatly but in terms of Russia did not. I am afraid that China now moves to more authoriterian and hostile to the West regime:( Anyway thanks for very interesting note.
Hmm... I understand there are time constraints, and the video was not meant to be a comprehensive lecture. But still, I think it should at least be mentioned that the Mao era was absolutely necessary to build the foundation for Deng's reforms. China's rise would not have been possible without the drastic rise in life expectancy, health and literacy under Mao, and it would not have been possible without the industrial base built in the Mao era. On top of that, China would have found it much harder to lift hundreds of millions of people out of poverty without the land reforms. On the last point a direct comparison can be made with India.
You are right about human capital and coastal cities. Disappointed that you failed to acknowledge that it was largely the result of the worldwide trading system put into place following WW2 and innovations such as those in shipping developed afterward. Pre-WW2, it would have been difficult to import ore from Brazil to say make steel, import bauxite from Australia for aluminum and far fewer customers had the free trading system not been implemented. I'm sorry, but US, Europe and even Japan and Taiwan deserve credit in addition to the hard work of Chinese citizens who were finally free to pursue capitalist talents following Deng taking power. It's obviously a complicated set of events but you give far too much credit to the government which basically finally got out of the way of the Chinese people. Would add that hard work and commitment to education is close to a universal value. India has been held back because their government still interferes too much and cultural traditions that impede progress are still in place.
I would argue that the trading system established after ww2 is not a major factor in China's success. The reason is that many other countries were using the system, including countries that were much stronger & wealthier than China when CCP came in power, but only China managed to grow in such speed and consistency.
@@kennyng8335 As it is an "alternative history", one cannot say with certainty that another system might have emerged that allowed it but I doubt it. Many countries have done what PRC has done. South Korea, Japan, Taiwan, and to an extent Brazil (many years ago). Japan obviously had some advantages as they were industrialized prior to WW2 and Germany and other EU countries grew at exceptional rates after WW2 too but they were more like Japan. SK, Taiwan and Brazil were farming economies that did (and still do) very well but their growth rates came down and it is largely inevitable that this will happen to PRC too. Now the population of China makes it exceptional but India is only country in that category so there are no comparisons.
@@jeffboyd9301 Guess the phrase "alternative history" already reveal your true intention here. China's growth is totally beyond those countries that you mentioned, those are one hit wonder & doesn't last long, the key point here is "speed & consistency" which you choose to ignore.
@@kennyng8335 PRC fell far behind during Civil War and Mao years so if you look at data since 1980, yes I'd agree PRC blew other countries out of the water but the other Tigers had many years of very high investment-led growth that were astounding. In 2020 GDP per capita data from ChatGPT was. PRC - $11K, SK - $31K, Taiwan - $26K, Japan $41K. Investment-led growth eventually hits a wall as returns on investment historically have declined once a country builds out infrastructure and has to rely strictly on productivity growth. I have no idea when China will hit the wall. Perhaps it will grow at 9-10% for many years into the future and have GDP comparable with or exceeding other Tigers. Only time will tell. In the meantime, I'll bet certain areas of China are already on par, or close to Asian Tigers as GDP growth has varied from region to region far more than other countries.
Hi Siming, I used to watch your videos when at college in the UK, exploring Britain's culture, literature, countryside, bicycling around. They were quite delightful. Reminded me of my long ago youthful curiosity. I think your reporting from China is a breath of fresh air and I hope you can avoid becoming a propoganda arm of the CCP. If you can hew to an independent path all will benefit. Avoiding geopolitics might be wise. It is difficult in the West, particularly in Anerica, to get a clear view of China. Some, who make millions from doing business, give one view. Others in government, especially the foreign policy establishment, provide an increasingly negative view. Balance is lost. Given my long years studying China, I hope for balanced understanding. Very difficult to achieve. But I know you are doing your best.
During Chairman Mao china manufactured it's own cars,home appliance. Chairman Mao always told that china must excel on science and technology,china must build a strong military etc... Economic development was good but let's not forget science and technology as before the western countries existed,china was a country who excel on science and technology and many ancient Chinese inventors invented different tools which was being used or copied by some western countries
YES, U R CORRECT. IN THAT THE ANCIENT CHINESE INVENTED MANY THINGS THAT ADVANCED THE TECHNICAL KNOW HOW OF HUMANITY. LIKE THE COMPASS, THE GUN POWDER, PAPER MAKING. IN FACT, CHINA WAS THE FIRST COUNTRY TO PRINT PAPER MONEY. THE METHOD OF PRINTING. INCLUDING MOVABLE TYPE,. SILK MANING, ETC. BUT MAO WAS NOT A GOOD SCIENTIST. DURING THE SO CALLED GREAT LEAP FORWARD, HE ENCOURAGED EVERY HOUSEHOLD TO SMELT IRON. HAHA.... NOW CHINA IS THE GREATEST STEEL MAKER ON EARTH. MAO MOBILIZED THE PEOPLE TO ERADICATE THE SPARROW, WHICH HE SAID THEY EAT GRAINS. BUT AFTER MOST SPARROWS WERE ELIMINATED, INSECTS MULTIPLY TO CAUSE MORE HARM. IT IS AFTER MAO WAS GONE THAT CHINA BECAME SCIENTIFICALLY ADVANCED.
Thanks again Siming, One of the repeated mistakes I hear is as Deng said "he did not want to hear exaggerated reports of progress" as that was a problem of the Great Leap Forward - but that's what is happening again as local governments are often 'afraid' to give true reports of anything they are failing at achieving, and 'afraid' not to succeed due to potential punishment' from Central Govt. - COVID 'success' being an example
Until 2018-19 many people of world (incl me) were mesmerized by China's rise, it was inspiring and many of us cheered it as an example for our native countries. But then these happened: 1) way China handled Corona virus, 2) Real estate and debt crisis, 3) way CPC/CCP bullied nations like Lithuania, Australia....., 4) Tanks being brought against their own people who just want their money from bank, 5) Jack Ma one of our most inspiring leaders totally silenced, 6) Rich Chinese fleeing their wealth out of China, 7) Checking cellphones (a personal device) in subway stations to see what app being used (confirmed by a fellow colleague), 8) bringing barbed cudgels in a zone of zero weapons....on and on and on.... I have now heard 3 trustable Chinese colleagues/acquaintances say things in private that they will never dare to say in public (nor would I dare to say it for them). China is one of the greatest nations, a true great civilization, but its ruling political elite suddenly have started doing things that do not appear cool any more.
On a less theoretical level, pragmatically, I experienced some aspects of China's transformation that is more telling. My first trip to China, business, took me to Shanghai in the early eighties and then Westward into a region that previously was off-limits to foreigners for military reasons. My spouse was with me and as we traveled from the airport to a 'Western' hotel we observed people in standing in long lines in their underwear. Driving along to the head of the line where a bucket of water was poured over the person's head and they soaped up. Stepping forward, more water was poured over them to rinse off. My spouse leaned towards me saying, "remember when dealing with these people that all they have and value is each other". That was a keen observation of the reality then. Later, 20 years, I can confidently say that Chinese people do not care about each other and extreme mutual exploitation is the norm. In other words, as Siming Lan says, very competitive. Questioning one government official about how he became a leader he had a fascinating story. One day some people came to his "village" and selected high school students who would be sent to London for university studies and then would return to be assigned official roles in local government. His parent had little formal education yet he became a significant person. This group of students returned from university with a noble mission. I experienced one business associate in their transformation from small local company to a global force. His business was located near Shanghai and on one visit I was invited to go to their new factory location near Shenzhen. Arriving there I saw an immense unoccupied area with just a few smallish buildings surrounded by a tall fence. Ten years later that unoccupied area was a bustling city. The company make no profit on their product, and I was told that they lose money on their product. All the while losing money they pushed onward with business expansion. Yet, the company was very profitable all the way! When being given the land for their factory it included the entire barren area. Their job was to create a city employing hundreds of thousands of people. These people needed housing, entertainment, education, restaurants and all the other shops normal to a city. While the company sold products at a loss, they made their money on rents and other local economic activity. Recently, in another city further, West of Beijing, I was advised by my host to move my car to a better lit area and also that it was not safe to walk about at night. Very surprised by this advice he went on to explain that there has been so much disruption and exploitation in China that the old community ties no longer influenced behavior. That breaking into automobiles and stealing from others is common. People are driven to get money. He also explained that the government is now working to restore humanity in China. Of course, other government entities are pushing more aggressive development. I have a hundred such stories because I am keenly interested in the stories of other people. It used to be, in my time (now retired), that doing business in China first entailed becoming friends. Young people are now very willing to lie to make business. Acting friendly and courteously is just that, an act. Once people worked hard for their communities because of a heartfelt desire to do something well for everyone. Now they work hard to keep what they have and to gain more. The first is a virtue and the second is a corruption at the core of their being. China traded its beautiful sense of friendship, what is mine is yours, for mercenary disregard. Is there a way back? Friendship and trust is now very much localized to one's own small range of associates.
Promoting social value has to be as important as making money. It is a challenge that the government and educational organizations have to constantly remind the general population.
Great video. I am old enough to recall that China was poorer than the African continent in the late 1970's and i saw the first Chinese students and academics coming to western Europe. China got investments - Africa got aid. We now know how these two different approaches worked out in the long run. As to the 'working hard' dogma - the poorest people in the world generally work the hardest. I think 'working smarter' is a much better path to take
An unbiased analysis of the endeavors of the Chinese populace collectively, to bring China out of poverty and supercharge their economy. You've overlooked one major point however. The enactment by President Bill Clinton of 'Most favored status' in trade with the USA. This allowed for an open market for goods and services that increased a positive trade balance fivefold. Needless to say, your body of work is intellectually concrete and very refreshing. I enjoy them. We enjoy the same status here in Canada.
Another good review. Just few points. 1) Shock Therapy has only been used in East European and former Soviet countries with success in Poland (mainly due to West Financial Support) and huge disaster in Russia. The Economic policies you described are most commonly called Washington Consensus. 2) China has several big historical problems. One is at the end of a dynasty, the Land were concentrated in few big landlord. In a bad year, this directly led to peasant rebellion. So CCP made the land public-own to save this issue. However this led to no-incentive to work-hard. This is partially salved by Deng's land reform, Peasant has the using-right of the land, but can't buy or sell the Land. This led to other issues, such as peasant abused the land since they can use it, but not own it for future (villages will redistribute the land after population change).
THE STATE OWNS THE LAND. LEASED TO INDIVIDUAL FARMER-FAMILY. THEY STILL HAVE TO SELL ENOUGH OF THEIR PRODUCE TO THE STATE AT CENTRALLY PLANNED PRICE. BUT AFTER THE QUOTA IS FULFILLED, THE FARMER CAN SELL THE EXCESS AT FREE MARKET PRICE. THIS GAVE THE FARMERS INCENTIVE TO WORK HARD TO PRODUCE MORE. UNLIKE THE PREVIOUS COMMUNE SYSTEM OF FARMING. IT GAVE NO INCENTIVE FOR INDIVIDUALS TO WORK HARD. SO LAZINESS PREVAILED, N POVERTY REMAINED.
Watch and learn. How many are willing to view the world in this way? "White cat or black cat what matters is if it catches nice". Think about it. Enjoyed the vlog.
Thanks for the explanation of the rise of China today at a level of granular detail. I'm an ex patriot Chinese in Australia where my parents "escaped to" after WW2. The media here in Oz is heavily biassed affairs China as everywhere in the West. Only from March 2023 did I suddenly wake up to the fact I was held in a Western media bubble.
China had tremendous growth because it started off from such a dismal state , so had an extreme amount of upside potential. They did this because the west gave them the technology and know how. They also stole and continue to steal IP and technology without paying for it. That amounts to a huge savings for China. All of this technology transfer has peaked and now the growth in China will drop to 1to 3% like all other developed economies. China will do worse because of the communist government. These governments can't innovate and try new things. They can only copy the ideas and strategies of democratic countries. I don't think China wants to copy everyone else forever. India is different and it has enormous room for upside growth and will probably eventually have a bigger economy than Chinas, This is simply because it has a democratic system. The democratic system allows experimentation and failures and searching for the best policy. China can only copy what other countries do because the government cannot innovate. This is the heart of a communist system. They adopted capitalism but they have no idea what to do next and that is the problem with all communist systems. The Chinese government does not have the luxury to fail and survive. A democratic government can have failures and continue on with a new government.
@@mohibquadri4053 Hey you are fancy with the scrabble Demo crazy. Yes the idea is too keep all leaders out of power for more than 4 years so you don't end up with wack jobs like Hitler, Putin and Xi. Now a lot of the rest of the things you say are correct but your problem is the same as the problem with central planning. Communism is a government that is centrally planned and most also have centrally planned economies. No one knows what the future will bring. That is why stock markets work and why the free markets work. No one can figure out the long term. You can't focus on long term problems the way the communists do because the long term problems change and they change quickly. A problem one day can vanish the next day with a new invention. This is why communism fails. The Soviets planned for things that they didn't have to plan for and wasted time and money. Democracy is the free market for the government. China is stuck. The switch to capital markets helped immensely but it is at a dead end. China going crazy and building apartments for people and expanding infrastructure and it could all backfire. Think about this building a huge railway to move people and then poof, everyone stays home and works from home. The railways are a total waste in this scenario. It is very easy to see this happening. You use robots controlled by people in all the factories so you never leave your home, just put on a gamer visor and hand controls and go to work from home at 8 am sharp everyday. No need for trains. Understand how inflexible the Chinese system is now ? This is why it always failed in the past. The fixation on leadership and the love for a leader is a very dangerous thing and it always ends in millions of people dead. There are millions of qualified people in China that can run the government and to keep one guy in there is lunacy. Democracy has all kinds of problems like you say but so does the free market and people go bankrupt and commit suicide and fail etc. It is by design that people can fail, and it is by design that the government can fail and get voted out. So China should do what they do good and steal things and ideas. Steal the idea of democracy and use it . You do realize that inside of democracy you can have a communist party and government ? Canada has a communist party . They have never been elected but they could be elected , if the people want it. So why not start off with a multi party system with a large communist party in control at the start and then slowly try some different parties if you are afraid of making the leap to democracy. This is what I see a a big problem in places like china, the people are fearful.
@@pierrecurie What does India have to be saved from ? Eventually countries over the world will have stable populations and growth will be zero or stable at zero. This is what the goal is because once an economy is mature the growth should be zero. I checked India and China and they both have about the same production in food to feed their population. Both countries are depleting the ground water and are unsustainable. China is dry as a bone now but India will have problems after the glaciers all melt and then the rivers will dry up. I predict large migrations to Russia , which is half empty. Russia and Canada are both in good positions because the weather is warming up and -40 degrees where I am is not pleasant and slows everything down. If it warms up enough we could produce two crops a year instead of one and thus double the output. China has a problem with infrastructure and India also has a building problem. The nice new shiny buildings and transport, rails and road are disintegrating due to severe corruption and very very poor building materials and paying off the building inspectors. India is also bad but on nothing like the scale in China. So what I don't understand if the central government is working so well and can do things in times spans 1/3 of what it takes in Canada , how can they not make sure the construction is good and safe. I went to Guangzhou by accident. My layover was 15 hours and the Chinese airline offered me a free room at a hotel, so I saw the city. I would not eat anything because in China people scoop debris from the sewers in the street and clean it and boil it to extract oil. This oil comes mostly from cooking but is loaded with very bad chemicals that cause cancer and other problems. This oil is then sold and mixed in with other oils and sold to restaurants and stores. It is called gutter oil. I would like to go back to China to visit but I would have to bring all my own food , so I won't go until I know for sure this oil is not sold. So how does the central government allow such horrible things to happen ? There is no control at all and it is a free for all. If there were free speech and a Democratic government with all its people in society feed into it , this kinds of things would never happen. Check RUclips, it seems most buildings in China are what they call Tofu Deng. You see them collapsing everyday. In 10 years there will only be ruble left. Maybe China is the case of selling the soul to the devil and when the clock hits midnight everything will disappear.
Sure, sometimes it is best to make a clear decision instead of constant arguments. Depends on situation, like in ancient Rome, when they elected dictators for a set amount of time in case of war... Until one of them proclaimed himself a caesar. China had opportunity to develop further. But authoritarianism has an inherent tendency to spiral out of control, while democracy has tendency to self correct - there needs to be a major disturbance for it to fail, like sudden influx of migrants, or too much rigidity in system (USA).
@@martinforro5696 I totally agree with your conceptualization. It is difficult to form of a goal or target oriented authoritarianism which is still evaluated and scrutinized because powerful people usually want to stay in power. But China at least in theory has strayed away from that with 2 term limits of Presidents
I see there's some misinterpretation, so I thought I'd make a disclaimer here. I made this video in response to the mainstream argument that China's economic success is because it adopted 'capitalism' (opening up its economy, allows private companies to make profits, and lessening state control), which I acknowledged in the video is a big part of its success. But I think it's a bit oversimplified.
There is some nuance to it (how China changed and reformed) and I felt that could help people who are curious about China's system gain a better understanding. I am in no way trying to promote any political viewpoints or convince anyone to take side. There's still a lot to understand about this country, and I don't claim to be an expert. Please do your own research and come to your own conclusion.
If you feel like you just don't agree looking at the thumbnail (which is fine anyway), please watch the video first and then comment with specificities and respect. Here's a little plea for empathy and an open mind. Thank you.:)
China's success has nothing to do with what you've talked about. China has succeeded because the USA decided they would be allowed to succeed in the hopes it would liberalize it's government. It did not. Now you will see the paper dragon burn. Most American companies have left they will never take Taiwan after what they saw happen to Russia. It is game over for all these house of card nations.
1. Intelligent Leadership to Try Capitalism
2. Pragmatic Capitalist Economic Policies
3. Chinese Culture (Hard Work within a Capitalist System)
Your three points are agreeable. However, comparing them against capitalism as the reason for China's economic success today is fallible. Instead, they are factors in how China adapted to Deng's decision to put China on the path of capitalism.
So, capitalism is the reason for China's economic success today. And the three you listed are the reasons why China so successfully adapted capitalism.
@@jckbquck State capitalism, to be exact.
This is another good presentation (after I gave thumb up at "Why China Doesn't Identify with the West, explained".)
Deng understood human psychology, so he set up his pragmatic policy "satisfy the common good first, then personal profit".
I like your 3 perspectives to China success and I wish to commend on the "Chinese Culture".
Today China gains enormous economic success, and precisely because of that, psychologically speaking, Chinese will become more arrogant and this will create a new culture that eventually destroys China.
Today China CCP focuses on economic growth, but that is not a holistic approach. I suggest China should bring back the old China wisdom "Yellow Emperor's Inner Classic, 黄帝内经", (which is not just on health and well being, but treating life as a whole system towards well being of not just China but the whole world", a noble and compelling vision and to be understood by all 1.4 billion population.
@@ut360q agree on the part on arrogance... great is the impediment to greatness
I remember my mom said how China at that time really saved their money and so economical to build their country and people. Now we can see the difference. China becomes a compass to all aspects: economy, technology, education and many more.
Tears in my eyes watching this, Siming. Thank you so much. Having learned some history of China and visited Yunan in 2017, I've been telling people a very similar story to the one you give here - which, i would say, is well balanced and evidence-based.
What constantly surprises me is the way people in the UK look at me and respond as though they think I have fallen for Chinese propaganda.
The mainstream media in the West only know 3 things about China: Tiananmen Square; Hong Kong democracy and Uyghurs.
I totally agree with you 3 main factors, the role of Deng Xiaoping, hard work etc. However, you have omitted another dimension: intelligence. On international scales, average western IQ is 100, while that in China is 105.
Would you also agree that, when Deng gradually abandoned communist economics, the CCP reverted to traditional Confucianism which was still in the cultural memory?
Confucianism-based economy system, Is this term for current CCP economy?
Confucianism definitely is a factor, leaders gain huge fullfillment by doing good for the nation and the people
but pragmatism(Deng's white cat black cat theory) and conservatism(Deng: cross the river by touching the stone) played huge role
also China's system is considenly reforming, that flexability allows Chinese government adepts to the fast changing society even leading it
and long term planning , people know that China is leading high speed rail and EV industry, but what people don't know is, the government started setting up for these industries decades ago. we have 5 year plan, 10 year plan, 50 year plan, even 100 year plan
last, meritocracy, China's system produces best leaders for the job, just like how successful companies select their CEO, managers, only the most capable ones go to the top positions
作为一个中国人，我对天发誓，89年政治风波，新疆维吾尔族，民主这些西方主流媒体全是假的。
至于中国成功的原因在于：实事求是，实践是检验真理的唯一标准。
希望您有一天能来中国，亲自戳穿那些西方媒体的谎言。
中国成功的秘诀：
实事求是@@dawsame5423
IQ is a bogus, racialist argument. Both people on the Korean peninsula are the same people, but one group is a poor country, while the other one is rich. Stop trying to racialize China's success.
Great video, milady! So incredibly hard to summarise such a complex issue in 15 min, but you were able to do it. Congratulations! on your great skills.
BTW, loved the ending - one of the best parts... thanks
Your Arguments are very well thought through and fact-based👍
thank you!
*Actually, only the CPC & CCP have money through "state capitalism" by Nationalizing the the unicorn companies such as HuaWei (Hong Kong Stock market and Hong Kongers and Taiwanese are richer than chinese citizens). China was only able to achieve what it has from foreign investment and USA referral into WTO. C C P did not invent anything, no R&D costs, they stole and copied the west. This will be quickest rise and fall of any nation in history. Since C C P exported w u h a n f l u, nobody trusts C C P. High interest rates means the west is buying less products made in china*
I appreciate your video, you're very talented. Keep going, I want to see your channel grow!
hi there, thanks for the love :)
You forgot, that deng xaoping visited Singapore in the late 1970’s and saw how, lee kuan yu transformed an island nation with no natural resources, into one of the most prosperous countries in the world.
As a person planning to teach ESL in Shanghai next year, I thoroughly appreciate the well articulated, well written and presented information. I am doing hours and hours of research preparing myself for this major life decision to move to China and teach. I realized when I started making more and more friends in China, that I really wasn't given a education in all my college years or high-school years for that matter about China or Chinas history. This is a welcomed supplemental piece of education to my already self started one including with the learning of the Chinese language. Thank you so very very much for your videos. You have another permanent subscriber.
Xiexie Lan 🙏🏾
One of the biggest reasons for China's achievements so far:
A leadership that despite all their faults have the balls to stand up and defend China's interests
Maybe a bit too.....simplified.
@@bjrnhjortshjandersen1286 I wrote it's just one of the reasons why. And of course it's simplified. I'm not gonna write a whole book in a RUclips comment
@@johnyossarian9059 Maybe a chapter would do.
A great one line description.
@@bjrnhjortshjandersen1286 some people need a whole book
I am now a fan of your videos and articles!
Very insightful and well explained!
1) competent leadership
2) realistic economic policy
3) Chinese culture
4) one party system :
Western democracy with its multiparty system is inherently corrupt, wasteful, and divisive. Politicians are basically appointed into office or bought by wealthy corporations and individuals - the charade of the ballot box. Government policy pursues the interests of a few at the expense of the people. Politicians expediently exploit various groups against each other in pursuit of public office.
I am so happy and proud that the Chinese people could stand up to rebuild their country and make huge progress in the economy. I salute you.
Very true. What I realised early in my working career was every Chinese wanted to be his own boss and worked very hard to achieve that. Another Chinese trait is frugality and saving for future and posterity. The part of good leadership who has the welfare of its people at heart. Chinese diaspora everywhere has succeeded economically. Humility is another Chinese trait which helped China's growth; humble enough to learn from others.
Offtopic: You could make a video for a layman, on some basics how to play that instrument. You have a talent to summarize complex things, thanks for the video.
China owes its biggest debt to Deng Xioping. Deng was a courageous leader , visionary and super smart! He knew what he had to do. Under various turmoil and Political faction, he stood his ground and maneuvered his country in the correct path.
That is a leader that is rare to come by!
Maos major achievements were 3: 1) Ending the Civil War, 2) Attaining nuclear weapons, 3) opening relations with the USA.
These 3 were the biggest factors that eventually allowed future leaders to reform and build up off of.
(Minor other points: 4) Strong relations with Stanlinist USSR, 5) Getting the UNSC seat from ROC)
开国时期的一边倒，获得苏联的支援，建立工业基础，两弹一星，三个世界的划分，
Totally agree with your assessment. Good job in articulating it so well.
Thank you another great video, always call a spade a spade. Hard work, smart decisions, no wars and no corruption are the ingredients of success
Excellent presentation!
I also have to say that the Mao years were tumultuous, it laid the groundwork for the improvements that could be implemented from the 1980s.
*Actually, only the CPC & CCP have money through "state capitalism" by Nationalizing the the unicorn companies such as HuaWei (Hong Kong Stock market and Hong Kongers and Taiwanese are richer than chinese citizens). China was only able to achieve what it has from foreign investment and USA referral into WTO. C C P did not invent anything, no R&D costs, they stole and copied the west. This will be quickest rise and fall of any nation in history. Since C C P exported w u h a n f l u, nobody trusts C C P. High interest rates means the west is buying less products made in china*
THE CONTRIBUTION OF MAO WAS TO UNIFY CHINA. MINUS TAIWAN ISLAND/PROVINCE. BUT HIS GREAT LEAP FORWARD N CULTURAL REVOLUTION WERE DISASTROUS FOR CHINA. FORTUNATELY TENG, THE WISE, PRAGMATIC LITTLE MAN SUCCEEDED HIM. THE REST IS HISTORY.
Agree totally! China is continuing to evolve. China's achievements today is the result of the Mao years since the establishment of the People's Republic of China in 1948 - all the positive and negative experiences gained. China's strong advantage is that they are able to reform. No other country has conducted the amount of reforms as China?
@@marlyntyzzer3919In Western so called democracies, only the party change but policies remain the same
Siming, very smart in choosing your topics. Keep up your good work. I hope more overseas Chinese of younger generation get to hear your voice and logic ❤
China is truely a miracle . Deng xiaoping is definitely my inspiration.love from india.
Btw you are very beautiful.
THANK YOU for such a unique explanation of China's rise! Mainstream media so often simplifies it without looking at the deeper reasons. The point about gradual practical economic policies was especially important. The local governments in China actually listen to the regular folks & experiment with local policies A LOT. Your second & third points really put into stark comparison why China succeeded while the USSR & India failed (India is catching up, though). I really couldn't help but clap at the end of the video 😂😂😂
love your thoughts and tunes! ive been preoccupied with china lately... there is so much misinformation. i hope everyone can just get along soon bc we have a lot of problems we can only solve together.
hi there, thanks for the comment! yes i agree :)
@@SimingLan I M A HALF CHINESE FILIPINO. I HAVE EXPERIENCED THE CHINESE CULTURE OF MY LATE FATHER. HARD WORK. THAT HAS BECOME MY HABIT OR CHARACTER. GET EDUCATED. I M NOW A CHEMICAL ENGINEER, N HAVE BECOME AN EXPERT IN AQUACULTURE. WHAT THAT CHARMING CHINESE LADY COMMENTATOR SAID IS ABSOLUTELY CORRECT.
Not just misinformation but propaganda. The western (mainly US) military industrial complex seeks to divide and rule in the same was as the old imperial industrial military powers did.
The humility showed by Deng Xiaoping, resulted in the reawakening of a great civilazation. Though I must say this progress was threatened to be derailed by the Tiananmen incident.
By the way it was such a pleasure to enjoy your guzheng tune, like an ancient princess performing for the emperor. JK.
1 important point you missed is when China just open up in 70s, there are no investments from the west. The investors are mainly oversea chinese from places like hong kong, taiwan and south east asia countries. These initial investment are important to build up the system, infrastructures, human capital, which attracts multinational companies from the west to invest in China in 90s
I am really enjoying watching your presentations on China and how it pulled itself out of poverty and became a world power within a relatively short time. As an African, I think the continent has a lot to learn from China. I'd be interested to know a lot more about the specific policies and efforts that were made to lift over 800 million out of poverty within a couple of decades. This is indeed a major historical feat.
You have to keep in mind that Africa is still subject to western imperialism and while that is the case Africa will never prosper like it should.
China was in the exact same position as Africa as a matter of fact, you should look into it! They did this by fighting back and taking back their homeland.
Really informative and interesting video! Keep it up! Subscribed🤗
thank you Haakon!
You have a textbook view of the proceedings but Great video.
As an overseas Chinese watching China rise from rag to riches from the outside. The great change come about from a pure ideological communist approach to a pragmatic Chinese approach. Chinese communities all over the world have a pragmatic, hardworking, competitive culture.
Overseas Chinese from all over South East Asia, Taiwan and Hong Kong helped China grew by setting up factories there, it wasn't altruistic or patriotic but to make money. My first experience with China was that the people were lazy, socialism has that effect. This gradually changed as the money flowed.
But the big break came from the cold war, the US courted China to its side with relaxation of sanctions and isolation. The US won the cold war and China got a economic opportunity, a good trade.
Unfortunately We have now come full circle with China back in another US trade blockade. China's leadership has not been the greatest and corruption is still a huge problem. The Evergrande crisis and the provincial bank run are evidence that Xi has to do more to clean up the leadership team. Chinese culture makes us good businessmen but also corrupt officials. Lee Kwan Yew recognised this fact and made sure that Singaporeans officials were paid as high as most corporate executives and you get fined for every infraction, even spiting chewing gum on the road. Hong Kong was a cesspool until the establishment of the ICAC.
So, China made it mainly because of our culture, from my point of view and a bit of luck.
This is a great video.
I subscribed 👍👍
All of what you mentioned are correct.
The Hybrid system of centralised planning, capitalistic system, motivation and the hard working ethics of the Chinese.
The success of post war Europe was primarily due to The Marshall plan and investments from America (and eventual domination).
❤ 🇨🇳 I wonder now how, if my father from Fujian, and elders who are from Fujian who came here to the Philippines are still alive... finding out how China looked now. I guess they would be teary eyed, full of happiness for Zhong Guo's 🇨🇳 glorious rise to economic power. They would have wanted to spend their last days back to the motherland.
I agree. Post-Mao CCP is probably the most competent governing entity humanity has ever produced. China is where it is today because of 40 years and counting of phenomenal leadership. Good video.
*Actually, only the CPC & CCP have money through "state capitalism" by Nationalizing the the unicorn companies such as HuaWei (Hong Kong Stock market and Hong Kongers and Taiwanese are richer than chinese citizens). China was only able to achieve what it has from foreign investment and USA referral into WTO. C C P did not invent anything, no R&D costs, they stole and copied the west. This will be quickest rise and fall of any nation in history. Since C C P exported w u h a n f l u, nobody trusts C C P. High interest rates means the west is buying less products made in china*
Deng said that if China opened 10 yrs. before (red guard era) it might be better than in 1978.
Anyway Deng is a very good leader.
I highly recommend you 'China Update' channel...
LONG LIVE CHINA. GOOD NOT ONLY FOR THE CHINESE PEOPLE, BUT ALSO FOR HUMANITY. BECAUSE THRU ITS BRI, CHINA IS USING ITS EARNED MONEY N HIGH TECHNOLOGY TO LIFT OTHER COUNTRIES OUT OF POVERTY.
Oh yea but so was Germany in 1937 hint hint
Love your videos, the world need a positive and fair view about China, wish all the success,
Love the traditional Chinese music at the end.Thanks.
Keep it up. Make all Chinese proud.
EVEN A HALF CHINESE LIKE HAVE FELT SO PROUD OF MY CHINESE HERITAGE. BUT I M LOYAL POLITICALLY TO MY COUNTRY OF PHILIPPINES.
Thoughtful analysis in summary of the Economic Prowess of China.
Excellent research.
What a wonderful analysis, Siming! Thank you so much for being there...! Tom in Seattle.
Great Sharing from a different perspective. Also great comparison to show that it's not just simply one factor like large labour pool or having a lot of ports. Keep it up!
thank you!
@@SimingLan U R CORRECT. AS U MENTIONED, INDIA HAS HUGH LABOR POOL. IT EVEN HAS THE ADVANTAGE THAT IT HAS BIGGER ARABLE LAND. BUT EVEN UP TO THIS DAY, EACH CHINESE HAS FIVE TIMES THE PURCHASING POWER OF EACH INDIAN.
Good video! Well put together. Keep it up.
Hello Siming Lan, a very interesting presentation, stressing some less mentioned factors in Chinese economic evolution. All economies world wide and societies are being challenged by dwindling ressources, climate change and environmental degradations. It would be interesting to make a summary of the current policies and actions in meeting these challenges. I am suscribing to your channel. Cheers Phil
hi Phil, thanks for the comment, and i appreciate the support :)
Dear Siming, Thank you for your videos. I
Thanks!
My parents left Guangdong for Hong Kong at a young age. Later they left for America. All my life I felt a disconnect with China because of my family's horrible experiences under the communist regime. And having grown up in America I have a strong western identity. But in recent years I have learned so much about how China has transformed so completely. I am so proud of my people there, and I am looking forward to spending a lot of time traveling there someday.
"Democracy, Liberty, Equality, Rule of Law, Human Rights"
The so-called "Universal values" in the West,
There are five major products:
1. "Evil and Incompetent Politician";
2. "Stupid and Ignorant Voter";
3. "Filthy and Shameless Media";
4. "Greedy and Ruthless Enterprise";
5. "Hateful and Disorderly Society".
The so-called "Universal values" in the West,
Not "Christian values" at all!
And It's not "Universal" even!
There are another type group of people are totally opposite compare with you. They came to the western countries after 90s and they had a peaceful life back in hometown of China. But that group of people hate China with no reason, they just hate everything that related to China, related to the communist party even the party didn't do anything to them.
Full of craps.
If u can, do visit China. Do understand/learn Chinese language n civilisation n cultures. Thereon, u will appreciate them more, instead of one sided narratives by collective west MSMs or materials... To really appreciate real historical events n how China gets to present, understand historical facts etc....know the contexts n conditions then, are important...
😢@@gohsiewhau4819, Indeed, a lot of of Chinese crises and suffering were created by the invasion of the outsider forges. Looting, killing, occupying and stealing resources out China and it puts China over 200 years behind financially.
Thank you for producing this vídeo. 👏👏👏
Thanks!
Thank you, Paul! :)
Congratulations! Very clearly explained!!!
看了几个小姐姐一些讲国内政治、文化等视频，讲的好棒哈，视频能感受是很用心做，想必投入精力不少，觉得你做这些很有意义，让更多国外更全面了解我们国家，真心为小姐姐点赞！！！在世界主流媒体中，欧美媒体仍是主流，这对国外来说，难以通过一些渠道更全面、更客观的去了解中国--这个强大但还需努力发展完善的国家；而国内因为墙原因，部分国内同胞无法更多地去接触国外相关信息；因此对两边人民来说，在中西认知、文化、政治交融和冲突之间，都难以找到一个客观的平衡点去认识，去接受。
“客观平衡点” 你认真的吗
Great explanation . Thanks for the information.
Excellent documentary! I must have watched it four times! You're not kidding about condensed. Also, beautiful gift of you playing music for us to share the Chinese culture instrument. ❤
make a video on the housing market plz, it really would help what a voice on the ground thinks about the chinese housing market and the crisis that seems to be looming.
hi there, appreciate the comment. i'll see what i can do - thanks for dropping by!
Having a good attitude a good grip on reality with production incentive is a big win win . Thank you Siming Lan for your straight up report.
You're right. Besides brilliant leadership compared to US , UK, or EU countries, Chinese seem to have the highest general IQ in the world.
MAYBE THAT IS EVIDENCED BY THE FACT THERE WERE ANCIENT CHINESE WHO HAD HIGH IQ. AS SHOWN BY THE FACT THAT THERE WERE MANY ANCIENT CHINESE INVENTIONS. SO THEIR DESCENDANTS INHERITED THEIR INTELLIGENT GENES.
Chinese are natural born capitalist
ALWAYS LOVE YOUR VIDEO, SIMMING LAN.
Great video!
I think Ryan Chapman's video about the rise of China was an inspiration for this video, am I right? 😁
yes he's great!
Once again-- a simple documentary that enlightens people who are ignorant about China, or want to know about China- Love from Bangladesh
Chinese are Hard-working in nature.. great culture
I believe Chinese are hard working by nature but so is all of humanity and I don't think Chinese can be different. I have many Chinese, Indian, Black friends and they are all the same as me. Some are lazy and some are hard working. I am retired but I have to work or I don't feel good. It is built into the brain that you must work . Lazy people should work also but they are depressed and it is a depression that comes from laying around and doing nothing.
Personally, I think the primary reason for China success is the Chinese culture.
This culture of hard work, ambition, success and money simply don't exist in other culture.
For example : I personally experience a local people (non Chinese) who said after 5 pm, he stop selling gpods and go home although people keep buying after 5 pm. He will start selling tomorrow.
In the Chinese culture, this is crazy.
As long as people keep buying, the Chinese people will keep selling and make more money.
The most obvious evidence is the success of many Chinese people around the world.
They travell to other part of the world because of Great Famine. As a stranger which can't speak local language, they adapt, survive and then become more success than the locals.
This Chinese success entrepreneur can be found in many part of the world, such as Malaysia, Singapore, Indonesia, Thailand, America, New Zealand, Australia, UK, etc.
Their succeess don't depend on the local government (in many cases, the local government tend to suppress and bully the Chinese).
This is why I said, the rise on China is mainly because of its culture, then supported by its government.
Is that make sense?
Chinese are natural born capitalist
China model of success depends on 1) political stability 2) oversea Chinese contributions 3) economic reforms 4) science and technology advanced 5) industrial reform 6) military advance 7) FDI
*Actually, only the CPC & CCP have money through "state capitalism" by Nationalizing the the unicorn companies such as HuaWei (Hong Kong Stock market and Hong Kongers and Taiwanese are richer than chinese citizens). China was only able to achieve what it has from foreign investment and USA referral into WTO. C C P did not invent anything, no R&D costs, they stole and copied the west. This will be quickest rise and fall of any nation in history. Since C C P exported w u h a n f l u, nobody trusts C C P. High interest rates means the west is buying less products made in china*
Thanks for a great video. Blessings from South Africa
Your coverage of contributing factors was excellent, though I feel as if a fully fair presentation would include companion video covering some of the other factors which you chose to provide a greatly lessened air time. The emphasis on more positive elements of China's successes in recent decades presents a bit of an overly optimistic story. That's not to say that what you chose to cover is less important than the other factors - just that they are of somewhat similar importance to other major elements playing into China's economic rise which are popular for other commentators to emphasize.
If I were to propose a further 3 factors which would be similarly worth of coverage, I would cite the following:
1. It's too much of a hand-wave to de-emphasize the role of market reforms in your presentation. In particular, FDI has been a game-changer for China in recent decades. The extremely substantial investment of commercial entities located in other nations into China's burgeoning manufacturing sector, particularly during the 90s and 2000s. This greatly accelerated the growth of China's large and fairly modern industrial base.
2. At-the-time favorable demographic trends, such that the number of children which each adult needed to raise was low in number for a large number of years. This enabled workers to conserve resources and prioritize productivity over child-rearing.
3. The phenomenal expansion of infrastructure which was accelerated during the immediate aftermath of the Great Recession. This enabled people and goods to move far more quickly and efficiently from one part of the country to another, and helped usher in a greatly-improved quality of life.
Of the factors which I cited, 2 of them are looking increasingly ephemeral, but even with reduced foreign investment and unfavorable demographics, China now benefits from modern, extensive infrastructure, and I don't see demographic decline necessarily changing the aspects of Chinese culture which encourage hard work and education within practical fields. The next 3 decades don't look nearly as booming as the last 3, but if handled well, a transition into a stable (if perhaps a bit stagnant) modern economy is quite feasible.
Still a very good presentation on the whole, and excellent English - though you may want to reduce your usage of the word "and" when giving a formal presentation. I hope you continue to provide more of your inside perspectives on modern Chinese culture, economics, and society in further videos! Subscribed.
great comment!! enjoyed reading it
@@SimingLan Good work.
Good explanation and analysis. Agree completely! Wow, you play the guzheng beautifully!
Muy bueno este vídeo.
En Latinoamerica desafortunadamente tenemos mal liderazgo y estamos divididos y débiles.
Saludos desde Sidney
gracias
Dear Miss Lan. Your voice and contribution is very valuable in these days. There are many misconceptions in the „West“ about China, that needs to be addressed. As a Swiss I always try to see both perspectives, and I see that you also enter both view points. A view point is not an opinion.
Very happy to have discovered your channel, keep up your good work and stay happy and healthy.
There is only one thing I don't quite agree, the evaluation of Mao's contribution to China's modernisation, Mao's social restructure and social reform is the foundation for Deng's reform to be even possible, also China's first generation Industry which was built up during Mao's period with the help from the Soviet. Understanding how China was able to developed from such poverty background, you would wonder how come the leadership still had the courage to lead China without thinking maybe history was not planning to keep a space for us Chinese people, our future generation would be the vagabond of the would. For that, on behalf of our sons and grandsons and beyond, I'm truly grateful.
Not unlike how the dragonian Qin Dynasty set the foundation for the golden age Han Dynasty.
Thank you so much Siming Lan for sharing this very thoughtful and insightful perspective about China. Keep up the great work. I'm looking forward to more awesome videos from you.
One aspect missing from your otherwise thorough analysis was the MASSIVE transfer of technology from the West to China. Thanks to this technology transfer, China didn't have to spend decades reinventing the wheel, i.e. inventing their own industrial processes and high technology. By requiring Western companies that did business in China to "share" their intellectual property, local Chinese companies were able to easily appropriate and build on existing Western technologies, saving themselves decades and billions of dollars in research and development. China has now cornered the market on e-vehicles, space travel, mobile communications, artificial intelligence, etc., but all of this was made possible by a transfer of Western technology IN ADDITION TO cultural Chinese values like hard work, education, frugality and industrial habits.
one thing you must to know that "transfer of Western technology"is not free for china
@@magicyang8594 It might not have been "free", but they did not have to spend decades as well as billions of their own money in research and development. They were able to acquire Western technology for a fraction of its cost and then quickly mass produce it.
@@CurtisCT I am very helpless, my reply trigger keyword was cut off by the system. I feel sad for your Western perspective on China. You have been truly fooled.
@@magicyang8594 I can't help your sadness, but facts are facts, and they care nothing for our feelings.
Not very surprising. Japan did something similar during the early years following the Meiji Restoration and again after WW2. Obtain good examples from the West, copy them to death, then produce an original design using what was learned from the copycat period. China is doing the same thing, but from a bit closer to the curve.
youtube is crazy, i've been watching videos of china, either from foreigner of from the china media but i never saw you like since last week, and i've been doing this for like almost 5 years, seriously, you need to share your videos in a better platform, i hope chinese platforms can provide you a better appreciation!!!
Let's not forget the insatiable desire of western businesses to find the cheapest sources of labour possible, much of which China was able to provide.
I am of Chinese descent but never knew what that meant. Since I do not speak, read or write Chinese, did not feel connected to my roots for most of my life. But now I realise that I possess very Chinese DNA since I studied hard, worked hard, saved as much as I could, built a better future, was pragmatic, family oriented and proud to be successful. Must be the culture you mentioned.
It is always impressive to hear a Chinese perspective of corporate and economic authoritarianism as opposed to unguided Capitalism.
It has tremendously contributed to the Chinese and world development and how it continues and develops is a subject no one can predict.
hi! thank you for the comment, appreciate it
@@SimingLanI hope we can all learn to appreciate others, and strive for peace, love and fairness?
These argument is not wrong in some extent, but may be based on an distorted understanding of the history. The concrete industrial, miltiary, ideological, diplomatic and social foundation built up by Mao, others leader and the Chinese people before Economic Reform cannot be ignored. Without the first 30 years of hardwork, there will not be the later 30 years of success.
Moreover, every leader worked his best to make the country adopt to the geo-political and internal environment at that time and pave the way for future development. Mao's and other leader's ideology are always the backbone of the CCP, and the economic policies are actually consistent at their underlying principle all the time. These can't be denied.
I partially agree with this analysis, but i think it leaves out several important elements.
1. On leadership, i mostly agree that the leaders were wise to turn things around after the issues brought about in the great leap forward. However, external factors that had virtually nothing to do with China's internal reforms, e.g. Nixon bringing China into the UN and raising its political clout to counter the USSR in the cold war, also helped to transform China into an acceptable country to associate with and trade with in the international order, i.e turning China into a politically powerful country. China wouldn't be as powerful were it not for such external factors.
2. On economic policy, three points.
First, I think external factors actually account for most of China's progress. In the book you cite, how china escaped the poverty trap, the author actually states that it's quite possible that the leaders of China in the 1970s and 80s adopted Mao-era guerilla warfare flexibility, essentially enabling them to make painful changes necessary to achieve bigger goals further down the line. I am inclined to agree.
In making changes to the broader economy that they disliked but considered necessary, i.e. becoming a bit more capitalist and opening up for foreign investment, they were able to convince foreign governments that China as a country was completely committed to having not just a liberalized, market based economy, but possibly even a liberal, democratic government in the future. China let these delusions play out while absorbing foreign investment and using this new capital to fuel its economic rise.
Chinese leaders' flexibility was a big reason foreign capital was drawn to China, but without that capital, China's economic reforms alone would likely have changed little about the country in terms of its power.
Second, i would strongly argue that the Chinese economy is still highly state-controlled, with only a veneer of privatization or decentralization.
China's legal system formally states that all private Chinese companies must comply with any and all government mandates, including mandates to help weaponize their products against China's adversaries and steal IP from foreign companies doing business with Chinese companies. This has been the law on paper since the late 2010s, but it has been the reality in practice for decades.
There is therefore no real private enterprise in China unless the Chinese government allows it. The moment the gov changes its mind, it will crack down hard on whatever industry it has on its kill list, e.g. the tutoring and tech crackdowns over the past few years.
Third, the government's control of the economy has severely hampered China's organic growth, indirectly decreasing its power.
As you point out, it's supposedly local governments that have the power to engage in experiments in economic policy and act as decentralized economic hubs. However, due to the stringent economic growth numbers that the national government demands local govs hit, the local govs are not incentivized to take real risks that could cause big organic growth or result in big declines - all local govs are incentivized to make growth numbers good, whether they are real or not. All local govs therefore spend much of their time and money appeasing the central government by diverting funds to useless projects that boost growth numbers and are risk free on paper. Unfortunately, they are also inorganic and are not productive to society at large.
Think of China's "ghost cities" with no occupants built on the outskirts of major hubs, and China's trains to nowhere. These are examples of inorganic growth that are a ticking time bomb - once the central government is unwilling or unable to prop up these artificial numbers and growth rates, and the lack of real productivity from these projects becomes inescapable, China's economy will be revised downward massively in the international finance world.
In essence, China's economy is not just centralized, but is on track to expose China as much less powerful economically than it appears.
3. On Chinese culture, two points.
First, the drive to "be ambitious and hardworking", i.e. grind oneself into the ground, studying and working day in and day out under the 996 schedule, is only a driver of economic success so long as other important economic elements are in place. Things like foreign investment, job opportunities, and standards of living have to continue to increase for the workaholic culture to fuel more growth and make China powerful.
However, these economic elements are actually decreaseing. Foreign investment in China is drying up, youth unemployment in China is sky high and rising, and the housing crisis in China is destroying Chinese citizens' net worth and consuming much of their wealth and incomes (since in China the only way to ensure social/romantic desireablity and preserve the value of capital has historically been to buy property, with all the mortgage payments that entails - not great when property prices are falling).
Add to these issues the fact that China has essentially a caste system that prevents people born in rural areas from rising up the social or economic ladder, and restricts educational opportunities for them and their kids, and the prospect of seeing increasing standards of living in the foreseeable future seems out of reach for many Chinese people. Lifting people out of poverty is great, but relative social advancement is what citizens want next, and it doesn't appear likely to happen. Without such advancement, consumption may stagnate, and China's economic power may stagnate too.
Second, the workaholic culture of China is very demoralizing. People did not evolve to work all the time; relaxation is necessary for human creativity and flourishing, and the Chinese/Japanese/Korean workaholic culture is much worse for citizens and families at than a more relaxed approach. This added chronic stress on the populace will not strengthen the country, since chronic stress can spiral into a range of psychological and physical problems later on down the line. Healthy population, healthy nation; healthy nation, powerful nation.
In short, I think more credit needs to be given to external forces that made China powerful. I also think we need to acknowledge that those same external forces, and a few internal forces, appear to be reversing the gains in Chinese power.
I agree. Didnt CCP take down Jack Ma founder of Ali Baba after he complained about regulations. I don't see how they are going to get to 4th industrial revolution without any multinationals. They just became a dumping ground for western manufacturing which will stop as these companies go to even cheaper labor markets.
Thanks
I love your videos. I am an academic economist delighted to see how poverty is dissappearing all over the world. To your reasons for chinese growth I would add international trade and constant population. When I was born, Spain was a poor country that during 1960-75 grew faster than anyone else in the world except Japan. And the reasons were close to the ones explaining chinese growth. In our case population control was achieved by sending 2 million spaniards to work abroad, specially Europe. The good side of this was that in 1975 the Spanish economy was more integrated in the EU than the italian so to continue with a dictatorship was unfeasible. Growth continued with democracy at a slower pace but stopped in 2008.
Regarding why China can develop, the UP owner has overlooked one of the most important reasons.
The reason is: Chinese society was completely transformed by Mao Zedong, the landlord class was eliminated, and the land revolution was carried out, which is equivalent to reinstalling a system,
This is the basic condition for success. Without this condition, if you continue to allow the landlord class to occupy a large amount of social resources and control the lifeline of the country, you will not be able to carry out any reforms.
India's independence did not completely transform the entire society. The caste system, the landlord class, and the land revolution did not exist, so India cannot be reformed.
If India wants to develop, it needs a Mao Zedong to reinstall the system of the whole society. Now the system in India is not working, and it will often crash.
Well if you put it furthermore, Mao was influenced by Soviet. Should we say that the most important reason is the communism?
@@dawsame5423 Mao's contribution to the rise of China is undeniable but at the same time he had made his mistakes. History is for learning and those who comprehend the multiple underlying factors will gain the most. Emulating single factor(s) will most likely resulting in failures.
In term of Spain integration helped greatly but in terms of Russia did not. I am afraid that China now moves to more authoriterian and hostile to the West regime:( Anyway thanks for very interesting note.
Thank you Siming dear 🙏🏽
cheers
Hmm... I understand there are time constraints, and the video was not meant to be a comprehensive lecture. But still, I think it should at least be mentioned that the Mao era was absolutely necessary to build the foundation for Deng's reforms. China's rise would not have been possible without the drastic rise in life expectancy, health and literacy under Mao, and it would not have been possible without the industrial base built in the Mao era. On top of that, China would have found it much harder to lift hundreds of millions of people out of poverty without the land reforms. On the last point a direct comparison can be made with India.
definitely:) thanks for bring it up and happy new year's!
@@SimingLan Happy New Year to you as well :)
There are two ways to be fooled. One is to believe what is not true. The other is to refuse to accept what is true.
You are right about human capital and coastal cities. Disappointed that you failed to acknowledge that it was largely the result of the worldwide trading system put into place following WW2 and innovations such as those in shipping developed afterward. Pre-WW2, it would have been difficult to import ore from Brazil to say make steel, import bauxite from Australia for aluminum and far fewer customers had the free trading system not been implemented. I'm sorry, but US, Europe and even Japan and Taiwan deserve credit in addition to the hard work of Chinese citizens who were finally free to pursue capitalist talents following Deng taking power. It's obviously a complicated set of events but you give far too much credit to the government which basically finally got out of the way of the Chinese people. Would add that hard work and commitment to education is close to a universal value. India has been held back because their government still interferes too much and cultural traditions that impede progress are still in place.
I would argue that the trading system established after ww2 is not a major factor in China's success. The reason is that many other countries were using the system, including countries that were much stronger & wealthier than China when CCP came in power, but only China managed to grow in such speed and consistency.
@@kennyng8335 As it is an "alternative history", one cannot say with certainty that another system might have emerged that allowed it but I doubt it. Many countries have done what PRC has done. South Korea, Japan, Taiwan, and to an extent Brazil (many years ago). Japan obviously had some advantages as they were industrialized prior to WW2 and Germany and other EU countries grew at exceptional rates after WW2 too but they were more like Japan. SK, Taiwan and Brazil were farming economies that did (and still do) very well but their growth rates came down and it is largely inevitable that this will happen to PRC too. Now the population of China makes it exceptional but India is only country in that category so there are no comparisons.
@@jeffboyd9301 Guess the phrase "alternative history" already reveal your true intention here. China's growth is totally beyond those countries that you mentioned, those are one hit wonder & doesn't last long, the key point here is "speed & consistency" which you choose to ignore.
@@kennyng8335 PRC fell far behind during Civil War and Mao years so if you look at data since 1980, yes I'd agree PRC blew other countries out of the water but the other Tigers had many years of very high investment-led growth that were astounding. In 2020 GDP per capita data from ChatGPT was. PRC - $11K, SK - $31K, Taiwan - $26K, Japan $41K.
Investment-led growth eventually hits a wall as returns on investment historically have declined once a country builds out infrastructure and has to rely strictly on productivity growth. I have no idea when China will hit the wall. Perhaps it will grow at 9-10% for many years into the future and have GDP comparable with or exceeding other Tigers. Only time will tell. In the meantime, I'll bet certain areas of China are already on par, or close to Asian Tigers as GDP growth has varied from region to region far more than other countries.
Love how you play the Guzheng (古箏)
Deng is one of my biggest heroes. Great video.
Hi Siming, I used to watch your videos when at college in the UK, exploring Britain's culture, literature, countryside, bicycling around. They were quite delightful. Reminded me of my long ago youthful curiosity. I think your reporting from China is a breath of fresh air and I hope you can avoid becoming a propoganda arm of the CCP. If you can hew to an independent path all will benefit. Avoiding geopolitics might be wise. It is difficult in the West, particularly in Anerica, to get a clear view of China. Some, who make millions from doing business, give one view. Others in government, especially the foreign policy establishment, provide an increasingly negative view. Balance is lost. Given my long years studying China, I hope for balanced understanding. Very difficult to achieve. But I know you are doing your best.
During Chairman Mao china manufactured it's own cars,home appliance. Chairman Mao always told that china must excel on science and technology,china must build a strong military etc... Economic development was good but let's not forget science and technology as before the western countries existed,china was a country who excel on science and technology and many ancient Chinese inventors invented different tools which was being used or copied by some western countries
YES, U R CORRECT. IN THAT THE ANCIENT CHINESE INVENTED MANY THINGS THAT ADVANCED THE TECHNICAL KNOW HOW OF HUMANITY. LIKE THE COMPASS, THE GUN POWDER, PAPER MAKING. IN FACT, CHINA WAS THE FIRST COUNTRY TO PRINT PAPER MONEY. THE METHOD OF PRINTING. INCLUDING MOVABLE TYPE,. SILK MANING, ETC. BUT MAO WAS NOT A GOOD SCIENTIST. DURING THE SO CALLED GREAT LEAP FORWARD, HE ENCOURAGED EVERY HOUSEHOLD TO SMELT IRON. HAHA.... NOW CHINA IS THE GREATEST STEEL MAKER ON EARTH. MAO MOBILIZED THE PEOPLE TO ERADICATE THE SPARROW, WHICH HE SAID THEY EAT GRAINS. BUT AFTER MOST SPARROWS WERE ELIMINATED, INSECTS MULTIPLY TO CAUSE MORE HARM. IT IS AFTER MAO WAS GONE THAT CHINA BECAME SCIENTIFICALLY ADVANCED.
Thanks again Siming,
One of the repeated mistakes I hear is as Deng said "he did not want to hear exaggerated reports of progress" as that was a problem of the Great Leap Forward - but that's what is happening again as local governments are often 'afraid' to give true reports of anything they are failing at achieving, and 'afraid' not to succeed due to potential punishment' from Central Govt. - COVID 'success' being an example
Until 2018-19 many people of world (incl me) were mesmerized by China's rise, it was inspiring and many of us cheered it as an example for our native countries. But then these happened: 1) way China handled Corona virus, 2) Real estate and debt crisis, 3) way CPC/CCP bullied nations like Lithuania, Australia....., 4) Tanks being brought against their own people who just want their money from bank, 5) Jack Ma one of our most inspiring leaders totally silenced, 6) Rich Chinese fleeing their wealth out of China, 7) Checking cellphones (a personal device) in subway stations to see what app being used (confirmed by a fellow colleague), 8) bringing barbed cudgels in a zone of zero weapons....on and on and on.... I have now heard 3 trustable Chinese colleagues/acquaintances say things in private that they will never dare to say in public (nor would I dare to say it for them). China is one of the greatest nations, a true great civilization, but its ruling political elite suddenly have started doing things that do not appear cool any more.
If China wants to start continuous development
It must get rid of the corrupt officials In the government
Xi is doing that
Thank you for sharing your point of view with a very positive attitude. I also very enjoyed your 古箏演奏， too.
please note：the very foundation has been laid by Chairman Mao！
China 🇨🇳 was a very ancient civilisations and I think they still do there ancient traditions that built this country into 100 steps ahead of the world
On a less theoretical level, pragmatically, I experienced some aspects of China's transformation that is more telling. My first trip to China, business, took me to Shanghai in the early eighties and then Westward into a region that previously was off-limits to foreigners for military reasons. My spouse was with me and as we traveled from the airport to a 'Western' hotel we observed people in standing in long lines in their underwear. Driving along to the head of the line where a bucket of water was poured over the person's head and they soaped up. Stepping forward, more water was poured over them to rinse off. My spouse leaned towards me saying, "remember when dealing with these people that all they have and value is each other". That was a keen observation of the reality then. Later, 20 years, I can confidently say that Chinese people do not care about each other and extreme mutual exploitation is the norm. In other words, as Siming Lan says, very competitive.
Questioning one government official about how he became a leader he had a fascinating story. One day some people came to his "village" and selected high school students who would be sent to London for university studies and then would return to be assigned official roles in local government. His parent had little formal education yet he became a significant person. This group of students returned from university with a noble mission.
I experienced one business associate in their transformation from small local company to a global force. His business was located near Shanghai and on one visit I was invited to go to their new factory location near Shenzhen. Arriving there I saw an immense unoccupied area with just a few smallish buildings surrounded by a tall fence. Ten years later that unoccupied area was a bustling city. The company make no profit on their product, and I was told that they lose money on their product. All the while losing money they pushed onward with business expansion. Yet, the company was very profitable all the way! When being given the land for their factory it included the entire barren area. Their job was to create a city employing hundreds of thousands of people. These people needed housing, entertainment, education, restaurants and all the other shops normal to a city. While the company sold products at a loss, they made their money on rents and other local economic activity.
Recently, in another city further, West of Beijing, I was advised by my host to move my car to a better lit area and also that it was not safe to walk about at night. Very surprised by this advice he went on to explain that there has been so much disruption and exploitation in China that the old community ties no longer influenced behavior. That breaking into automobiles and stealing from others is common. People are driven to get money. He also explained that the government is now working to restore humanity in China. Of course, other government entities are pushing more aggressive development.
I have a hundred such stories because I am keenly interested in the stories of other people.
It used to be, in my time (now retired), that doing business in China first entailed becoming friends. Young people are now very willing to lie to make business. Acting friendly and courteously is just that, an act. Once people worked hard for their communities because of a heartfelt desire to do something well for everyone. Now they work hard to keep what they have and to gain more. The first is a virtue and the second is a corruption at the core of their being.
China traded its beautiful sense of friendship, what is mine is yours, for mercenary disregard. Is there a way back? Friendship and trust is now very much localized to one's own small range of associates.
Promoting social value has to be as important as making money. It is a challenge that the government and educational organizations have to constantly remind the general population.
Wonderfully done. Thank you so much.
Great video. I am old enough to recall that China was poorer than the African continent in the late 1970's and i saw the first Chinese students and academics coming to western Europe.
China got investments - Africa got aid. We now know how these two different approaches worked out in the long run.
As to the 'working hard' dogma - the poorest people in the world generally work the hardest.
I think 'working smarter' is a much better path to take
If poor people work harder, there wouldn't be poor people in the world. Get real.
KEEP ON DOING YOUR PROGRAM; IT IS INFORMATIVE AND INSPIRING.
foreign investment and the hard work of the Chinese people
thanks for commenting
An unbiased analysis of the endeavors of the Chinese populace collectively, to bring China out of poverty and supercharge their economy. You've overlooked one major point however. The enactment by President Bill Clinton of 'Most favored status' in trade with the USA. This allowed for an open market for goods and services that increased a positive trade balance fivefold. Needless to say, your body of work is intellectually concrete and very refreshing. I enjoy them. We enjoy the same status here in Canada.
Another good review.
Just few points.
1) Shock Therapy has only been used in East European and former Soviet countries with success in Poland (mainly due to West Financial Support) and huge disaster in Russia. The Economic policies you described are most commonly called Washington Consensus.
2) China has several big historical problems. One is at the end of a dynasty, the Land were concentrated in few big landlord. In a bad year, this directly led to peasant rebellion. So CCP made the land public-own to save this issue. However this led to no-incentive to work-hard. This is partially salved by Deng's land reform, Peasant has the using-right of the land, but can't buy or sell the Land. This led to other issues, such as peasant abused the land since they can use it, but not own it for future (villages will redistribute the land after population change).
THE STATE OWNS THE LAND. LEASED TO INDIVIDUAL FARMER-FAMILY. THEY STILL HAVE TO SELL ENOUGH OF THEIR PRODUCE TO THE STATE AT CENTRALLY PLANNED PRICE. BUT AFTER THE QUOTA IS FULFILLED, THE FARMER CAN SELL THE EXCESS AT FREE MARKET PRICE. THIS GAVE THE FARMERS INCENTIVE TO WORK HARD TO PRODUCE MORE. UNLIKE THE PREVIOUS COMMUNE SYSTEM OF FARMING. IT GAVE NO INCENTIVE FOR INDIVIDUALS TO WORK HARD. SO LAZINESS PREVAILED, N POVERTY REMAINED.
Watch and learn. How many are willing to view the world in this way? "White cat or black cat what matters is if it catches nice". Think about it. Enjoyed the vlog.
The answer is Deng Xiaoping who ditch socialism and adopted a semi-capitalist model.
thanks for the comment!
It's still have socialism elements in it. Not ditching but enhanced it to work better with capitalism.
Thanks for the explanation of the rise of China today at a level of granular detail. I'm an ex patriot Chinese in Australia where my parents "escaped to" after WW2. The media here in Oz is heavily biassed affairs China as everywhere in the West. Only from March 2023 did I suddenly wake up to the fact I was held in a Western media bubble.
+1000 social credit.
You play the guzheng beautifully.
China had tremendous growth because it started off from such a dismal state , so had an extreme amount of upside potential. They did this because the west gave them the technology and know how. They also stole and continue to steal IP and technology without paying for it. That amounts to a huge savings for China. All of this technology transfer has peaked and now the growth in China will drop to 1to 3% like all other developed economies. China will do worse because of the communist government. These governments can't innovate and try new things. They can only copy the ideas and strategies of democratic countries. I don't think China wants to copy everyone else forever. India is different and it has enormous room for upside growth and will probably eventually have a bigger economy than Chinas, This is simply because it has a democratic system. The democratic system allows experimentation and failures and searching for the best policy. China can only copy what other countries do because the government cannot innovate. This is the heart of a communist system. They adopted capitalism but they have no idea what to do next and that is the problem with all communist systems. The Chinese government does not have the luxury to fail and survive. A democratic government can have failures and continue on with a new government.
@@mohibquadri4053 Hey you are fancy with the scrabble Demo crazy. Yes the idea is too keep all leaders out of power for more than 4 years so you don't end up with wack jobs like Hitler, Putin and Xi. Now a lot of the rest of the things you say are correct but your problem is the same as the problem with central planning. Communism is a government that is centrally planned and most also have centrally planned economies. No one knows what the future will bring. That is why stock markets work and why the free markets work. No one can figure out the long term. You can't focus on long term problems the way the communists do because the long term problems change and they change quickly. A problem one day can vanish the next day with a new invention. This is why communism fails. The Soviets planned for things that they didn't have to plan for and wasted time and money. Democracy is the free market for the government. China is stuck. The switch to capital markets helped immensely but it is at a dead end. China going crazy and building apartments for people and expanding infrastructure and it could all backfire. Think about this building a huge railway to move people and then poof, everyone stays home and works from home. The railways are a total waste in this scenario. It is very easy to see this happening. You use robots controlled by people in all the factories so you never leave your home, just put on a gamer visor and hand controls and go to work from home at 8 am sharp everyday. No need for trains. Understand how inflexible the Chinese system is now ? This is why it always failed in the past.
The fixation on leadership and the love for a leader is a very dangerous thing and it always ends in millions of people dead. There are millions of qualified people in China that can run the government and to keep one guy in there is lunacy.
Democracy has all kinds of problems like you say but so does the free market and people go bankrupt and commit suicide and fail etc. It is by design that people can fail, and it is by design that the government can fail and get voted out.
So China should do what they do good and steal things and ideas. Steal the idea of democracy and use it . You do realize that inside of democracy you can have a communist party and government ? Canada has a communist party . They have never been elected but they could be elected , if the people want it. So why not start off with a multi party system with a large communist party in control at the start and then slowly try some different parties if you are afraid of making the leap to democracy. This is what I see a a big problem in places like china, the people are fearful.
thank you for the comment jeff!
Democracy has its upsides, but it's not going to magically save India
@@pierrecurie What does India have to be saved from ? Eventually countries over the world will have stable populations and growth will be zero or stable at zero. This is what the goal is because once an economy is mature the growth should be zero.
I checked India and China and they both have about the same production in food to feed their population. Both countries are depleting the ground water and are unsustainable. China is dry as a bone now but India will have problems after the glaciers all melt and then the rivers will dry up. I predict large migrations to Russia , which is half empty. Russia and Canada are both in good positions because the weather is warming up and -40 degrees where I am is not pleasant and slows everything down. If it warms up enough we could produce two crops a year instead of one and thus double the output.
China has a problem with infrastructure and India also has a building problem. The nice new shiny buildings and transport, rails and road are disintegrating due to severe corruption and very very poor building materials and paying off the building inspectors. India is also bad but on nothing like the scale in China. So what I don't understand if the central government is working so well and can do things in times spans 1/3 of what it takes in Canada , how can they not make sure the construction is good and safe. I went to Guangzhou by accident. My layover was 15 hours and the Chinese airline offered me a free room at a hotel, so I saw the city. I would not eat anything because in China people scoop debris from the sewers in the street and clean it and boil it to extract oil. This oil comes mostly from cooking but is loaded with very bad chemicals that cause cancer and other problems. This oil is then sold and mixed in with other oils and sold to restaurants and stores. It is called gutter oil. I would like to go back to China to visit but I would have to bring all my own food , so I won't go until I know for sure this oil is not sold.
So how does the central government allow such horrible things to happen ? There is no control at all and it is a free for all. If there were free speech and a Democratic government with all its people in society feed into it , this kinds of things would never happen.
Check RUclips, it seems most buildings in China are what they call Tofu Deng. You see them collapsing everyday. In 10 years there will only be ruble left. Maybe China is the case of selling the soul to the devil and when the clock hits midnight everything will disappear.
Which country put a man in space first? Turns out humans working together do better than individuals trying to make themselves rich.
I, as an overseas Chinese, is enthralled by your story. Love it!
Authoritarianism is not inherintly evil. Republicanism and democracy are not inherintly good. Such conclusions are only deeply appreciated in China.
lol
Sure, sometimes it is best to make a clear decision instead of constant arguments. Depends on situation, like in ancient Rome, when they elected dictators for a set amount of time in case of war... Until one of them proclaimed himself a caesar. China had opportunity to develop further. But authoritarianism has an inherent tendency to spiral out of control, while democracy has tendency to self correct - there needs to be a major disturbance for it to fail, like sudden influx of migrants, or too much rigidity in system (USA).
@@martinforro5696 I totally agree with your conceptualization. It is difficult to form of a goal or target oriented authoritarianism which is still evaluated and scrutinized because powerful people usually want to stay in power. But China at least in theory has strayed away from that with 2 term limits of Presidents
@@martinforro5696Look at hitler Germany
Look at Donald Trump
Look at biden
All are dangerous people
Lol nice try. But no!
How so? Just wondering which talking points she presented are wrong.