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The Chinese Economic Boom (中国的经济繁荣, Zhōngguó de jīngjì fánróng) is a term used to refer to China's rapid growth since 1927.
After the Kuomintang reunified the country in 1927, China entered a period of relative prosperity despite civil war and Japanese aggression, with the industrial sector growing rapidly. Though it was badly hit by the Great Depression and the Japanese occupation of Manchuria, industrial output returned to its peak in 1936 and surpassed its previous peak in 1931, prior to the effects of the Great Depression. During the Great Depression, the overproduction of agricultural goods led to massive falling prices as well as an increase in foreign food imports (since agricultural goods were "dumped" in China). Meanwhile, incomes in rural areas nearly halved.
The Sino-Japanese War briefly interrupted the economic boom. With the help of the Japanese, the communists gained control of much of China, and eventually the Republic of China retreated to Taiwan. The communists made several reforms, including farm privatization (instead of collective farms), and equally distributed land. They place emphasis on its heavy industry, building hundreds of shipbuilding, petrochemical, steel etc. factories all across the country. They also placed a conservative monetary policy and tight fiscal measures, lowering inflation to 5%. Like Japan, China's economy was dominated by large conglomerates, however in China, these conglomerates were state-owned. Growth accelerated during this period, fueled by a high demand for exports (such as refined petroleum, arms, and ships).