China's Economy and Society in the Late 1940's and 1950's

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China's Economy and Society in the Late 1940's and 1950's

In 1945, the war with Japan had ended. It left China's economy and

society in ruins. The country was divided in two. Most of China was

ruled by Chiang Kaishek, a military dictator. The rest of China was

ruled under communism by Mao Zedong.

Chiang Kaishek aimed to modernise the railways, the postal services

and the telecommunications. In addition, powerful foreign companies

such as ICI and Standard Oil were encouraged to construct factories in

China to aid its backward industry.

Chiang Kaishek then created The New Life Movement. It was based on the

four principles of ancient ideas - Li, I, Lien and Chih. 'Li' means

courtesy; 'I' means service towards your fellow men and towards

yourself; 'Lien' honesty and respect for the rights of others; and

'Chih' means high-mindedness and honour. Great emphasis was put on The

Movement but it didn't deal with any real problems: - poor housing,

lack of medical care and poverty. This meant China still had basic

welfare problems.

The liberation areas were made up of poor and mostly small farms. The

Communists and their leader, Mao Zedong began making land reforms. Big

estates of land were taken from the rich landlords and shared out

among peasants who did not have land of their own.

The communists also introduced many social reforms, particularly for

women. Outdated and undesirable practices such as foot binding, murder

of unwanted babies, child slavery, prostitution and sale of women were

all made illegal.

In January 1949, Chiang Kaishek retreated to the only part of China

not under communist control, the Island of Taiwan. He took with him

200,000 Guomindang troops as well as all of China's gold reserves.

Chiang Kaishek ruled Taiwan as the Republic of China.

On 1 October 1949, the communists were able to proclaim the existence

of a new China - the Peoples Republic of China. The Civil War had

ended, the country had no gold and the country's infrastructure was

destroyed by war.

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