The Economic Miracle

Cheap labor: Hundreds of millions of rural workers migrated to coastal factories, providing an enormous labor force at low wages. The 'hukou' (household registration) system, which tied benefits to one's birthplace, kept migrant workers in a precarious position — useful for employers but creating a massive underclass.

Export-oriented manufacturing: China became 'the world's factory,' producing everything from electronics to textiles. The trade surplus funded infrastructure investment.

Infrastructure investment: China built more high-speed rail, highways, and airports in 30 years than most countries build in a century. State-directed investment drove growth but also created debt and overcapacity.

Technology absorption: Joint venture requirements forced foreign companies to share technology with Chinese partners — a practice the US later called 'forced technology transfer' and cited as a trade grievance.

Environmental devastation: By the 2010s, China emitted more CO2 than the US and EU combined. Air pollution in major cities caused an estimated 1+ million premature deaths annually. Rivers and groundwater were heavily contaminated.

Inequality: The Gini coefficient (a measure of inequality) rose sharply. Coastal cities like Shanghai reached developed-world income levels while rural interior provinces remained poor. The gap between urban and rural China is one of the largest in the world.

Debt: Local governments, state-owned enterprises, and the property sector accumulated enormous debt. China's total debt-to-GDP ratio exceeded 300% by the 2020s, raising concerns about financial stability.

Demographic crisis: The one-child policy (1980-2015) created a rapidly aging population. China's working-age population peaked around 2015 and is now declining — a challenge that no amount of economic policy can easily address.