The Pros And Cons In China Economy

Ever since the demise of Mao Zedong, founder of China’s communist party, his successor, Deng Xiaoping, opened China’s gates for external investments and companies that made the country an economic superpower.

Contrary to the communist principles that Mao solidly opposed throughout his seat in control, Deng have turned China 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.  Foreign businesses, mainly from the United States, subcontract their labour force in China purposely because of the country’s low-cost labour. 

Over the last ten years, it is indubitable how China has physically transformed itself and shaped an elaborate form of economy.  A GDP growth of approximately 7-9 percent has been the latest forecast for the year 2009.

The Chinese people also have a natural talent in doing business.  In countries that have a significant inhabitants of Chinese, a lot of them make their income by way of business and most of their businesses are stories of accomplishment.

As China’s economy go on rising, a lot of finance experts still see lots of obstacles that could halt its advancement or even cause its economic demise. 

One of these reasons is economic imbalance.  One of which is the urban and rural areas’ uneven development.  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 situation might somewhat resemble Mao’s “Great Leap Forward” where Mao ordered farmers to become steel workers resulting to widespread famine.  Today’s China, however, have learned from previous errors and is somewhat mindful to its food production but more improvements are needed 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 in its mainland and other places they allege 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, home for considerable number of Chinese Muslims known as 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 completely overtook the US in carbon emissions and pollution.  The costs could not only upset China, but also to countries near or far.  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 flood populated areas and cause a scarcity in China’s fresh water supply.