Mao Zedong Economy Analysis

China, once a world superpower in an economic sense, has begun to relinquish the crown, due to a slowing economy. Over time China has shifted from a communist economy to a consumer-led economy. The transition, as vital as it was, lead to a decline in the flourishing economy. Despite many opinions on the implications of this transition, it is not necessarily a negative event, depending on the frame of reference used when analyzing the situation. China’s economy may be slowing, but it remains a capable player in world trade. Looking back at history, Mao Zedong led China in the ‘Great Leap Forward’ which was the establishment of a command economy; where spending, production, and investment are regulated and controlled by the government. This form of economy is a key feature in a communist nation. Communism was not supported in the …show more content…
Expectations for additional layoffs and collapse of companies are becoming more prevalent in the economic conversations. China, like many other countries, is in rising debt, which equals approximately two hundred sixty percent of the annual economic output. High levels of debt are not the only impediment to China’s future; exports, which once accounted for thirty-four percent of the economy are currently only twenty-two percent. Due to the slack demand from developed countries, China’s export levels are not likely to increase anytime soon. This shift in demand is presumably a major root of the problem because consumers interest in foreign commodities has changed and results in lacking investment for China. Economists and other Chinese citizens are aware of the prevalent issue and in response, they are beginning to invest in other countries, hoping to preserve their money. Moving money out of their own country is only lending a hand to the issue because further investment is deprived of the Chinese