A farmer's choice sparked China's rise as a global manufacturing hub

A Chinese farmer named Yan Hong Chang and 17 other villagers bypassed the state's agricultural point system in 1978 to claim individual land plots. This move allowed them to keep more of their harvest, causing their personal income to rise from 22 yuan to 400 yuan.

The Chinese government, led by leader Deng Xiao Ping, chose to support this initiative because it increased national crop production by 33 percent between 1978 and 1984.

As agricultural yields improved, many farmers moved to cities to find new work. This provided a massive labor force for a growing industrial sector. Investors from Hong Kong, such as factory owner Zang Zimi, took advantage of this low-cost labor by establishing factories in mainland China. To balance foreign investment with state control, the Chinese government created four special economic zones on the coast.

These zones offered incentives for foreign companies to build factories and transfer industrial expertise to the country. Simultaneously, rural residents established small workshops for clothing and bricks. These village and town enterprises grew rapidly, with the number of workers in these projects rising from 28 million in 1978 to 135 million by 1996. The industrial network eventually expanded to meet the demands of American retailers who needed high volumes of goods at low prices.

China moved beyond simple assembly to build a complex system of local suppliers for components, packaging, and maintenance. By 2020, China accounted for roughly one third of global industrial production, a transformation that helped lift 800 million people out of poverty.