Risks On China Economic Growth
In 1976, Mao Zedong died and China’s isolation ended. Its next leader, Deng Xiaoping, opened the gates of China for overseas investments and companies that made China an economic superpower.
Contrary to the communist beliefs that Mao strongly opposed in the course of his seat in power, Deng have turned China from a backward agrarian economy into a capitalist system.
Leading in exports and manufacturing has given the country a great economic advantage and in the world market. Overseas businesses, particularly from the US, outsource their labour force in China particularly because of the country’s low-cost labour.
Over the last ten years, 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 roughly 7-9 percent has been the recent forecast for the year 2009.
The Chinese are also recognized for their business competence. In every country around the world where there is a large Chinese populace or China towns, a lot of them make their livelihood by way of trade and most of their businesses are stories of achievement.
Even though China’s economy is on the rise, a lot of finance experts still see heaps of obstacles that could delay its economic growth.
There is a certain economic imbalance that still happens in China. One of which is the one-sided development between the urban and rural areas. Even though the quality of life for people living in urban areas have somewhat improved, a lot of China’s rural population still come across hardships particularly in the farming and housing communities.
This is a bit reminiscent to “The Great Leap Forward” where Mao ordered farmers into industrial workers that resulted to widespread famine. Today’s China, however, have a more balanced food production than ever before but more improvements are necessary before it can attain perfect balance.
The political climate in China can also be a potential barrier. So far, the ruling communists have been successful in suppressing dissent and opposition in its mainland and other places they allege to be theirs such as Tibet.
In order for China to maintain rule over the Tibetans is by migration of the Chinese population to Tibet, constructions, and banning freedom of expression.
Another region known as Xinjiang, where there is a sizeable inhabitants of Muslim Uighurs, is also experiencing both economic and political instability because of strife.
Climate change is an critical factor that poses the most serious peril not just to China but the whole world. China has now greatly overtook the US in carbon emissions and pollution. The costs could not just upset China, but also the other countries. The irreparable effects of climate change will bring about 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 populated areas and cause a scarcity in China’s fresh water supply.
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