Conditions and Prospects for Economic Growth in Communist China

THE Communist conquest of mainland China may be legitimately viewed as the culmination of a century-long interregnum during which the traditional equilibrium of Chinese society was profoundly disturbed by the Western impact, at a time of dynastic decline. The initial impact of the West was in the nature of a shock treatment administered by the Opium War, the subsequent military defeats, the unequal treaties, and the rise of the whole Treaty Ports system. Thus China's first massive contact with the West was associated with humiliation, bewilderment, frustration, and a sense of inequality. In these terms, then, a constant and continuing struggle for equality has been a hallmark of China's development since 1840.The military and diplomatic defeats suffered by the Chinese made them conscious of the West's technological and industrial superiority. In fact, one of the essential ingredients in China's striving toward equality was economic—expressedin a deep-seated aspiration to catch up, to narrow the gap, and to industrialize. In other words, the Western impact generated “tension between the actual state of economic activities in the country and the existing obstacles to industrial development, on the one hand, and the great promise inherent in such a development, on the other.”