Before the 19th century came China had stood as a leading civilization outranking the rest of the world with its immense education and knowledge in the arts and science field, but after that Chinas been facing several military defeats. After World War II, the Communists under MAO Zedong established a dictatorship that, while ensuring China's sovereignty, imposed strict controls over everyday life and cost the lives of tens of millions of people. After he died his successor DENG Xiaoping gradually introduced market-oriented reforms. It wasn't exactly bad because output quadrupled by 2000. Even though the economic controls are relaxed the political control remains tight. In late 1978, China used to be a slow growing economy to a more market oriented system. Course now the market system is under strict communist control. The result has greatly aided GDP. As a matter of fact, it has been quadrupling since 1978. China had an estimated 1.3 billion citizens with a GDP of $5,000 per capita, even with this China still ranks the second largest economy in the world...with the United States ranking first. The major gains in the country are agriculture and industry, especially along areas near Hong Kong and Taiwan; especially when foreign investment helped boost the profit acquired in domestic and exported goods. Because of the socialist government the leaders as well as the leadership in general the worst result of socialism, the problems lie in several issues. One, the difficulty in collecting revenue due from provinces, businesses, and citizens. Two, reducing corruption and other economic crimes. Three, keep afloat the large state owned enterprises. Another and furthermore more important if not with all countries is pollution. This leads to the deterioration in the environment as well as soil erosion and the fall of the water table especially in Northern China. The erosion though creates more than just that. Because o
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