China's Source of Power

China has recently fallen into an economic slump. Because it is so involved with other countries around the world, this economic slump that China is going through is also affecting the other countries as well. The environment has also been affected negatively by globalization. There are many polluting industries, wastes, ecologically destructive practices, and air and water pollution. The reason this is happening is because people see China as a vastly growing country, corporations and companies want to move there because of the great opportunities they see to grow.

Although China makes great economic achievements and improvements every year, the economic achievements is not that glorious when divided by the large denominator of population. B... ... middle of paper ... ... rate is 8.77‰( SFPCC) in China, it brings a population increase of 19,090,000(SFPCC statics), which equals a medium-sized country in Europe. As a result, overpopulation may not be that serious in some other countries, it does be the most serous social problem in China. In order to solve the overpopulation issue, the government should pay great attention to it. Some policies, such as “ One China policy”, have already been made in China.

The Suffering of China as a Result of Economic Growth China, as a crucial country in the world, is suffering from a variety of costs of economic growth while the economic growth is incredibly fast in recent years. A division between rich and poor, unemployment, and various external costs, unbalance of payments, unstable exchange rate consumption of non-renewable resources and the risk of inflation and banking collapse have been the common social problems in China. There is a huge gap between the rich and poor people in China. “The top 5 and 10% of earners in China accounted for 19.8% and 31.9% of the country’s revenue” (by Richard Spencer in “The Daily Telegraph” published in February 27th 2004). Some people enjoy high quality of living in rich metropolitans such as Shanghai.

Xi Jinping, the newest president of China has already begun to address major issues that negatively impact China such as poverty, pollution, and corruption (Phillips). India, unfortunately has been doing little to change those three things that plague the nation. Their economy, on the other hand is a different story. India’s economic growth India’s economy is on the path to success, but for now, it’s still a developing country with a low literacy rate and large wealth

China’s Gross National Product (GNP) grew 7.2% annually from 1978 to 1990, averaging 9.7% per capita from 1982 to 1988 and was among the best in the world . However, “past growth is a poor predictor of future performance” and the considerable volatility in China’s economic growth has prompted the question whether this growth is genuinely sustainable. China’s high savings rate, its advantages as a developing country, as well as its disciplined and literate labour force should prove its critics wrong. However, there are other underlying factors which determine the sustainability of growth such as the type of growth, the state of the environment and the transition of the economy from planned to market. China’s growth may not appear to be as sustainable when these factors are also taken into account.

Economic growth caused the housing bubble, which could bring down the economy. China’s growth also spurned the idea of protecting the environment that has caused pollution and environmental issues. The Chinese economy does not have a great economic future due to political corruption, the housing bubble, the pollution and environmental issues, and the loss of their comparative advantage. The economy of China has been growing for the past three decades but recently it has been stagnating and that could be sign that end of the growth is near. Last year’s growth of 7.7% is “slightly above the market expectation” of 7.6% but that would have been the lowest number since 1999 (Wang 2014).

China’s work force has underwent dramatic change over the last two decades. China’s work force has had much stress put on them from translational companies to make products with high efficiency for cheap. A part of globalization is trade and the global market. China has been a good example on how it can have a negative impact on a countries work force. China was a perfect place for translational companies to export there products from there.

Trade liberalisation and the reduction in bureaucracy has enabled overseas firms to enter the Chinese market to take advantage of cheap and vast labour, creating millions of jobs. However, the privatisation of state-owned enterprises in the face of international competition as well as economic restructuring has also simultaneously led to mass job losses, especially in rural areas, posing a challenge to the Chinese economy and the government. During the period 2009 to 2015, China’s urban unemployment rate averaged 4.8% which is lower than the world average of around 7%. However, the real unemployment situation is likely to be more serious as migrant workers and newly graduated students are not included in government statistics on unemployment. As well as this, China has had historically low levels of unemployment, thus, a trend of increasing unemployment levels indicates a worsening situation.

In the book, Why Nations Fail, Acemoglu and James (20) assert that China’s leaders are “extractive” characterized by corruption and parasitism. They proceed to predict a decline in Chinese economic growth. This is unlike the US “inclusive” policies and governing institutions that have helped strengthen nations across the world while promoting peace and international cooperation. The main concern is the one-party rule in China, which they as... ... middle of paper ... ... and ideologies. Its governing system is worrying and the trend that the nation is undertaking seems to be headed for disaster as opposed to safety (Kenny).

Most of these jobs are taken over by China citizens through outsourcing or companies re-locating to China. In addition, China has continually increased the percentage of debt the US owes it. The implications of this scenario are far reaching. Firstly, this scenario gives China a political leverage over the US. An increased amount of debt owed to China therefore works to counter the US influence in world politics in favor of China.