How China Became An Economic Power

China’s success is credited to its former leader Deng Xiaoping who opened China’s gates for external investments and businesses that made China an economic powerhouse.

The communist ideals that Mao started have banned businesses in the country but Deng have turned China from a communist agrarian system of economy into a capitalist based economy.

Leading in exports and manufacturing has given the nation a great economic advantage and in the world market. Plenty of western businesses outsource their work force in China purposely due to the low labour costs.

In just a decade, China was able to transform itself into a highly developed country packed with new and modernized skyscrapers and an elaborate form of economy. The forecasted China’s GDP for 2009 is believed to be up 7%-9%.

Business aptitude 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 way of trade and most of their businesses are stories of achievement.

In spite of the optimistic views on China’s economic growth, a lot of finance experts still see plenty of barriers that could languish the country’s growth or even break it.

Economic imbalance is one of these causes. One of which is the urban and rural areas’ imbalanced development. As the urban population in China experiences an improvement in their lives, a lot of China’s rural population still come across hardships particularly within the housing and agricultural sectors.

This is to some extent reminiscent to “The Great Leap Forward” where Mao ordered farmers into industrial workers that resulted to widespread famine. Today’s China, however, have learned from earlier mistakes and is somewhat mindful to its food production but it still has a long way to go before it can attain perfect balance.

Another deterrent is China’s tense political and societal environment. So far, dissent and objections have been handled harshly in its mainland and other places they allege to be theirs such as Tibet.

China is also poised to keep Tibet under an iron grip and their way of doing this is by emigration of the Chinese population to Tibet, constructions, and banning freedom of expression.

Other regions in China like the province of Xinjiang, where there is a sizeable inhabitants of Muslim Uighurs, is also experiencing both economic and political instability because of unrest.

The most serious of all probable causes for China’s development is climate change. A large percentage of the world’s total carbon emission is produced by China. The costs could not just upset China, but also its bordering countries and countries around the world. The amount of carbon dioxide getting stuck on the planet will cause rising sea levels will certainly cause problems in China’s south, and could even melt glaciers from China’s western part and the Tibetan region which will ultimately be a source of flooding and fresh water shortages.