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How laws affect economic activity in China

Economic activity in any country is dependent upon a number of different factors. Out of these factors, one of the most important factors is the various different policies that the government adopts pertaining to the growth of the economy.  You see, while economic growth can have immense benefits including a higher standard of living for people, better jobs and better education opportunities, it can also have severe negative impacts such as environmental degradation and increased power distance.  China is a country that has seen tremendous growth rates for the past few years. With its products being exported all over the world, China has become a hub for economic activity.  While the growth continues to impress economists worldwide, it is essential that we review some policies that impact these growth rates both in a positive and a negative way.  This post will discuss some of the laws that affect economic activity in China.

We cannot separate sociology from economics; it is simply not realistic to not include the basics of sociology into economics. This brings us to a very prominent law in China; the single child policy. According to this policy, Chinese citizens are allowed to have only one child. This policy has been implemented as a method to combat the extremely high rates of births in the country that was leading to a population overload in the country. With the population growth rate being controlled, any economy can perform better as the resources available per person significantly increase if population growth decreases.

China also promotes education and has its own strong education system with compulsory education up to a certain level.  The country believes in creating its own versions of everything which makes it such a fast growing economy. For instance, a Chinese individual is encouraged to design his or her own dreamweaver template instead of simply downloading one available online! This encouragement leads to the development of products and ideas.

However, not all policies help economic growth positively. China has some very strict bans on the usage of several popular websites including the ever so famous Facebook. Despite the fact that they have their own version of Facebook, the website ban prevents easy communication amongst the Chinese and the rest of the world. If you, for instance, post a job link from jobuzu on your facebook, your Chinese friends may not be able to access it.

China is also criticized for not implementing environmental friendly policies.  With its natural resources being depleted rapidly, the country faces disasters such as flooding and desertification. It is also a major carbon dioxide emitter that contributes to the overall global environmental degradation as a result of which it is criticized heavily. The levels of air pollution in china, particularly in the major cities, are alarming.

The policies that China implements apparently do not hinder the economic activity in the country. In general, these policies help the country manage its economic activity in a better way leading to the eventual result of high economic growth.