China's past is fascinating, its present is captivating, and its future is uncertain. Disclaimer: The views presented in this article are my own.

Over the past forty years, China has undergone a remarkable transformation, with its citizens experiencing significant improvements in their daily lives and witnessing the country's rapid industrialization. China's impressive economic progress owes much to its people's hard work, entrepreneurial spirit, and the influence of Western concepts and technologies. Despite China's rich history and ancient wisdom, the nature of innovation and determination has driven the country forward.

China's rapid growth can be attributed to the influence of Western concepts, strategies, and innovations. The idea of free trade, managerial tasks, a market economy, free price competition, western education, and even the Communist Political system originated from Western political, economic, and industrial doctrines.

However, it is worth considering whether this rapid growth is sustainable in the long term or if it could lead to a decline in the future. It is essential to remember that China's development is not solely due to its efforts but also the result of various changes in the global economy over the past four decades that benefited China but may not for the future.

Join me in exploring 12 factors influencing the China transformation (1976-2012). These 12 factors have helped China achieve its current position of power and influence:

1. Culture Revolution. (1965-1976) China's economic growth was made possible by weakening political, military, and communist control of society by the end of the Cultural Revolution led by Mao Tze Tung. Cruelty, harsh social conditions, and the destruction of human civility and culture, including Buddhism, Confucianism, and Western influences, characterize the Culture Revolution. The revolt destroyed established political, social, and economic structures and forced millions of young people to relocate from cities to remote villages. The chaos created by the Red Guard movement left a political void after the Cultural Revolution ended, with a weak political system and a power struggle between communist party factions (Gang of Four and Reformist). In the 1980s, Dang Xiao Ping's "glamour" slogan of becoming rich became the new alternative to the communist doctrine, with millions of Chinese citizens pursuing material wealth as the only goal worth achieving.

2. Collapse of communism in Europe. The fall of communism in Eastern Europe and the Soviet Union taught the Chinese leadership that adhering to strict economic communist principles weakened their hold on power. Dong Xiao Ping, who had received a Western education, understood that fostering economic growth was crucial for maintaining the Chinese Communist government system.

3. Changes in Western economies. In the late 1970s, developed countries began shifting their economies from manufacturing to service industries. This transition did not decrease the demand for goods, leading Western economies to look for alternative manufacturing sources. To meet demand and lower costs, companies began outsourcing production to countries with lower labor costs, such as the Asian tigers (Hong Kong, Taiwan, Korea, and Singapore) and later on to China. China's low wages, vast labor availability, relaxed laws, and growing domestic demand for manufactured goods made it an attractive option for outsourcing. This trend was facilitated by advances in communication technology and liberalized investment laws in the late 1980s, allowing investors to fund opportunities in China easily.

4. Asian Tigers: South Korea, Taiwan, Hong Kong, and Singapore. In the late 1970s, Hong Kong, Taiwan, and Singapore experienced economic growth and wealth creation, which helped fund China's economic expansion. As demand for goods increased in Western countries, companies from these Asian countries moved to China to take advantage of lower labor costs and increased production capabilities. Initially, business people from Hong Kong, Taiwan, and Singapore acted as a bridge between the Western world and China, eventually paving the way for big multinational corporations to invest directly in China.

5. Farmers from Shandong province. In the late 1970s, agricultural reform in Shandong province paved the way for private enterprise in agriculture throughout China. This was made possible when five collective farmers from Shandong were granted permission to sell surplus agricultural products in the city after meeting state-mandated quotas for farm products. As a result, the first individual alternative source of income was created, and the private enterprise system was officially legalized in China for the first time.

6. Economic reforms under Zhu Rongji from 1998 to 2003. During his time in office, Premier Zhou implemented reforms such as the tax system, civil service examination, and merit-based promotions for senior and middle management positions. He also focused on reducing waste and bureaucracy while improving transportation, energy, and agriculture. Thanks to his economic management, China could join the World Trade Organization (WTO) and ASEAN Free Trade Agreement.

7. One Child Policy. Limiting the number of children in the family slows population growth and increases wealth accumulation. While this wasn't the original intent of the Chinese government policy, it has resulted in extra income for families and more funds for material goods. The traditional Chinese value of saving money has led to rapid economic growth, including in the housing sector. As a result, there has been a boom in housing construction that continues to this day due to the importance placed on owning physical property assets.?

8. Chinese Students in Western Countries. Under the One Child policy, Chinese parents could send their children to study in foreign countries. This led to a new generation of young Chinese individuals receiving an education in the West, which has resulted in better connections and familiarity for Western companies to explore business opportunities in China. Moreover, these students are being considered for management positions and are running Western companies in China. Due to their foreign education and language proficiency, these young Chinese individuals are a powerful force for expansion in China. These students establish their own companies and use their Western education and connections to experience rapid growth.

9. Mix Economy. The initial advantages of government intervention, free trade zones, financial support, and the ability to manipulate the Economy and media make a mixed economy more efficient than democratic governments. Singapore, Taiwan, and South Korea have proved this principle. However, over time, the advantages of a diverse economy disappear as financial resources become insufficient and wasteful allocation occurs.

10. Entrepreneur Spirit of Chinese citizens and disrespect for Intellectual Properties. The Chinese have a strong entrepreneurial spirit that has led to a rapid increase in company creation. This drive, combined with a disregard for private property and intellectual laws, has allowed for the theft of foreign and domestic technologies, especially among the older managerial generation. China's rich history as a significant country has provided fertile ground for ambitious individuals. Additionally, the Chinese culture is unique and instills a sense of pride among the Han race. The love for gambling has also taught the Chinese people to take risks and make bold business decisions. As a famous Chinese proverb states, "Chinese hate being first, but they hate being last even more."

11. Migrant workers from villages and poor inland areas. The discipline and relatively well-educated migrant workers who work in construction, manufacturing, and service facilities from the poorest areas of China deserve significant credit for China's rapid development. Despite living in deplorable conditions by Western standards and being often underpaid with minimal social benefits, these workers contribute significantly to the country's growth through hard work and dedication. They are undoubtedly one of the crucial pillars of China's progress.

12. Foreign investors, international corporations, expats,?and workers. China's achievements and growth were helped by numerous foreign investors, managerial experts, and scientists. Both technical and organizational knowledge transfer requires human interaction.

China's impressive economic success over the past few decades is undeniable. However, the country's policy of suppressing self-expression and self-esteem among its citizens hinders its progress toward becoming a more open society. Unfortunately, the lack of alternative outlets has led to a surge in nationalism and anti-Western sentiment among Chinese citizens.

The Chinese government focuses on the domestic market, decoupling from the West, rebalancing the economy, and anti-espionage regulation. This shift will create financial and demand imbalances and slow productive investment. Additionally, the Chinese Economy's overinvestment in low-return infrastructure and limited employment opportunities for young individuals could lead to an explosive situation. One can only wonder how long this situation can be sustained before an event like the Tiananmen Square uprising arises again. Let's keep an eye on this fascinating story of growth and development and see where it takes us. Unfortunately, those 12 factors are invalid and changed dramatically in the last decade. (1) The Culture Revolution was forgotten, and getting reach was replaced by "common prosperity"; (2) the Communist collapse treat is not relevant; (3) the manufacturing trend is reversed with reshoring and decoupling (derisking), (4) Tiger countries' economies became more dependent on China; (5) Farmers is long forgotten and irrelevant in today's China; (6) the premier Zhu Rongji reforms are lost in new regulations; (7) One Child policy is hunting China demographics and from advantage turn to a considerable problem; (8) the study abroad become liability not the advantage in many situations and employment opportunities; (9) Mix economy is irrelevant today when the government thinks can do better to manage the entire economy as in 1950 to 1970s, and if you disagree, you go to jail for valiation new SECURITY Law established recently; (10) entrepreneur spirit is still in China but is carefully watch and manage by the government; (11) hard-working immigrant workers attitudes are changing to "lay flat" approach for life or total resignation; (12) the level of Western support is rapidly declining and there is less willingness to invest. Additionally, there is controversy surrounding Western management, scientific support, and cooperation with China.

Disclaimer: The views expressed in this article are entirely my own and do not represent the company's or its subsidiaries' views or beliefs.