China's Transformation into a Global SuperpowerChina is the world's most populous nation located in East Asia. Chia stands out as the second largest nation in the world by surface area. The analysis of Yan, Wang, and Yao (98) classifies China among rapidly developing nations, enjoying a stable economy driven by the rapid surge of civilization, industrialization, and technological advances. The current People's Republic of China has one of the highest gross development products. China also boasts the fastest growing middle class. The document questions China's economic development over the years, a factor that has led to its development and transformation into a global superpower. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay The history of China's current economic status can be traced back to the early 1900s (Cheung 12). During these periods, China was among the underdeveloped nations suffering from a difficult economic situation. In these years the GDP was small and most of the population was unemployed. The few industries that existed were state-owned, with central control over financial systems and planning. There have been little technological advancements which have lowered the productivity of the industrial sector. The economy suffered from limited resources in terms of skills and capital. Taking the year 1978 as an example, 25% of China's GNP was reinvested in the manufacturing sector, with an approximate return of $111 billion. Compared to the same year, 16% of US GNP was reinvested to generate an approximate income of $345.6 billion. The fact that the income of $111 billion served a population 4.5 times larger than that of the United States served by an income of $345.6 billion gives a clear picture of what the economic state of China was like (cannon 63 ). used in industries were imported. There has been progressive technological progress, with most manufacturing sectors employing obsolete equipment. A good example is the agricultural sector, which has received a relatively small share of national investments. The agricultural sector was highly dependent on human and animal labor, with little mechanization of imported pumps and tractors. The development was far behind the national standards of the time. There were no international markets for the products due to poor infrastructure. Local markets were not substantial since their main customers were industrial workers who on the other hand suffered from low wages. The biggest challenge to economic growth in China between 1800 and the 1990s was a booming population that outpaced production levels. The consumption rate was relatively higher than the production rate, especially in agriculture. The low surplus undermined investment and productivity per worker remained low (Kennedy 67). According to Naughton (78), the turning point of China's economic status from bad to better can be traced back to 1978. Deng Xiaoping's leadership The process began after the death of Mao Zedong, who changed the leadership structure and reshaped the entire Chinese economy. Under his leadership, Deng Xiaoping pushed for reforms in the productive sector that laid the foundation for the country's current economic development. These reforms were based on four modernizations in the fields of agriculture, science and technology, defense and industry. The reforms resulted in reducing government control over the economy. This attracted the explosionof private companies. Collective farms were broken up and individualized to increase production. China was now open to international markets, with the government promoting entrepreneurship. China's accession to the International Monitory Fund (IMF) and the World Bank in 1980 laid significant foundationscapital to the manufacturing and trade sector (Cheung 27). When Jiang Zemin became president of China in 1990, other important reforms were made. Among them was the privatization of most state-owned enterprises. This has extended the role of the private sector in building the economy through job creation and better wages for its employees to increase productivity per worker. In the same year 1990, trade barriers such as heavy taxation were reduced. State planning in the industrial sector has been eliminated. Taxes were revised in favor of banks, which provided more low-interest capital to the business and manufacturing sectors (Cheung62). An important step in economic development was joining the World Trade Organization in 2001. This further exposed China to international markets, opening up space for investors and new opportunities outside the country. During those years, China faced enormous economic progress, without any taxation on the agricultural sector. The country enjoys booming exports, large-scale manufacturing, and massive investment (Naughton pp.87-99). Since the 1978 reforms, the nation has enjoyed progressive economic growth, rising from ninth place in nominal gross domestic product to second place in the ranking of gross domestic products. world, with an estimate of 9.2 trillion dollars. The secondary sector, which included industry and construction, recorded the highest contribution to China's GDP until 2013, when the tertiary sector, including manufacturing, accounted for the largest share of GDP. This change has been associated with the aspect of modernization, where the manufacturing sector has gained popularity due to the adoption of technology. Electronics and machinery make up the largest share of exports from China, contributing 55% of export income. China enjoys the largest share in international markets (Cannon 120). Due to massive industrialization and increased business opportunities in China, the nation has the largest working population in the world: 770.4 million people. However, over 90% of these were classified as middle class by Lin, Justin, Fang, and Zhou (25). The working class has adopted the middle lane trend. This has been associated with two factors, one of which is the larger population living in rural areas. The other key factor is rapid economic growth. In any growing economy, wealth depends much more on capital than on labor. While China's economy offers jobs to more citizens, rising living standards do not give workers the opportunity to accumulate wealth. As the nation enjoys the fastest growing economy, there is concern that the middle class may grow in the coming years, which will generally reduce purchasing power and incomes from local markets (Farrell, Diana, Ulrich, and Elizabeth 124). In 2013, China made another economic progress, which creates the perception of China as a global superpower (Wu 146). The Asian Infrastructure Investment Bank (AIIB) was started and launched by China in 2014. The bank manages capital of over $100 billion. This is half that of the World Bank and two-thirds that of the Asian Development Bank. The main objective of the AIIB is to support the construction of infrastructure.