PRC’s Grip over China’s Wild West

In the beginning of October 1949, the bloody Chinese Civil War was nearing its end, and Mao Zedong had proudly declared the foundation of the People’s Republic of China (PRC). With the Nationalists defeated, the Chinese Communist Party (CCP) could now focus on its aims on fully reuniting the country and instituting socialism. The disastrous effects of the latter aim are well-known.

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Underground Economy And Wasted Potential

Imagine a world in which up to one half of a country’s gross domestic product (GDP) was not taxed. Imagine capitalist investors and heads of companies escaping the long-handed reach of state coffers, thereby avoiding their due contribution of hundreds of millions of dollars to the very citizenry that helped create their wealth to begin with.

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