...Urban-rural Rising Income Inequality in China As a developing country, China is trying to develop its economy and solving the threat of poverty since the economic reform. As a well-known economist Arthur Lewis said that "development must be inegalitarian because it does not start in every part of the economy at the same time" in 1954 (Lewis, 1954). It is also true for China. The income inequality issue between poor and rich increased faster, which has a negative impact as China tries to become a more stable society. The gap between rich and poor is caused by complex factors. This paper is intended to discover and explain the issue of income inequality through urban-rural gap, and also give some suggestions according to today’s situation. Historical Analysis In pre-reform, China is very poor and has about 90% rural population (Knight et al., 2004). At that time, Gini coefficient measure income distribution is 0.280 (0 means perfect equality, and 1 means extreme inequality) (Naughton, 2007, p.217), which shows that Chinese people has almost equal income across the whole republic. Although it is good to show China is “one of the most equal countries in the world”(Naughton, 2007, p.217), the truth is that everyone is equally poor at the same time. In order to decline poverty and connect the new republic to the world, the Chinese leader Deng Xiaoping institute market reform and said “let some people get rich first”(The economist, 2001). Since then, China has maintained rapid growth...
Words: 1209 - Pages: 5
...Do rapidly rising wages and incomes in China represent an opportunity or threat for western businesses wanting to succeed in china? With a growth rate of 7.7% China is a rapidly growing country that has not only the second largest economy in the world, after the united states of America, but a vastly developing country that has a major influence on the rest of the world, especially more developed countries such as the US and the UK. It has a population of 1.4 billion people, soon to be 1 billion in urbanised areas that provide an abundance of consumers for new markets and therefore making it a major player in multinational cooperation’s targets for growth and profit. In the past Chinas geography and low cost factor have meant that many Western businesses have not only expanded into China and its markets but set up manufacturing bases in many of the coastal provinces and near big cities such as Shanghai. In 2009, 153 of the largest 200 exporters in China were firms with a foreign stake. The advantages of low cost manufacturing that is vital to many western businesses to succeed however may be coming to an end. Wage levels in China have increased continually over the last two decades as the economy developed and also from a variety of factors including to an aging population, social pressure and consequently the pressure on multinational corporations who operate within china. These wage increases and therefore rising incomes both offer the opportunity and threat for western businesses...
Words: 1406 - Pages: 6
...thought that the entry of China into the world of economy would change the rules, with an effective and infinite reserve army of labor, China would be able to grow and grow without ever running out of workers and so having to upgrade and pay higher wages. This thought is gradually changing as China is facing shortage of laborers making the number of Chinese working-age adults scarce. This will have an economic impact since labor shortage would mean rising wages and then rising prices of goods manufactured in China. Company owners must take into high consideration how they can retain their laborers, which is a vital input in their production function. International Application: Is China Running Out of Workers? The most populous nation on earth will soon have a labor shortage. “It is a serious situation if you are a manufacturer because now, you have got to compete on wages” (Anderson, 2004, para. 2). The available number of rural workers seeking factory work is decreasing and younger and more educated Chinese workers are now pursuing white-collar jobs. The number of young people entering the workforce is smaller than the number of retiring employees. The working age population has plateaued in size and will begin getting smaller sometime in the next five years, according to demographers and recently released census data. What will be the implication of the labor shortage? As workers grow scarce, wages are going up; sharply rising wages, gradually rising manufacturing goods of...
Words: 645 - Pages: 3
...as genocidal. The origins of the genocidal views pertain to the rising internal tensions that have caused a civil dispute between the north and the south. Meanwhile, the Islamist National Front (NIF), a powerful political party lead by Omar Hassan al-Bashir, took advantage of the Sudanese political instability to rise into power and reform governmental policies in Sudan. Since the ruling of al-Bashir many Sudanese people have become frustrated with rising levels of poverty, humanitarian reform, lack of representation within the government, and support for the pro government militia known as the Janaweed. Rising oppositions of the al-Bashir totalitarian regime became victims of a brutal genocidal act enforced by the president of Sudan. Consequently, the issue has captured the attention of the UN and pro-western democracy countries around the world. Over the course of history there has been a sudden increase in international influence and responsibilities on the major countries that represent a unified regime. Western influence has spread to become the main source of influence in the world; however rising economic influence has allowed China, an anti -western humanitarian policy advocate, to become an influential country. China's paradoxical humanitarian intervention policy has allowed China’s intervention policy in Darfur to evolve to become more flexible despite ingrained national sovereignty values. Therefore China has taken a greater responsibility as a...
Words: 1173 - Pages: 5
...During the years of 1850-1920 China did have some factors of being revolutionary, the decline in imperial China, their rise of their military as well as the change in the political parties, China also had factors of being a continuation such as their economy and the leaderships. However there wasn’t many factors of China showing to be a continuation this was because China was changing massively and at a fast rate during this period of time. One way to show that China was a revolutionary was the Boxer Rising. This was a popular anti-western movement in China, which was supported by peasants (such as farmers) uprising in 1900 which was set up to drive all foreigners out of China. It was a violent anti-foreigner and anti-Christian movement; it was motivated by proto-nationalists and backed by the empress dowager CIXI. In 1900 the Boxers besieged the foreign embassies in Beijing for two months until they were relieved by an international force. The rising was intervened by the Great Powers, which defeated the Chinese forces; because of this it further reduced the authority of the QING dynasty. The Boxer Risings changed China quite a lot: It made the leaders of China realise that they had to modernize and adopt European technology as well as this it also helped to opened the doors for Revolutionary movements such as the Communist Party and the to rise and to gain the support of China's people. Another factor that shows how revolutionary China was, was the End of the Chinese Empire...
Words: 714 - Pages: 3
...Child Labor in China: Attributing Factors and Possible Solutions 1. Introduction The child labor problem has long been a human right issue which is worth concerning. According to the International Labor Office (2013), the estimated number of child labor in the globe in 2012 is about 244 million, of which 78 million of them are working in hazardous conditions. As one of the world’s most populous country and the largest exporting economy, China manifests the problem of child labor. This report will first discuss the main factors for which the child labor problem in China are attributed to. It is then followed by suggested actions that policymakers and private enterprises should take to help cope with this worrying problem. 2. Factors Contributing to Child Labor Problem in China 2.1 Lack of Education To many rural families, the costs of attending school such as tuition fees are unaffordable, and the accessibility to schools in rural China is so low that they have to make long journey to the nearest school (Morley, 2009). In addition, the quality of schooling is not guaranteed in many schools such that parents are deterred from sending their children to schools (Jensen, Nielsen, 1997). With the Chinese traditional belief that sons are more superior to daughters, they would prefer sending their sons to school only even when the families have the ability to send some of their children to school (Morley, 2009). Lacking education in China leads to a spate of children having no...
Words: 946 - Pages: 4
...college graduate would have had a difficult time finding a job that pays as well as a typical BPO firm. (Kuruvilla & Ranganathan, 2007) Another example of globalization I would like to highlight is the growth of the western fast food business/restaurants into China. Before the event (growth of fast-food business/restaurants) the Chinese population was healthier and had limited options for eating out which included your typical Chinese restaurant, wontons sold on the side of the street and local food merchants. After the event (growth of fast food restaurants) the Chinese society/culture has had many changes, including obesity, change in types of food choices which in turn affected the Chinese overall health and economy (Cheng, T, 2003) Part B The growth of the fast food business/restaurants into China is a great example of globalization on a native non-Western culture. Fast food restaurants found that global business expansion would be a way to grow business and increase profits. Fast food was only introduced into China in 1987, with opening of the first KFC. They become successful overseas by adapting to the local culture. McDonald’s opened their first franchise in 1990; there are now over 800 McDonalds in China and an additional two hundred in Hong Kong....
Words: 684 - Pages: 3
...outweigh the costs, conversely when house prices do not control, its influence will do more harm than good. Introduction Real estate prices question has been one of the important bothers Chinese governments, in my personal view, China's real estate prices continued to raise a few reasons. Was the total population growth, income level, continue to improve, housing costs rising prices, housing loan stimulation, rising expectations, etc. These reasons have been plagued by domestic real estate researchers, real estate prices also leads to national many influence. Its positive influence is can promote economic growth and increase GDP; Negative influence is can lead to inflation, expand the gap between rich and poor. 3.0 Research Methodology Choosing the topic and search the information on the Internet Neatening up the information I search from the Internet Collecting the data Making conclusions Analyzing the reasons by myself Coming up with the solutions of the problems Writing the report 4.0 Main body As is known to all, recent 10 years house prices have plagued the government of China and national. The continued rise in house prices to common people bring heavy life burden, "humble abode" phenomenon has become a very common thing. Since 2005, real estate problem has become a hot topic, when two meetings convened life during, the...
Words: 1895 - Pages: 8
...industrialization begins to take hold in countries previously not seen as traditional powerhouses. Worldwide, prices have risen at a rate never before seen. With a burgeoning population of middle class workers, Asia as a whole, and China and India specifically, have fueled this pricing explosion. Research shows that the development of these former 3rd world countries is responsible for a large increase in global pricing due to the high demand for steel, oil, and agricultural products. One major industry which has been affected by this shift is the steel industry. The demand for steel along with the decreased supply has caused prices to increase by 25 to 45 percent in the US market. (Van Der Schans, 2007). Several factors have coincided to deal a damaging blow to the US steel market. Firstly, China and India have become major players in the steel industry, accounting for the consumption of over 25 percent of the worldwide steel supply. Cooney found that, “China has become both the world’s largest steelmaker and steel consumer.” (2006). China’s ability to dictate the market has led to a global shortage of structural steel, and as most people are aware, when the supply dwindles and the demand increases, higher prices are inevitable. The increased demand in China and India has caused these countries to redirect their exports in order to meet their own domestic demands. Some Chinese and Indian suppliers have halted exports completely;...
Words: 2513 - Pages: 11
...http://economyincrisis.org/content/rising-employment-grows-trade-deficit-due-to-free-trade-policies Trade Deficit Grows Due to Free Trade Policies April 10, 2012 Karl Rusnak 1 Comment Unemployment is rampant in the United States today, and Americans are rightfully asking for policies that will bring the problem under control. Unfortunately under our current free trade policies there is a direct correlation between unemployment and the trade deficit. As unemployment decreases we see a rise in the trade deficit because we have become so dependent on imports for our needs. This means that, until we fix our trade policies, any gains in unemployment will be tempered by a ballooning trade deficit. An economy with a massive trade deficit is unsustainable, and we must change our trade policies if we want to see our nation prosper. The official unemployment figure is currently 8.2 percent. Many economists estimate the rate at which the economy is considered to be at full employment to be about 4 percent, because even under the best conditions there will be individuals seeking jobs. Certainly full employment is desirable, but under our current policies it would do little to create any long-term prosperity for the United States. Our trade deficit was over $500 billion last year, but at full employment it is estimated that we would have a trade deficit of $750 billion or more. As more Americans get jobs, they have more purchasing power. Unfortunately many of the items Americans...
Words: 2334 - Pages: 10
...Royal Melbourne Institute of Technology Product Innovation Case Study: WM WRIGLEY-- INNOVATION IN CHINA’S CONFECTIONERY MARKET Name and Student ID: Chi-Hao Tu S3296463 Liang Yen-Hsiang S3306170 Sophal PEN S3394842 The role of product innovation for Wrigley in China Wrigley, the world’s largest confectionary company, operates in around 40 countries, and also distributes in more than 180 countries. In Asia market, it produces wide range of confectionery products such as chewing gum, hard and chewing candy, and lollipops. If we look at market segmentation in China, there are around 28%, 24.4%, and 61.1% of high- class, middle- class, and low- class respectively. Wrigley’s penetrates Chinese local market by segmenting its market carefully. As the picture shown below, Wrigley runs 39% of whole gum market share in 2006. Due to rising Chinese middle class in recent years, Wrigley planned to launch a new set of confectionary products, both gum and non-gum products, to meet emerging new market. Having seen this development, Product innovation plays a critical role to maintain its leading market position in the industry. Resources: Chicago business.com, (http://www.chicagobusiness.com/article/20080331/NEWS07/200028762/wrigleys-newest-taste-wolfberry) To sustain consumer’s choice of its products, Wrigley continues to innovate new products not only to maintain its already-segmented market but also to attract new emerging Chinese market...
Words: 2479 - Pages: 10
...China Threat Theory Rising China: a security threat to the West? Abstract The rising China into the world stage has paved the way to the China threat theory. The China threat theory claims that China will soon disrupt the status quo in the world that has been dictated for decades by the Western nations like United States, United Kingdom and France. Especially the United States will not easily give up or relinquish their position as hegemon. The perceived threat of a rising China; especially when there are several publications of books, articles and anti-China bashing blogs that helps to exacerbate these fears. China’s increase in soft power and hard power does not mean it is a threat to the global security; China’s development and their economic growth relies on peaceful relations with the West because China needs access to their domestic markets. The main reason why China is considered to be a threat to the West is because they cannot maintain their domination on the world stage, and has to make room for developing nations like the BRICS countries (Brazil, Russia, India, China and South Africa). Yet China simply wants to develop and increase the living standards of its people, and no desire of aggressive military actions. Thus, the foundation of why China is still been seen as a threat will be explored but the conception will be dismissed because as a growing superpower these steps are logical and any country that is in the same situation as China now will simply...
Words: 1324 - Pages: 6
...Why Starbucks succeeds in China and others haven't By Shaun Rein, CNBC.com Contributor Updated 2/10/2012 3:03 PM • Comments • • • • [pic] • [pic] • [pic] About 14 years ago, I met an entrepreneur who wanted to open up coffee shops around China. I never thought the coffee business would work there. The Chinese would not easily give up their tea-drinking culture for a bitter, overpriced drink, I told him. • [pic] By Greg Baker, AP A worker cleans the sign outside one of the many Starbucks outlets in Beijing. Enlarge By Greg Baker, AP A worker cleans the sign outside one of the many Starbucks outlets in Beijing. Sponsored Links Starbucks has proven me wrong. Howard Schultz, the CEO of Starbucks (SBUX), announced that China will soon become its largest market outside the United States. It has opened over 500 outlets in the country, which are more profitable per outlet than in the U.S. even though sales per outlet lags its U.S. counterparts considerably, according to the chain's chief financial officer, Troy Alstead. What did Starbucks do to succeed in a market where so many other Western food and beverage brands such asDunkin Donuts, Krispy Kreme, and Burger King have failed to live up to their own expectations? What Starbucks did right in China is a textbook case study in how food brands can succeed despite rising labor and real estate costs and increased competition on the Mainland. • PHOTOS: 10 fake businesses...
Words: 909 - Pages: 4
...Macroeconomics Short Essay 1 Chili Prices hot on short supply and rising demand PK KRISHNAKUMAR & JAYASHREE BHOSALE, ET Bureau Jul 16, 2015, 04.00AM IST Tags: * (Meanwhile, keeping with…) KOCHI/PUNE: Chili prices are getting hotter due to supply squeeze and rising demand. The prices of the largest exported spice from India are hovering around Rs 95-Rs 100 a kg, 20 per cent more than the prices a year ago, and may race to a new high depending on the demand, trade insiders say Chili crop was down by 15 per cent-20 per cent due to erratic rains last year. This along with high export demand in the end of 2014-15 seems to have dried up the stock, particularly in Andhra Pradesh — the largest chili producing region. "At present the cold storages in Guntur are showing 30 per cent-40 per cent deficiency," said Ravipati Peraiah, MD at Vijayakrishna Spice Farm, a dry chili manufacturer and supplier based in Bellary. The annual chili production in the country is about 13-14 lakh tonne. Rising prices have led to hoarding, which in turn affects supply and boost prices further. "About 75 per cent of the available stock is with the traders and only the rest is with the farmers," said Venkat Rosaiah, president of Guntur Chilli Commission Agents Association. "Heavy purchase by China and Bangladesh last year has created pressure on the stock and has lifted the price. But if Andhra gets good rainfall in the coming weeks, the prices will cool." The prices are expected to go above...
Words: 839 - Pages: 4
...China and New World Order Based on what you have learnt in this course, what kind of world order do you think we have now and to what extent a new world order is shaped by the rise of China? In what aspects is the rising China changing the existing world order? World order has a variety of definitions. In general, it refers the pattern of relations between states, behaved according to a set of institutional rules and principles. It changes over time when great powers rise and fall. Suggested by George Modelski, the Long Cycle Theory believes a war will emerge after the rising power threatens the original hegemony and might replace the existing world order. The challenge posed by the rise of China to the western dominance is felt worldwide as her second largest economic status. A question has been asked by an American scholar John Ikenberry – “Will China overthrow the existing order or become part of it?” This essay aims at introducing the current world order and investigating how it has been changed with the inclusion of China. One of the two major types of world order is the Westphalia order which is based on the modern state system. It is the concept of authority on the territory that the sovereignty of states and the fundamental right of politics is self-determined without any intervention from other states in internal affairs. This system highly respects the territorial integrity of states and the legal equality between states that is no matter the size of a country...
Words: 1169 - Pages: 5