CHINA - The Mysterious Success of Communist-Social-Capitalism

Arno Froese

Key economic data in China surged dramatically in the first two months of 2021, pointing to a continued recovery for the world’s second largest economy.

China’s industrial output grew 35.1% in January and February compared to the same months last year.

Looking back to 2019 before the pandemic hit may give a more accurate picture of what is happening to economic activity in China.

Industrial output was up 16.9% compared with the first two months of 2019, highlighting the stronger output.

A rebound in foreign demand has helped push export growth higher for China, often called the world’s factory. 

The Chinese government has set a modest annual economic growth target for 2021, at above 6%, even though analysts are tipping growth of around 8%. 

China was the only major economy last year to report positive growth, with an expansion of 2.3%.

The government imposed travel restrictions before the Chinese New Year holidays, which fell in February this year. This suppressed spending on travel, restaurants and leisure activities.

However, retail sales data showed the top growth items were jewelry (up 99%) and cars (up 78%).

“These items tell us that Chinese consumers spent lavishly during the Chinese New Year holiday,” said Iris Pang, Chief Economist for Greater China, at ING bank., 15 March 2021

Arno's Commentary

The somewhat mysterious rise of communist China has perplexed many. With 1.4 billion people, it seems like their future has just begun.

While religiously they are officially atheist, the CIA Factbook reports 18.2% Buddhist, 5.1% Christian, 21.9% folk religions, and 52.2% unaffiliated. 

The per capita GDP is listed as $16,117 (2019).

Since 2005, the Chinese currency has gained 20% against the US dollar. China is the world’s largest exporter, with the world’s largest motor vehicle market. And, based on their fast-growing economy, communist China will dominate most of the world’s markets, as did the US in the past.

What is the secret? The capability to implement drastic changes in manufacturing, financing, and merchandising. We may call China the communist-socialist-capitalist society. They are adept at adjusting their strategy and quickly implementing changes based on global markets and available data.

From a Biblical perspective, we see China as the great giant of the East, neglected by European powers—including the USA—for centuries. They must develop to reach global norms based on equality, which they have in the past and will do so in the future. 

Nevertheless, China—just as all other nations of the world—does not have an eternal future. That is reserved for the nation of Israel and the body of Christ, His Church, the temple of the Holy Spirit.

Arno Froese is the executive director of Midnight Call Ministries and editor-in-chief of the acclaimed prophetic magazines Midnight Call and News From Israel. He has authored a number of well-received books, and has sponsored many prophecy conferences in the U.S., Canada, and Israel. His extensive travels have contributed to his keen insight into Bible prophecy, as he sees it from an international perspective.

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