Before 1911, China was still under absolute monarchy, which was Qing Dynasty. The economy during that period was agricultural based, not by trading or colonies. Unlike Western countries, there was no industrial revolution happened in China. Due to the closed economy (or self seclusion), China did not receive any new technology to improve the developments in many areas.
There are three characteristics of the traditional Chinese economy before 1911. The first characteristic is highly productive agriculture. Due to the high population, food supply was the priority thing to concern at that period. Also, there were many labor and land (as we know that there was no tall buildings and railway network in China at that time). This caused a high productive rate in agriculture and that’s why Qing Dynasty thought that they did not need to trade with other: because they could feed by themselves.
The second characteristic is commercialized economy. During that time period, Qing had its own national and private bank system. People used paper money (also gold and silver) to buy goods and services, and used the labor to earn money. However, the monetary value was defined in local area (or we can say in the nation only) because there was no international trading. …show more content…
The reason of Chinese government used command economic system before, is government control over the price system designed to mobilize resources for big-push industrialization. The government has clear policies to citizen to following; such as agricultural collectives in countryside and material balance planning in which planners directly assign resources to priority uses. But agriculture and sectors did not work much in 1952 to 1977, because the household consumption grew was less than gross capital formation grew, it showed there was not obvious improvement between product and service
There are three characteristics of the traditional Chinese economy before 1911. The first characteristic is highly productive agriculture. Due to the high population, food supply was the priority thing to concern at that period. Also, there were many labor and land (as we know that there was no tall buildings and railway network in China at that time). This caused a high productive rate in agriculture and that’s why Qing Dynasty thought that they did not need to trade with other: because they could feed by themselves.
The second characteristic is commercialized economy. During that time period, Qing had its own national and private bank system. People used paper money (also gold and silver) to buy goods and services, and used the labor to earn money. However, the monetary value was defined in local area (or we can say in the nation only) because there was no international trading. …show more content…
The reason of Chinese government used command economic system before, is government control over the price system designed to mobilize resources for big-push industrialization. The government has clear policies to citizen to following; such as agricultural collectives in countryside and material balance planning in which planners directly assign resources to priority uses. But agriculture and sectors did not work much in 1952 to 1977, because the household consumption grew was less than gross capital formation grew, it showed there was not obvious improvement between product and service