China's Economic Rise: History, Trends, Challenges, and Implications for the United States Page: 7 of 51
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China's Economic Rise: History, Trends, Challenges, Implications for the United States
According to Chinese government statistics, China's real GDP grew at an average annual rate of
6.7% from 1953 to 1978, although the accuracy of these data has been questioned by many
analysts, some of whom contend that during this period, Chinese government officials (especially
at the sub-national levels) often exaggerated production levels for a variety of political reasons.
Economist Angus Maddison puts Chinas actual average annual real GDP during this period at
about 4.4%.6 In addition, China's economy suffered significant economic downturns during the
leadership of Chairman Mao Zedong, including during the Great Leap Forward from 1958 to
1962 (which led to a massive famine and reportedly the deaths of up to 45 million people)7 and
the Cultural Revolution from 1966 to 1976 (which caused widespread political chaos and greatly
disrupted the economy). From 1950 to 1978, China's per capita GDP on a purchasing power
parity (PPP) basis,8 a common measurement of a country's living standards, doubled. However,
from 1958-1962, Chinese livings standards fell by 20.3%, and from 1966-1968, they dropped by
9.6% (see Figure 1). In addition, the growth in Chinese living standards paled in comparison to
those in the West, such as Japan, as indicated in Figure 2.
Figure I. Chinese Per Capita GDP: 1950-1978
($ billions, PPP basis)
1,200
1,000
800
600
400
200
0
195019521954195619581960196219641966196819701972197419761978
Source: Angus Maddison, Historical, Statistics of the World Economy: 1-2008 AD.
6 The Organization for Economic Cooperation and Development, Chinese Economic Performance in the Long Run,
960-2030, by Angus Maddison, 2007.
7 New York Times, Editorial, Mao 's Great Leap to Famine, December 15, 2010.
8 Purchasing power parities are a method used to measure and compare the economic data of other countries expressed
in U.S. dollars. That method adjusts the data to reflect differences in prices across countries. This method is discussed
in more detail later in the report.Congressional Research Service
3
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Morrison, Wayne M. China's Economic Rise: History, Trends, Challenges, and Implications for the United States, report, September 15, 2017; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc1042483/m1/7/: accessed July 17, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.