Since China was communist, there were no wealthy people, and little industrial power in China, and the standards of living were very low.
With the advent of business, industry and capitalism, China now has the fastest growing economy in the world, but still has a long way to go to catch up to the West.
China has been torn apart for just about the entire 20th century by political upheavals and revolution, and that's set the country back by more than a century.
Personally, I wouldn't classify China as a third world country anymore.
But there are still so many millions of Chinese peasants, achingly poor and subsisting on minimal incomes.
Hong Kong showed the rest of China the way to prosperity.
Who would have ever thought that in our lifetimes we would see Chinese billionaires? Yes, China is rising to be a superpower, but it still has a long way to go.