During the 1960s and 1970s, a fierce competition arose among the major economic blocs, particularly in the manufacturing sector and among large-scale, high-output factories, These conflicts unfolded between the United States, Europe, and Japan. At that time, the competition centered on production volume and quality, as well as the ability to offer goods of the highest quality at the lowest prices.

Meanwhile, the People’s Republic of China, which had been closely following the industrial developments taking place around the world, took notice; and this poor country harbored the dream of entering the industrial sector, but reality suggested that it would be difficult—if not impossible—for this nation, which at the time had a population of 800 million, —most of whom had received no education, as the illiteracy rate among the Chinese population exceeded 90%—to take such a step. The currency was suffering from severe inflation, and prices were constantly rising, which was accompanied by a decline in the standard of living.

Amid this state of economic collapse and challenges, the staggering population growth, and the diversity of more than fifty nationalities and ethnic groups, it managed, through sound planning, to turn all its weaknesses into strengths. It harnessed the population growth for labor and utilized the workforce at low wages, and it was able to protect itself from falling into any crisis, and it was not forced to devalue its currency as East Asian countries did, because the Chinese currency is not pegged to any foreign currency; consequently, no foreign power can manipulate its exchange rate, and it is thus immune to the impact of external pressures on its economy and currency.

It has also moved to reform its administrative system and streamline procedures for foreign investment, prompting major manufacturers from all over the world to rush to China to establish production facilities and take advantage of the cheap, skilled labor force.

In a few years, China could become the focal point of global competition, as evidenced by the volume of trade between China and the United States, which exceeds one trillion dollars annually, and the trade deficit in China’s favor, amounting to sixty billion dollars annually.