Red China Blues Case Study

1344 Words3 Pages

Following the Chinese Revolution of 1949, China’s economy was in ruin. The new leader, Mao Zedong, was responsible for pulling the economy out of the economic depression. The problems he faced included the low gross domestic product, high inflation, high unemployment, and high prices on goods. In order to solve these issues, Mao sought to follow a more Marxist model, similar to that of the Soviet Union. This was to use government intervention to develop industry in China. In Jan Wong’s Red China Blues, discusses Maoism and how Mao’s policies changed China’s economy for the worse. While some of Mao’s early domestic policies had some positive effects on China’s economy, many of his later policies caused China’s economy to regress.

After coming to power in 1949, one of the first domestic policies Mao’s instated was National Capitalism. This doctrine …show more content…

The Five Year Plan nationalized all industries. China took the advice of the USSR and copied their Five Year Plan. In return, China received a $300 million loan from the Soviet Union. More than 11,000 soviet advisors worked in China in the 1950 's to rehabilitate the economy. Jan Wong describes the relationship between China and the USSR in Red China Blues, “For some reason the Chinese were the good guys of communism. The Russians were the bad guys. They had gulags and a menacing secret police called the KGB. The Chinese had pandas and an army in sneakers. Mao was cute, a cultural icon, like Marilyn Monroe.” Wong is commenting on how the USSR helped China because it made them look like Communism had improved their economy. This domestic policy was successful economically because the urban population prospered and grew from 57 million to 100 million by 1957. All industries grew. The heavy industry saw the most growth, while the agricultural industry saw the least. Consequently, prices on goods lowered, including grain

More about Red China Blues Case Study

Open Document