Analysis On China Economy
In 1976, Mao Zedong died and China’s seclusion ended. Its next person in charge, Deng Xiaoping, opened the gates of China for external investments and companies that made the country an economic world power it is today.
The communist ideals that Mao started have forbidden businesses in the country but Deng have turned the country from a backward agrarian economy into a capitalist based economy.
Nowadays, China is the leading exporter of manufactured goods in the world. A lot of western businesses subcontract their work force in China purposely because of the country’s low-cost labour.
Eversince the late 90’s, it is indubitable how China has physically transformed itself and shaped an elaborate form of economy. The forecasted China’s GDP for 2009 is said to be up 7%-9%.
The Chinese are also renowned for their business skills. In countries that have a large inhabitants of Chinese, a lot of them make their living by entrepreneurship and most of their businesses are stories of success.
As China’s economy continue to rise, a lot of finance experts still see lots of hurdles that could languish the country’s growth or even break it.
Economic imbalance is one of these factors. One of which is the uneven development between the urban and rural areas. Despite the improvement on the urban lifestyle, a lot of China’s rural population still come across hardships particularly within the housing and agricultural sectors.
Taking quite a few page from “The Great Leap Forward” where Mao converted farmers to become steel workers that resulted to widespread famine. Today’s China, however, have a more balanced food production than ever before but it still has a long way to go before it can attain perfect balance.
China also has its share of problems concerning politics and how it is being handled. So far, the ruling communists have been successful in suppressing balk and opposition within its mainland and other places they claim to be theirs such as Tibet.
The way China is keeping Tibet under its control is by migration of the Chinese population to Tibet, constructions, and banning freedom of expression.
Another area known as Xinjiang, home for big number of Chinese Muslims known as Uighurs, is also experiencing both economic and political instability because of strife.
The last thing that is probably the most serious of all is climate change. A large percentage of the world’s overall carbon emission is produced by China. The consequences could not just upset China, but also to countries near or far away. Climate change is possibly irreversible and rising sea levels will definitely 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 various streams and lakes.
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