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Economic Growth and Challenge: China

Economic activity, modified communism and the role of government

  • 3 things to know
  • Component 3 Section B

Overview

Regional pattern of economic activity in China, command economy under Mao and great Leap Forward.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

Describe the regional pattern of economic activity in China.

Numbers

How large is the coastal-interior income gap in China?

Numbers

What was the command economy under Mao?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    Describe the regional pattern of economic activity in China.

    Model answer

    Wealth concentrates in the coastal provinces from Guangdong through Zhejiang and Jiangsu to Shandong and Liaoning. Interior and western provinces such as Gansu and Guizhou have much lower incomes.

  2. 2

    How large is the coastal-interior income gap in China?

    Model answer

    GDP per head in Beijing, Shanghai and Jiangsu was several times that of Gansu or Guizhou in the early 2020s. The gap narrowed after 2010 but remains wide.

  3. 3

    What was the command economy under Mao?

    Model answer

    The state owned industry, set output targets and abolished private trade after 1949. Farmers were collectivised into communes, and prices carried no market signal.

  4. 4

    What was the Great Leap Forward?

    Model answer

    The Great Leap Forward from 1958 forced rapid collectivisation and backyard steel production. Agricultural collapse and famine followed, killing tens of millions.

  5. 5

    What is meant by modified communism in China?

    Model answer

    Modified communism keeps one-party political control while allowing markets, private firms and foreign investment. Deng Xiaoping called the approach socialism with Chinese characteristics.

  6. 6

    What did the Household Responsibility System do?

    Model answer

    The Household Responsibility System from 1978 let farming households keep and sell output above a state quota. Grain production rose sharply within a few years.

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