When it gained independence in 1947, China was an even poorer nation than we are

- The Conundrum of Economics - Dhaval Mehta

- Now no one rears goats to meet the demand for milk. All drink dairy milk

Despite being the second largest country in the world in terms of national income after the US (population 34 crores), China has a population of 142 crores, there is a huge difference in average per capita income between the two countries. In 2022-2023 the average annual per capita income of USA is 76,399 dollars and where is the average annual per capita income of China is 13721 and where is the average annual per capita income of Putin's Russia which has slipped into power is 14,403 dollars and Jagadguru India is only 2601 dollars and Pakistan is only 1658 dollars?

Remember that when we got independence in 1947, China was a poorer nation than us. Mao gave China his doctrinal Red Book as the Bible of Christendom, and China was devastated. Mao's recommendation that every Chinese citizen should have a small steel factory in his backyard and produce large quantities of steel through it proved disastrous for China, just as in India every family should make its own cloth and have rentiers around the house, the belief of 'small is beautiful' is laughable. proved to be impractical.

Now it is not possible that every state or nation and if possible every region of the nation should become self-sufficient and self-sufficient. No one keeps goats anymore to meet the demand for milk. Everyone drinks dairy milk and today's giant dairies operate not on the principle of small is beautiful but on the company (private or cooperative) model. Due to the tremendous speed of globalization, countries no longer believe in self-reliance but in interdependence. In this context China under Deng in AD. After 1978, in the last 45 years, economic progress was so fast that it overtook the current rich countries of the world like UK, France, Germany, Russia, Spain, Portugal, Italy etc. in terms of GDP. Russia watched and China moved ahead. Of course, China is slightly (but not much) behind Russia in terms of per capita income.

China's economy, which has the second position in the world in terms of GDP, is now in danger. While other countries have been raising bank rates to protect their economies from inflation, China has recently reduced interest rates on one-year loans to a very low .15 percent to boost domestic production. Even in June 2023, the Chinese government reduced the interest somewhat.

It was believed that after the end of the Kovid epidemic, China's economy would move faster than the frontier mail, but that assumption has turned out to be wrong. China's zero covid policy that no one should die from covid has imposed so many restrictions on citizens that China's economic growth has stalled. The Chinese government overreacted to contain Covid. If you only have five rupees in your wallet and it was stolen by a pickpocketer and you shell out a lot of money for it, it can be considered an overreaction. Of course, although China's economic problems are considered marginal, US President Biden has stated that China's economy is a 'ticking bomb', i.e. a ticking time bomb, because China's economy boomed with high economic growth rates in the 1990s and 2000s. It was no longer possible in 2023 and beyond. Why? China can slip into recession at any time. This year, China's yuan has depreciated five percent against the US dollar. The unemployment graph in China seems to be going higher and higher.