ABSTRACT
China's development under Mao experienced a series of setbacks, due in part to the regime's lack of expertise and experience. These setbacks had led to major mistakes in policy-making and to poor management. China's economy was rather backward in 1978 when the CCP ended the decade-long Cultural Revolution and shifted its priority from class struggle to modernization. Reform policies injected new dynamism into the Chinese economy. As a result, China has maintained an annual average 9" growth rate in the past three decades. In spite of China's impressive growth, its per capita GDP is still only one-seventh or one-eighth the level of the most developed countries. Because agriculture is generally less efficient than industry, farmers earn less than urban workers, business people, officials, and middle-class urban residents. In spite of the rapid growth in the past 30 years, the Chinese government continues to face serious challenges with regard to inequality and worsening environment.
