The Pros And Cons In China’s Economy

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 it an economic superpower.

The collective ideals that Mao started have banned businesses in the country but Deng have turned the country from a backward agrarian economy into capitalism.

Today, China is the top exporter of manufactured goods in the world. Foreign businesses, mostly from the United States, outsource their labour force in China specifically because of the country’s low-cost labour.

Over the last ten years, it is irrefutable how China has physically transformed itself and created an elaborate form of economy. The forecasted China’s GDP for 2009 is assumed to be up 7%-9%.

The Chinese are also renowned for their business aptitude. A good number of Chinese from different countries around the world has a lot of them make their income through selling all kinds of consumer goods 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 heaps of barriers that could languish the country’s growth or even break it.

There is a certain economic imbalance that still occurs in China. One of which is the issue of imbalance in terms of development in favor of urban areas over rural. Even though the quality of life for people living in urban areas have somewhat improved, a lot of China’s rural population still experience hardships particularly the lack of good agricultural equipments and housing conveniences.

Taking quite a few page from “The Great Leap Forward” where the chairman converted farmers to become steel workers that resulted to widespread famine. Today’s China, however, have learned from past mistakes and is somewhat sensible to its food production but more improvements are necessary before it can attain perfect balance.

Another obstacle is China’s tense political and societal environment. So far, the ruling communists have been successful in suppressing balk and opposition in its mainland and other places they allege to be theirs such as Tibet.

The way China is keeping Tibet under its rule is by emigration of the Chinese population to Tibet, constructions, and banning freedom of expression.

Other areas in China like the region of Xinjiang, and a home for minority Uighurs who are Muslim, is also experiencing both economic and political unsteadiness because of unrest.

The most serious of all possible causes for China’s development is climate change. A large percentage of the world’s total carbon emission is produced by China. The consequences brought about by this could not just upset China, but also the other countries. The irreversible 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 towns and cities and also cause a water shortage since these glaciers are an important water source for various streams and lakes.