Thursday, September 4, 2008

Economic history of China

According to some and Indian sources, China was the largest economy on earth for most of the recorded history of the past two millennia.

The ''Financial Times'' noted that "China has been the world’s largest economy for 18 of the past 20 centuries", while according to ''The Economist'', "China was not only the largest economy for much of recorded history, but until the 15th century, it also had the highest income per capita — and was the world’s technological leader."

As recently as 1820, China accounted for 33% of the world's GDP. Barely a hundred years later, the tables had turned. By the early part of twentieth century, China accounted for only 9% of world's GDP. The primary explanation for the relative eclipse of China lies in the fact that the industrial revolution of the nineteenth century, which made Europe and then America rich, almost completely bypassed China.

Qing Dynasty



1625 - 1650


China was the world's largest economy followed by India and France. During this period, the territorial domain of the Qing empire expanded substantially. Due to the demand for Chinese products such as porcelain and tea, Qing China was the largest market for Spain's silver exports from her colonies in South America.

1650 - 1675


China was the world's largest economy followed by India and France. From this time to about the 1800s, the seclusion of China on a world-scale grew to its peak during the Ming Dynasty after the Yung-lo emperor's reign in the 1400s.

1675 - 1700


India was the world's largest economy followed by China and France.

1700 - 1725


China was the world's largest economy followed by India and France. Collapse of the central authority of the Mughal Empire and the resultant chaos triggered India's long but slow decline on the world stage.

1725 - 1825


China was the world's largest economy followed by India and France.

1825 - 1850


China was the world's largest economy followed by the UK and India. Industrial Revolution in the UK catapulted the nation to the top league of Europe for the first time ever.

1850 - 1875


China was the world's largest economy followed by the UK, USA and India.

1875 - 1911


USA was the world's largest economy followed by China, UK, Germany and India. Collapse of the central authority of the Qing Dynasty and the resultant chaos triggered China's short but rapid decline on the world stage. The gross domestic product of China in 1900 was estimated at about 50 per cent that of the USA.

Nationalist Republic



1911 - 1925


USA was the world's largest economy followed by the UK, China, France, Germany, India and the USSR. The gross domestic product of China in 1925 was estimated at about 20 per cent that of the USA.

1925 - 1950


USA was the world's largest economy followed by the USSR, UK, China, France, Germany, India and Japan. The gross domestic product of China in 1950 was estimated at about 10 per cent that of the USA.

People's Republic



1950 - 1975


USA was the world's largest economy followed by the USSR, Japan, Germany and China. The gross domestic product of China in 1975 was estimated at about 10 percent that of the USA. Though Mao's collectivization reforms helped arrest the economic decline, China was no longer the largest Asian economy.

1975 - 2000


USA was the world's largest economy followed by Japan, Germany and China. The gross domestic product of China in 2000 was estimated at about 10 per cent that of the USA. Communist reforms initiated by Deng Xiaoping in the early 1980s initiated the current wave of export-oriented economic expansion.

2000 - Present



The size of China's economy has been rapidly increasing, though they have been paying a premium price for this development in terms of pollution and human rights violations.

Further reading


* Duara, Prasenjit, , in ''Comparative Studies in Society and History'', Vol. 29, No. 1 , pp. 132-161, Cambridge University Press

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