If you go take a tour in China, you will get to see all kinds of markets everywhere. If you wish to eat at McDonald's, you will find it easily. If you feel thirsty and want something hot, you will find Starbucks at the end of every street. It is not the government telling the people/companies what to produce. That means it is capitalism. So, what exactly is happening in communist China?

GDP Growth in China

If you take a look at the above graph, China's GDP has grown rapidly and immensely. It is no doubt that it was able to achieve this massive number only with communism.

If you look at the statistics, today, China is the world's leading export nation ahead of the United States and Germany. According to the official World Bank figures, the percentage of impoverished people in China in 1981 was 88%. By 2015, only 0.7% of the Chinese population lived in poverty. In this period, the number of poor people in China fell from 878 million to less than 10 million.

China provides clear evidence of the power of capitalism established in the country. China has over time, progressively welcomed the tenets of free-market economies, including the concept of private ownership, and has gradually reduced the effect of communism on the Chinese economy.

China has established more and more economic zones in the country that resulted in its GDP growing at a rapid rate, year after year.

Difference Between China and North Korea

China is a communist country and the Communist party does control it. But, it is very clear that this country is open to the free market at the same time.

China is a country that perfectly shows the concept of the "invisible hand of capitalism". And how using this concept will lead to more economic growth. In North Korea, the government totally controls the economy of the country. However, in China, the government only controls a part of the economy and does the job of governing the economy.

Both countries have very different economic systems and have experienced vastly different levels of economic growth in the past years.

One of the major differences is the level of government control over the economy. China has implemented multiple economic reforms that have led to a more free-market-oriented economy. This has allowed for greater private investment opportunities and entrepreneurship. This has helped to drive economic growth rapidly.

On the other hand, North Korea has a highly centralized and planned economy, with very little private enterprise and foreign investment. This was the main reason for a much more stagnant economy where very little economic growth seems possible.

The other difference that could be highlighted here is the level of openness to the outside world. China has actively taken measures to make trade connections with other countries and has always encouraged foreign investment. In contrast, North Korea has very little economic interaction with the outside world and this limits the opportunities for the country to grow economically.

Overall, while both China and North Korea are officially communist countries, their economic systems and levels of economic growth are vastly different, with China experiencing much more economic growth and development.

In summary, China has achieved strong economic growth in recent years due to a variety of factors. These include a large population, government policies that encourage foreign investment and trade, investments in infrastructure and education, and economic reforms that make it easier for businesses to operate and for people to start new businesses.

Despite some controversies, China is likely to continue to invest in innovation and high-tech industries, and domestic consumption in order to maintain its economic growth in the future.