Critical Analysis Of China 's Economy Essay

Before the 19th Century it would have been difficult to imagine that one day, majority of Western Europe and North America would come to dominate the world in global economy. So why did income per capita decline in countries such as India and China relative to the advanced economies such as the US and Europe since 1800? Some argue that the overwhelmingly cause was the lack of relative efficiency of utilization of technology in these countries relative to the more successful economies such as Britain and the USA (Landes 19). The inventions of gunpowder and the compass contributed to the West initially being considered subpar compared to China. Up until the 19th century, China held a position as a great world power, but, for the last two hundred

Part of China’s failure to have an Industrial Revolution caused by its labor-intensive system along with its attitude toward globalization. Because of the labor-intensive industries, China lacked the experience of institutional innovation and was unfitted for intensive technology development (Cohen, pg. 1534). During that time, China and England were the two strongest contenders in the competition toward becoming a global power. For many centuries, China’s massive market and capacity for manufacturing were exceptional. The continuous population increase urged its rulers to put an emphasis on developing efficient agricultural techniques and domestic trades. China’s ability to prosper was a phenomenon of that period. Its labor-intensive agricultural

Globalization has, for better or worse, altered the economic arena for every country in the world. For many less developed countries, globalization has leveled the playing field so that their economies can compete with the larger, more developed ones such as the United States and other large western economies. For instance, technical engineers in India and China are now just as qualified as engineers in America, but at half the cost. The once large and prosperous service sector in the United States as well as telemarketing services have largely been sourced to India as a large exodus of American multinational corporations find cheaper workers who deliver comparable quality. This then seems to be the essence of globalization - businesses

The People’s Republic of China is a Communist state; although, it has a constitution. The constitution has five sections: the preamble, general principles, fundamental rights and duties of citizens, structure of the state, the national flag, and the emblems of the state.

It is this that has sparked China’s vulnerability to external shocks. In 2011, China’s exports amassed almost $2 trillion, however in Feb 2012, China recorded a $31.5 billion trade deficit as a result of the European sovereign debt crisis in which China’s main trading partners plunged into recession. China’s severe BOGS decrease is an attempt to control growth and a sustained level of 7.5%. Investment policies are also critical for China to achieve economic growth and development. Foreign Direct Investment (FDI) in China is being sought primarily in the redesign of State Owned Enterprises (SOE’s) and in the development of interior provinces. Between 75-80% of World Bank loans to China in 2008 were directed to the central and western regions, the most economically disadvantaged. This promotes increased wealth within China, leading to higher levels of development due to a more positive Human Development Index (HDI), which currently sits at 0.687, up from 0.677 in 2010. Thus, trade and investment are critical factors in ensuring that China’s growth remains sustained at 7.5% whilst still encouraging increases in development.

Since the reform and opening up, the economy of China grows significantly, as an emerging economy, China's economy has made tremendous contributions to the global economy, and Renminbi has become one of the most important currency in the world. According to the survey conducted by China National Bureau of Statistics found that from 1979 to 2012, China has attained an annual average growth rate of 9.8% for its national economy, while the annual average growth of the world economy is only 2.8 % during the same period. In past 30 years, China's GDP surpassed Japan’s, China became the world 's second largest economy, in addition, the huge total volume of trade makes China become the world 's largest trading nation. The contribution of China’s

Though the Chinese were not the first culture to have an industrial revolution, China did develop a large array of the technology that is was used at that time (Volti, 2014). Their many inventions had caused them to be named as the world’s leader of technology. Unfortunately, the Chinese ended up losing that title to the Europeans after two centuries of holding it. The Europeans were able to do this because they decided to adopt the technology of the Chinese, improve it, and use if for their own gain (Volti, 2014). The Chinese had refused to use any foreign inventions even when the Chinese joined forces with the Soviet Union to become a Communist country (Volti, 2014).

351). Henceforth, life expectancy in China exceeded most of its European counterparts, whilst being on par with southeast England (Pomeranz, 2000, p. 37). Improvements occurred slowly in industrialising western Europe, with limited increases elsewhere until 1870 (Pamuk and van Zanden, 2010, p. 228). As well as being comparable in living standards, north-west Europe and Asia both were similar in terms of trade, literatures and centralisation (Goldstone, 2002, p. 338). In fact, India and China can be seen as more technically advanced; India’s cotton was unrivalled by England (Chaudhuri, 1990; cited by Goldstone, 2002, p. 366), and China was productive agriculturally, had a well-developed bureaucracy, and was not bettered in terms its manufactures (Marks 1997; cited by Goldstone, 2002, p. 366).

China as an economy has change rapidly over the past few decades. It has gone from a war struck country prior 1978, in which the economy was greatly effect, to one of the largest

China is a growing country; its population is about 1.4 billion, and as of 2014, the Chinese economy is the world’s second largest (in terms of nominal GDP,) totaling approximately US$10.380 trillion, with a growth rate of 7.4%, and the GDP per capita is US$3,619.4. From last century to this century, China has had significant improvements in their economic development. China had been in three major crises during the last century: the 20th century. The Fall of Qing Dynasty, World War II, and Civil War in China, all of them struck China in a destructive way. From the end of the 20th century, China was in a fast-developing mode.

For many decades, China has always been technologically and economically ahead of Europe. The invention of gunpowder, printing, and the compass started in China and was later dispersed throughout Europe. These inventions changed China as much as they changed Europe. These inventions also caused a gap between China and Europe. By the late eighteenth century, industrial revolution first started its spread from Europe.The transformations within Europe began to further accelerate while China was falling behind. In Europe, economic transformation was accompanied by social transformation. The social and demographic changes that were taking place, created the pressure for political change as well. Europe was expanding both demographically and economically, which strengthening their power in the global order. Conversely, China constrained itself from the outside world and focus on internal progresses ranging from agriculture to social classes. Why were industries in China more labor-intensive than those in Europe? In addition to its diverse geography and the belief of being self-sufficient, China struggled to transition to experiment-cum-science-based invention as well as rejecting the opportunity to create bonds and capital markets with other nations.

The Industrial Revolution actually began in Britain during the 18th century which was said to be unplanned. However, China was believed to be on the edge of the Industrial Revolution as early as the 1200’s but by the time of the early modern era, China’s progress began to slow down more and more while Europe’s progress was picking up the pace. In the text it states that, “German philosopher Gottfried Wilhelm Leibniz encouraged Jesuit missionaries in China “not to worry so much about getting things European to the Chinese but rather about getting remarkable Chinese inventions to us” (Strayer, 2015, p. 743). So, even though China was leading in technological inventions, Europe was bringing the inventions from China all to the West where it spread dramatically giving Europe leverage. Strayer states that Britain’s Industrial Revolution was also due to fortunate geographic circumstances such as the availability of coal and iron which was relatively in easy reach (Strayer, 2015, p. 745). Britain was also one of the more commercialized countries because they welcomed people who were advanced in technology regardless of their religion or beliefs. Western Europe had the upperhand during the early modern era because they had many connections with people of different cultures which greatly contributed to the great changes. The

In the past, manufacturing has accounted for the bulk of economic growth in China, but this is slowing down so China needs another area of the economy to pick up the slack. This is occurring because labor costs are increasing. In the long term, China lifting the One-Child Policy will help the economy, but many of the kids entering the workforce that is due to this new policy will not enter the workforce until 2030 and 2040 (Clarke). Many Chinese officials are hoping that lifting the One-Child Policy will help keep up the trend of astonishing economic growth China has seen in the last couple of years to give them the second biggest economy in the world. Thus, as the Communist Party is all about their ranking in the Global Village, all they care about is how big the economy is and how much their GDP has

China is currently the 2nd largest economy in the world, trailing the us and set to overtake the us economy by 2024 according to the IMF. GDP of china has grown extensively over the past three decades and have contributed to large scale growth in exports and imports, technological advancements, health, and more. The acceleration of globalisation was due to two major advancements, the first was the economic reforms of 1978 when china ‘opened the country’ and the joining of the WTO in 2001. China is classified as a socialist economy currently being ruled by a communist government. China’s current growth rate for GDP is recorded as being 7.7% in 2013 and has continued to slowdown over recent years due to a global economic slowdown.

The goals of Deng Xiaoping’s economic reform were the ‘Four Modernizations’. This Four Modernization refers to the reform of agriculture, industry, national defense, and science technology. These reforms were to solve the problems of motivating workers and farmers to produce a larger surplus and to eliminate economic imbalances that were common in command economies.