Analysis On China Economy December 21st, 2009
Ever since the demise of Mao Zedong, founder of China’s communist party, his successor, Deng Xiaoping, opened China’s gates for overseas investments and businesses that made it an economic world power it is today.
Contrary to the communist principles that Mao strongly opposed during his seat in control, Deng have turned the country from a communist agrarian system of economy into a capitalist based economy.
Today, China is the principal exporter of manufactured merchandise in the world. A lot of western businesses outsource their labour force in China particularly due to the low labour costs.
Over the last ten years, it is irrefutable how China has physically transformed itself and created an elaborate form of economy. This year’s forecast in China’s economy look ahead to a 7-9 percent growth in GDP.
Business expertise is also widespread among the Chinese. A good number of Chinese from numerous countries around the world has a lot of them make their livelihood by way of business and most of their businesses are stories of accomplishment.
Even though China’s economy is on the rise, a lot of finance experts still see heaps of obstacles that could halt its development or even cause its economic demise.
Economic imbalance is one of these factors. One of which is the one-sided development between the metropolitan and rural areas. As the urban population in China experiences an improvement in their lives, a lot of people in the rural areas still come across hardships particularly in the farming and housing communities.
This situation might somewhat resemble Mao’s “Great Leap Forward” where Mao ordered farmers to become steel workers resulting to China’s starvation. Today’s China, however, have learned from past errors and is somewhat mindful to its food production but more improvements are necessary before it can attain perfect balance.
The political climate in China can also be a possible barrier. So far, every dissent in the country has been suppressed with no mercy within its mainland and other places they claim to be theirs such as Tibet.
In order for China to hold its rule over the Tibetans is by migration of the Chinese population to Tibet, constructions, and banning freedom of expression.
Other sections in China like the region of Xinjiang, home for significant number of Chinese Muslims known as Uighurs, is also experiencing both economic and political volatility because of unrest.
The most serious of all potential causes for China’s development is climate change. The pollution and carbon emission China gives off has risen just over the last 20 years and has now overtaken America. The consequences could not just upset China, but also its bordering countries and countries around the world. The irreparable effects of climate change will bring about rising sea levels will without doubt cause problems in China’s south, and could even melt glaciers from China’s western part and the Tibetan region which will flood towns and cities and also cause a water shortage since these glaciers are an important water source for numerous streams and lakes.