Analysis On China Economy
Ever since the death of Mao Zedong, founder of China’s communist party, his successor, Deng Xiaoping, opened China’s gates for foreign investments and businesses that made the country an economic powerhouse.
The collective ideals that Mao started have banned businesses in the country but Deng have turned the country from a backward agrarian economy into a capitalist based economy.
Leading in exports and manufacturing has given the country a great economic advantage and in the world market. Plenty of western businesses outsource their labour force in China particularly for cheap labour.
Eversince the late 90’s, China was able to transform itself into a highly developed country packed with new and modernized skyscrapers and an elaborate form of economy. A GDP growth of around 7-9 percent has been the recent forecast for the year 2009.
Business prowess is also widespread among the Chinese. A good number of Chinese from different countries around the world has a lot of them make their income by entrepreneurship and most of their businesses are stories of success.
Even though China’s economy is on the rise, a lot of finance experts still see plenty of barriers that could stagnate the country’s growth or even break it.
There is a certain economic imbalance that still happens in China. One of which is the one-sided development concerning the metropolitan and rural areas. Despite the improvement on the urban lifestyle, a lot of people in the rural areas still experience hardships particularly the lack of proper farming equipments and housing facilities.
This situation might somewhat resemble Mao’s “Great Leap Forward” where the chairman ordered farmers to become steel workers that resulted to widespread famine. Today’s China, however, have learned from earlier mistakes and is somewhat sensible to its food production 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, every dissent in the country has been suppressed with no mercy in its mainland and other places they claim to be theirs such as Tibet.
China is also primed to keep Tibet under an iron grip and their way of doing this is by building infrastructures, encouraging Chinese from the mainland to migrate, and crushing oppositions.
Another region known as Xinjiang, and a home for minority Uighurs who are Muslim, is also experiencing both economic and political volatility because of strife.
The most serious of all potential causes for China’s development is climate change. China has now exceedingly overtook the US in carbon emissions and pollution. The consequences could not only upset China, but also its bordering countries and countries around the world. The irreparable effects of climate change will trigger rising sea levels will surely cause problems in China’s south, and could even melt glaciers from China’s western part and the Tibetan region which will flood populated areas and cause a scarcity in China’s fresh water supply.
