The growth of Chinese economy, including the economic transformation, is an important topic in the framework of global political economy . So this article will focus  on Chinese trajectory to transform from agrarian society to an industrial power. as well as explaining such a significant transformation, no doubt, needs reviewing briefly the political system, thus a summary about Chinese communism and its roots throughout Marxism, Leninism, and Maoism is discussed alongside with the contradiction between Mao and Marx’s theory. The Chinese economy transformation, including such a economic reforms and economic transitions is shown. The policies that adapted and contributed to raise Chinese as the powerful economy are explained.

Introduction

The quickly developing economy of China throughout the last three decades  is one of the most notable events in world economic history, it has puzzled many people, including economists. It is important to ask that how could a nation with 1.4 billion people transform itself relatively suddenly from a vastly impoverished agricultural land into a formidable industrial powerhouse when so many tiny nations have been unable to do so despite their more favorable social-economic conditions? The experience of modern China was significantly changed by the foundation of the Chinese Communist Party (CCP) in 1921 which was it is rising has molded the historical backdrop of China for the greater part of the twentieth century, practically from the establishing of the Chinese Communist Party (CCP) in 1921 to its assumed control over the state control in 1949. Furthermore, it is difficult to comprehend advanced China without having an unmistakable picture of what "socialism" implies and the path in which European socialism was adjusted in China somewhere around 1920 and 1949. Today CCP numbers more than 65,000,000 individuals and it has controlled China for over a large portion of a century.

The period from 1917 to the mid 1950s witnessed various nations, containing one-third of the world's population, refuse the market as an instrument for the designation of resources and the determination of production, and instead embrace the so called Soviet model of essential planning. This model included a number of key elements, such as: material offset, making arrangements for allocating resources; collectivized agriculture; price, wage, interest rate and exchange rate control; emphasis on heavy industry dominated by large state possessed enterprises with little main concern given to the production of consumer goods; foreign trade control through state trading monopolies; emphasis on economic autarky; and discrimination against the private sector.

Bai, Hsieh and Song (2014) clarifies that when China comes to beginning a business, it positions close base, scarcely above countries like Ethiopia and Iraq. The Chinese experience is illustrated as a developing rapidly, economy, yet this is still developing under extractive organizations, under the control of the state, with minimal indication of a move to comprehensive political organizations under extractive foundations.

A paradox of the reform process in China is that, as the (CCP) has loosened its grasp on the economy and seemingly abandoned its center convictions, its membership has risen notably alongside the economic benefits from joining.

First: the rise of Chinese Communism

1. Communism

Communism is an old thought concentrated on the common ownership of goods. It is initially recorded in ancient Greek thought, most remarkably in Plato’s exposition of the great society – the Republic – written 2500 years ago. After that, the idea of communism discovers episodic published expression in such works as Thomas More’s Utopia (1516), works by Gabriel Bonnot de Mably, and Morelly’s Code of Nature (1755). Its chief motivation is moral: the abandonment of private ownership of goods and property was thought to give rise to social agreement, as people stopped putting their private enthusiasm above the combined good. It has therefore showed up in various types of productive system.

Encyclopedia Brittanica defines communism as “the political and economic doctrine that aims to replace private property and a profit-based economy with public ownership and communal control of at least the major means of production (e.g., mines, mills, and factories) and the natural resources of a society”. Communism is thus a form of socialism, a higher and more advanced form, according to its advocates.

Communism is an extremely optimistic nineteenth century European political theory. When Marx first published his theory, it offered the most complete picture of the past ever developed and, on the basis of that portrait, expected dramatic alteration coming in the future, changes that would benefit all but the wealthiest layer of European society and would, Marx thought, lead to a virtually perfect and lasting world order.

Karl Marx notably visualized the state “withering away” in the highly developed stage of communism. Outsiders have consistently made a relative supposition about the Communist Party shriveling ceaselessly with marketization. In China, the Party honed great control over pay and advancement amid the arranging stage.

2. Chinese communism

It is stated that Chinese communism is based upon a three-stage movement of communist thoughts from Marx to Lenin to Mao. To comprehend Maoism and the uniqueness of Chinese socialism, it is important to give a summaryabout the European socialism from which it developed:

-          Marxism

Marx was an exceedingly educated man and he drew his contemplation from various sources. Two of these sources were the most vital: one was the idea that German intellectual G.W.F. Hegel (1770-1831), and the other was a group of political advancements, known as "communism," that spread over Western Europe in the wake of the French Revolution.

a. Hegel had numerous thoughts, however, two specifically impacted Marx:

1) In depicting the way in which the human mentality had advanced from primitive to humanized stages ever, Hegel asserted that the procedure of inventive work was the engine that supported the development of progressively complex structures of " consciousness”, or mental points of view on the world. That is, the advanced structures of comprehension that we have as people and that the species now has overall had been made through centuries of our creative cooperation with our general surroundings; they were not initially display in the species.