Author: Timmy Carson

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.

From an economic perspective, China is considered a global superpower and is seen to be the most legitimate threat to unseat the United States as the biggest economy in the world. While the growth wasn’t immediate, China took its time to establish a strong local economy and capitalized heavily on its many competitive advantages before opting to enter the world stage as a key player in international trade. Today, China provides products spanning all types of markets from electronics to coconut oil for face and is very successful in doing so.

Take a tour of the Chinese economy’s path to growth by reading the highlights and bullet points below.

• The growth of the Chinese economy had its roots in the late 1970s when the leader Den Xiaoping initiated dramatic changes in the way the economy was run. The changes were highlighted by the introduction of some capitalistic concepts to the local economy generating very fast results at the grassroots level. Focus was given on the pursuit of personal income and new management systems were introduced to boost productivity. The reforms swept through various markets including agricultural, industrial, financial, fiscal and banking systems to kickstart the reforms.
• The second phase of growth occurred in the early 1990s when China began seeing major growth to its economy. During this time, China made bigger strides in international trade heavily marketing products from natural hair products to plastic toys. China regularly posted 9.5% growth in its economy although challenges remained in order to keep inflation low. At this time, more focus on banking and state policies became more urgent priorities.
• China truly began to realize the benefits of its reform programs in the early 2000s when proposed amendments to the constitution helped speed up growth. Growth regularly averaged at 10% orhigher and trade became a major engine of the country’s growth. In 2010, China raked in $2.97 trillion in trade revenue making it the second largest nation in terms of trade profits, second only to the US. Around this period, China became the third largest economy in the world, fueling job creation from accident lawyer professions to factory work.
• From 2010 onwards, China enjoyed modest progress even when the rest of the world was in recession. While growth has slowed down to the 5% level as other countries cut back on expenses thereby moderating global trade, China remained committed to exporting as evidenced by the presence of many global brands manufacturing their products from China. Just about anything can be sourced out from China nowadays, from the ubiquitous sample website to the glitzy iPhone 5. The Chinese economy has truly arrived.

China continues to hope for bigger things in its future but challenges remain before China can fully exploit its advantages. Social and political stability remain major concerns owing to the government’s drive to get more land for industrial growth which leads to people being forced out of their homes. China’s issues in the Pacific are also well documented as it quibbles with Japan, Vietnam and the Philippines over the control of islands in South China Sea.

Still, the future of the Chinese economy remains bright. It remains to be seen if China can ultimately unseat the United States as the biggest economy in the world. Until then, the world will continue to watch China closely and will keep asking: what will China do next?

It wasn’t that long ago when China wasn’t considered a world superpower in terms of economic and political might. Over the last 20 years, developments in the mainland led to a significant and impressive growth revolution so much so that economists now expect China to surpass the US economy within the next 15 years. So what fueled this immense drive to success?

It’s hard to identify one specific factor that could account for China’s sudden surge. It’s not as if one can claim that pikalaina fueled the growth in the Chinese economy, after all China isn’t one to rely on external factors to push it forward. Since the time of Mao,China has largely been driven by internal factors more than anything and the arching path that the Chinese economy took over the last decade certainly fit this assessment.

However, there are obvious drivers that we can view more as a having a direct influence more than anything else:

• First, China opted to practice a unique brand of capitalism driven by state policies. This is termed state capitalism in economic circles and it works well in the China environment. In a traditional capitalistic society, individuals and corporations drive the growth of companies and depend on market forces to determine the results. In state capitalism, the government has a hand in controlling the fate of that company never allowing it to keep exploring options without being backed by a government directive. This brand of capitalism is behind the growth of many successful companies in China and has empowered many to become successful beyond just acquiring the financial flexibility to buy Kratom.
• Second, Chinaentered into the World Trade Organization in early 2000 opening its borders to international trade. However, China’s competitive advantage allowed it to become a primary provider of services rather than a consumer of goods as in the case of most economies. Cheap labor and power in Chinaattracted big multinational companies to set up shop in China, taking advantage of low overhead costs to grow their businesses. As a result, Chinaballooned cerca casa while maintaining its economic policies free from foreign intervention.
• Third, China slowly but surely acquired the technological know-how to compete with the best brands abroad, and then used its competitive advantage to market cheaper products at a competitive quality level. Today, many companies source their parts and raw materials from China because it allows them to save on costs. Combined with a strong economic base, companies can now deal with China without needing a PPI claim to insure their business.

No doubt, many other factors contributed to the success of China but most can eventually be tied into the concepts discussed above. China championed the idea of cheap cost and competitive quality as a means of driving its stock in the world market. Today, most multinational companies do business in China because it is the only way for them to remain competitive. From services to parts and products, China now has a hand in most economic transactions earning it the distinction of being an economic superpower. And if the trend continues, there is little doubt that China may eventually surpass the US economy.

The currently observed growth in the Chinese economy, while relatively new in the eyes of some, is a trend that has begun since the launching of the Chinese economic reform agenda in the late 1970s. In its totality, the program is a complex and comprehensive strategy designed to overhaul the stagnating Chinese economy. The massive growth we see today is a byproduct of a long series of government actions impacting all facets of Chinese economy, from the introduction of foreign investments to the permission of the creation of small business such as dental marketing schemes and the likes.

To understand the full scale of the Chinese economic reform as well as the major reasons for its stirring success, it would help to see the situation in a broader perspective merging the potential internal explanations with the greater macro-economic scenario that has prevailed inAsiaand around in the world beginning in the mid-1990s.

Internally, scholars and economic analysts tend to think that the success of the Chinese economic reform is primarily due to the institutional reforms that were implemented as a kind of skin tightening measure. Classic examples include privatization of many government agencies coupled with a high degree of decentralization post-Mao. This allowed many leaders to implement their own ideas for spurring growth resulting in a boom of multiple economic improvement strategies that energized the country.

Others also argue that leaders were motivated to promote growth as this was seen as a primary success criterion for their leadership skills. Post-Mao, many leaders stepped up in a bid to improve their political stock and increase the likelihood of being recognized and rewarded for their efforts. Mao’s absence created a scenario akin to pressure washing were leaders who are capable suddenly had the opportunity to showcase themselves while the fleas on dogs type leaders remained stagnant for their lack of ability to showcase results.

Moreover, the dynamic change in the internal mechanics of the Chinese political and economic approach also coincided with significant changes in the global scene. Chinatook the concept of export-led growth to new levels following the model of Japanin the 1970s. China’s abundance of manpower was a definite competitive edge that allowed it to mass produce anything from Taylor guitars to computer spare parts. Coupled with the collapse of the former Soviet Bloc as a competing power in Asia,China suddenly had so much room to grow and not a lot of competitors to rival with it.

Today, we laud Chinafor supplying almost everything that we see in our homes. If there is a way for Chinato supply South Africa travel packages, you can bet the country would do such in a heartbeat. This is a real testament toChina’s ultimate goal of becoming the primary provider of anything and everything in the globalized world. Thus far, it is doing an excellent job at it and in the absence of a strong competitor, it is most likely destined to continue growing eventually fulfilling predictions that it will surpass theUS economy in a few years.

The growth of the Chinese economy is a good model for many developing countries that wish to establish their presence in the world stage. What started as a series of internal restructuring efforts paved the way for the China of today. In the same breadth, economic reforms can certainly be implemented in the correct way to yield the right results. The only question that remains is the motivation behind such actions. After all, if China did it, there is no conceivable reason that other countries cannot do it as well. In the end, only time will tell.