When you’re crafting your theories about how the world should and could work, there’s one rule you should always keep in mind: Don’t assume you can do something just because China has done it, and don’t assume China can’t do something just because you haven’t managed to do it. The world isn’t a one-size-fits-all place. And if you don’t understand that, you’re missing the bigger picture.
Let’s break this down, because understanding this requires a solid grasp of geopolitics—and a sense of the difference between big and small countries and a sense of context.
1. China’s Success Isn’t About Private Enterprises
Let’s get one thing straight: China’s success isn’t because of private enterprises. Every poor country has private enterprises. What sets China apart is the foundation it built long before Deng Xiaoping took the reins. Not the least of it is that China emerged as a completely new state in 1949 after a century of wars and a complete victory against its foreign and domestic enemies.
Well before Deng continued the Reform and Opening Up process set in motion by Mao Zedong, China had already laid the groundwork: an extensive irrigation system for agriculture, a robust industrial base for manufacturing, and state-owned enterprises designed to generate profits. After all, you can’t reform and open up nothing—you need something to work with. That “something” was the proud spadework of Mao and his generation of communists.
Market economies are efficient, sure, but they’re not always fair. That’s where Chinese socialism comes in. In China’s seemingly effortless rise, capital and markets are just tools—tools for the ultimate goal of development and a better life for all Chinese, who had been left behind since the Industrial Revolution.
You might argue that China succeeded because of capitalism or because of socialism. But here’s the truth: China succeeded because of China. Both capitalism and socialism are just tools in the toolbox.
2. Small Countries Don’t Have China’s Advantages
Small countries like North Korea and Cuba don’t have the luxury of being a super-sized nation like China. Today’s world order is dominated by the West, which is, in turn, dominated by the U.S. Even China has to navigate this system, though it’s learned the rules quickly and eventually beat the West at its own free-trade game.
But let’s be real: the U.S.’s sanctions and embargoes against North Korea and Cuba are enough to keep those countries poor. Don’t use China as a counterexample. The U.S. has tried the same tactics on China, but they haven’t worked—because China is big, capable, and resilient.
3. China’s Success is Unique and Unrepeatable
China’s rise is a one-of-a-kind phenomenon, and it’s not something that can be easily replicated elsewhere. The historical context is key here: in the 1960s and 70s, China and the USSR were on the brink of war—and they actually fought a brief conflict in the late 70s. At the same time, the U.S. was under immense pressure from the USSR.
This led to Nixon’s historic visit to China in 1972—before diplomatic relations were even established. Why? To form an alliance with a country that has proven itself in the Korea War with the United States and the border conflicts with the USSR, of course. Please note that these were not two random countries. They were the only two superpowers. Can you think of any other country that can do the same?
Anyway, this paved the way for China’s return to the United Nations and Deng Xiaoping’s Reform and Opening Up.
But let’s clarify something: Reform and Opening Up is a bit of a misleading term. What it really means is Market/Commodity Economy Reform and Opening Up to the West. This quasi-alliance with the U.S. allowed Deng to continue the process Mao had started. Until the USSR collapsed in the 1990s, China and the U.S. maintained surprisingly good relations—so good that the U.S. was even willing to transfer military technology to China.
This historical window was a one-time opportunity. No other country—not North Korea, not Cuba, not anyone—has been as fortunate as China to enjoy such a unique set of circumstances.
4. Stop Blaming North Korea and Cuba
So, let’s stop the nonsense about why North Korea and Cuba haven’t “reformed and opened up.” The answer is simple: they can’t. They have enemy armies at their doorsteps, ready to pounce at any moment. China faced similar challenges, but it rose to them through a combination of size, strategy, and historical timing.
Context Matters. So does an Understanding of Geopolitics!
China’s success isn’t just about policies or economic models—it’s about the unique historical, geopolitical, and cultural context that allowed it to thrive. So, the next time you’re theorizing about how the world should and could work, remember: what works for China might not work for others, and what others can’t do doesn’t mean China can’t.