...of China's leaders that Economic reform was necessary. By 1978 " Chinese leaders were searching for a solution to serious economic problems produced by Hua Guofeng, the man who had succeeded Mao Zedong as CCP leader after Mao's death" (Shirk 35). As Susan L. Shirk describes the situation in The Political Logic of Economic Reform in China, restoring the CCP's prestige required improving economic performance and raising living standards. After the communist take over the country, Mao contained his emphasis on moral force by demanding that Chinese citizens demonstrate what he referred as "correct consciousness". It is noteworthy that shirk feels that the Chinese communist party leaders saw economic reform as a way to regain their and their party moral virtue even after Mao's death thus, paradoxically, by demonstrating their expertise in a moral political area of competence, the leaders of CCP felt they could demonstrate how they were serving the people. To a great extent, the issue of economic reform became politicized as the issue was used as a means by Deng Xiaoping to attain the leadership of the Chinese Communist Party. "Reform policies became Deng's platform against Hua for post-Mao leadership" (Shirk 36). Given this history of economic reform, it is evident that "under the present system economic questions are necessarily political questions" (Dorn 43). China was "still a state in which the central government retain[ed] the dominant power in economic resource allocation and...
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...Why did special economic zones succeed in China? Word Count: 2479 November 26, 2013 Why did special economic zones succeed in China? !2 Abstract The purpose of this paper is to find out the reasons behind the success of China’s special economic zones (SEZs). This paper examines different policies that China implemented in the SEZs and other advantages that SEZs possess while other regions in China do not in an attempt to find out factors made so successful. The reasons behind the success of SEZ in China can be divided into two different aspects: economic and political. This paper is mainly separated into two parts. The first part describes the political changes that China has made and how these changes benefit SEZs. The second part explains how different economic policies that are implemented and advantages SEZs have contribute to their success. Introduction Ever since its establishment, the Chinese government had been following the Stalinist economic model, a communism political-economic system created by the Soviet Union (Zhang, 1989), in which there was absolutely no consideration for the role of the market. This economic system undoubtedly benefited China in the very beginning. Yet, China’s economy had dropped significantly after a few decades, especially the time during the Great Leap Forward (Zhang, 1989). Not only did China suffer from domestic problems, such as outdated production technology, low industrial productivity, and declining...
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...What are geographic features? Geographic features have are things such as mountains, lakes, rivers, or natural events such as hurricanes and monsoons. Geographic features such as the Yellow River, and the Monsoon floods help fuel the economic expansion of China. China’s economy has been fueled by these geographic features so much that it is considered a major player in the world. In this paper I will discuss of America. the Yellow River floods, the monsoon rains, and the effect they have on both the Chinese economy and the economy of The United States First, physical features of a nation can have a tremendous effect on that country’s history and culture. One example is the Yellow River floods. The Yellow (Huang He) River is the most important single land form in China. Over one hundred million people live along its banks, trying to make a living off the extremely fertile soil it carries in its current. However, this amazing resource is also referred to as "China's Sorrow". It is referred to as “China’s Sorrow because yearly it floods, killing hundreds to thousands of people who could not flee. The main reason these people die is because there is no early warning system to indicate they should evacuate. Next, another example is monsoon rains. They come yearly, and are much more predictable than the Yellow River floods. You can usually tell two days previous to its arrival when it will come. The monsoons start with a slow start and stop rain. However, they will build...
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...globalisation has had strong impacts in China and thus is predicted to be one of the 4 largest economies by 2050(BRIC). China has benefited greatly from the onset of globalisation and their economy would not be the size it is today if it was not for globalisation, however globalisation has had some strong negative side effects on China. Effect of the 2008 GFC As a result of increased globalisation in China, it has been vulnerable to the Global Financial Crisis in 2008. In the period between 2006 and 2007 China was operating with high GDP growth rates, with an average of 12%. When the GFC hit in 2008, the impact was clear when: * GDP growth rate had dropped down to 9% in 2008 and 8.5% in 2009. The decrease in GDP growth rate was due to worldwide demand for the Chinese exports decreasing and TNC’s closing down factories and putting millions out of work, leading to a stall in domestic industrial production. * Inflationary rate was negatively affected. In 2007 China’s inflation rate was 4.7%, in 2008 it grew to 6%, and when the GFC hit, the impact was clear when inflation had dropped down to negative 0.6% in 2009. * China’s unemployment rate had increased from 4% in 2008 to 4.3% in 2009. * China’s government debt as a % of GDP rose from 16% in 2007 to 19.5% in 2008 In November 2008 the Chinese government introduced a stimulus package worth $586 billion, which was aimed at encouraging growth and domestic consumption. After 2009 China experienced gradual increases in...
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...2015 Economic Aftermath of World War II: China and Japan When it comes to the economic welfare of different countries around the world, it is dependent on events within the country or events that the country partake in. Such an example that led to changes within many countries who were part of the destructive events within it would be World War II. The end of World War II had left a trail of devastation in its path. There were many countries in turmoil and there were many countries that needed to recover and rebuild. Two countries that were influenced by the aftermath of the war greatly were China and Japan. Following the war each country had to rebuild and/or change their economic and...
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...China is called ‘The New Economic Giant’ for three reasons. Firstly, its economy has doubled in size every eight years. Secondly, China now has the largest sustained GDP growth in history. Thirdly, China controls 3% of the world’s oil reserves. A centrally planned economy is an economic system in which economic decisions are made by the state or government rather than by the interaction between consumers and businesses. In 1986, China introduced an ‘Open-Door Policy’ to overseas investment. It allowed China to transform into a more capitalist economy, allowing individuals to accumulate wealth by producing goods and services without State interference. This allowed China to rise as an economic superpower. Car ownership is expected to jump from 16 cars per 1000 people in 2002, to 267 cars per 1000 people by 2030. By 2020, China is expected to have 140 million private cards on the road, which is more than the USA. An increased number of cars and rapid urbanisation will lead to an increase in energy demand therefore, increasing China’s energy requirement. The problem with increased number of cars and rapid urbanisation is that China doesn’t have the required resources and therefore will rely upon importing oil to meet the requirements. China’s dependence in imported oil is expected to 60%, which raises issues about China’s long-term energy security. China is still largely an agricultural society and 60% of the population lives in rural communities, and 45% of the workforce is employed...
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...Early Economic Prosperity: Fine China For centuries, the common theme of global politics and economics has been focused on the relative prosperity of the West compared to the rest of the world. It’s a trend with roots as early as the 15th century and that has characterized the world we live in today. In the 9th through the 14th century, however, China was starting to become one of the more prominent powerhouses in the world and played a major role on the international level in both politics and economics. China’s impressive strength during this time period insists that certain policies must have been put into place at the governmental level in order to spearhead the country into prosperity. To just credit this success to a more centralized approach than the rest of the world would be an unjust oversimplification of China’s illustrious history. Instead, we must look at China’s emphasis on both technological advancements and centralized business practices as the sources of their ensuing dominance in the several centuries prior to the arrival of Europeans in the Americas. While some say that just a general policy of centralization helped to spur Chinese advancement during this time period, it is actually more accurate to hone in on their reformative business practices as the most probable cause. As Abu-Lughod (1989) stresses, China’s reforms occurred both on a national and a global scale. Within borderlines, one of China’s first steps was to adopt paper money (especially in North...
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...on China to Overtake US by 2027 | Jim O’Neil, managing director of Goldman Sachs Global Economic Research | By Kim Jae-kyoung Staff Reporter China is expected to overtake the United States in economic size by 2027 as the world's third-largest economy has benefited from the ongoing global economic crisis, according to a noted global economist. In the eyes of Jim O'Neil, managing director and head of Goldman Sachs Global Economic Research, the global crisis has only been a blessing for China, accelerating the global power shift from the West to the East. O'Neil, based in London, coined the acronym BRIC to refer to the fast growing developing economies of Brazil, Russia, India and China. "I think China has had a really good crisis in some ways. It has been good for them, as it forced them to stop being so dependent on exports. I think our 2050 'dream' scenario for BRIC has become more likely, rather than less, since the crisis. The trend growth in Brazil and India seems to be rising also," O'Neil told The Korea Times. According to a Goldman Sachs report, China will dominate the global economy in 2050 with a GDP of $70 trillion, followed by the U.S., India, Brazil and Russia. "I think the likelihood of China challenging the number one spot of the U.S. has actually risen, as now China's growth is going to be determined by domestic forces and the rise of consumption, so it is more sustainable," he said. "On our latest long-term estimates, we think that China might...
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...Australia and China have adopted different economic systems in order to cater for the society. The Chinese and Australian economies have many similarities and differences from Australia’s market based economy to China’s planned economy. Like all economies, they both face the problem of scarcity of resources, what to produce, how much to produce, who will produce. Both of these economies have adapted to changing the world in order to allow their economies to grow and develop. These similarities and differences include the economic growth and quality of life, the environment, employment and unemployment, distribution of income and the government role. Australia and China Australia have very little similarities in terms of economic growth and quality of life. Australia is a democracy and China is a one party rule socialist party. The quality of life also comes in the size and the population of the country. Australia’s area of 7,682, 300 sq km is 80% of China’s 9,595, 960 sq km, yet its population is 22 million which is only 1.7% of China’s 1.35 billion. For Australia’s GDP per capita is $43,000 ranking 10th in the world and China’s is only $7945 which is 98th in the world. Due to the extreme difference in the density of population and per capita income. Basically there isn't a lot of similarity except the large gap between rich and poor and for a few wealthy individuals who could afford the same luxuries. Employment and unemployment are one of the many similarities and differences...
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...The Barrier to China sustainable economic growth: Pollution Problem China, the world’s second largest single-country economy, has achieved economic growth over the past 30 years, however, growing the GDP at any cost has created many environmental problems. China’s facing severe pollution and environmental degradation for many reasons such as rapid industrialization, reliance on coal as an energy source and manufacturing industry. One of the environment problems for China is pollution. The current air pollution has become a threat to Chinese people health. 33 shocking photographs were posted on social media under the caption ‘Pollution in China is out of control’ catching world’s attention. This problem has thus become serious problem which call for rethinking of government policies. The Chinese Prime Minister, Li Keqiang, also responded to this problem declaring war against pollution and fighting it with the same determination China battled poverty. From my point of view, it’s the big challenge for China to improve the environment quality while achieving rapid economic growth therefore I think one of the greatest barriers to sustainable economic growth for China is the pollution problem. The impact of China's economic development on the environment has become increasingly serious, China has been facing a growing imbalance between economic achievements and the quality of the environment. At present with economic growing, China's energy consumption and environmental...
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...is not rising but falling constantly. Inflation cannot be stopped in a short time Inflation’s occurrence and development is always lag behind an overheated economy about several quarters. At present , China’s e conomic growth rate slow down slightly.But the inflation pressure will remain in the next period of time.International oil, food prices’ increasing leads to the rising of the cost of production in China .The government should reasonably use the three monetary policy to control this . Lacking of core technology and independent innovation industry policy should be strengthen roundly,it seems a historical problems in economy,Recent years, high and new technology products’ exp ort is increasing fast ! In 2014. 80% produc ts’ core technology are controlled by foreign business man. So some industries are not competitive ,but monopolized by some big corporations Obviously. External economy The foreign economic policy influences （ eg ： American ）...
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...also how economic reform started out in 1978. Then I will go on to cover the four major economic institutions that needed to be reformed in order for China to become a market economy. These four major economic institutions will then be discussed in detail. This paper will then go briefly into China joining the WTO and will conclude with China’s economic situation at present. Chinese economic policies and institution have undergone a number of extreme changes since the establishment of the Communist regime in 1949. After the Communist Party took national power in 1949, the disorder caused by the imperialist invasions and domestic wars were put to an end and China began to strive for development by following Russia’s example in pursuing Leninist and Marxist doctrine. By following this doctrine they would replace free market and private ownership with socialist planning and public ownership. In order for this to become a reality China had to pursue radical revolutionary domestic and foreign policies to overcome the resistance to the Chinese Communist movements. After closing its doors to western concepts of capitalism and free market economy it seemed like China was doing well but it was soon evident that the rigid planning and the command market economy was becoming inefficient. In contrast to the western economies China was indeed falling behind. Even China’s neighbors such as Taiwan, Singapore, Korea and Hong Kong were growing rapidly after adopting market economic systems....
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...Potential economic growth is the expansion of the productive capacity of an economy. An outwards shift in the PPF represents economic growth. Economic growth enables a society to produce more goods and services in any given period as a result of expansion in its resources. Actual economic growth is measured by the rate of growth of GDP. Actual economic growth may also reflect a movement towards the frontier; for example when an economy is recovering from a period of recession. The AD/AS model can show economic growth. For example, in the diagram below, an increase in the skills of the workforce will enable firms to produce more output at any given price so that the aggregate supply curve will shift outwards from AS1 to AS2. This entails an increase in full employment output (or capacity output). China is the world’s fastest growing major economy, with growth rates averaging 10% over the past 30 years. China is also the largest exporter and second largest importer of goods in the work. China is the largest manufacturing economy in the world. In the past two decades, China’s economy has been developed very rapidly. The growth of China’s income per capita is much faster than that of any other region in the world. Economic growth in China has had a number of economic and social benefits. The first benefit of economic growth is the improvement in standards of living. There is also the easing of poverty in developing countries, as absolute poverty can...
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...ResearchBeam has announced a new Report Package "Food Containers Markets in China: Industry Growth, Economic Trends, Demand, Capacity, Analysis Report" Report Overview China's demand for Food Containers has grown at a fast pace in the past decade. In the next decade, both production and demand will continue to grow. The Chinese economy maintains a high speed growth which has been stimulated by the consecutive increases of industrial output, import & export, consumer consumption and capital investment for over two decades. This new study examines China's economic trends, investment environment, industry development, supply and demand, industry capacity, industry structure, marketing channels and major industry participants. Historical data (2004, 2009 and 2014) and long-term forecasts through 2019 and 2024 are presented. Major producers in China are profiled. Browse Complete Report at: http://www.researchbeam.com/food-containers-in-china-market The primary and secondary research is done in China in order to access up-to-date government regulations, market information and industry data. Data were collected from the Chinese government publications, Chinese language newspapers and magazines, industry associations, local governments’ industry bureaus, industry publications, and our in-house databases. Interviews are conducted with Chinese industry experts, university professors, and producers in China. Economic models and quantitative methods are applied in this report to project...
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...Assignment 5 Valerie Lagana Strayer University Eco550 – Economics for Managers September 5, 2011 Question: Describe the changing economic variables in China that influenced McDonald’s expansion strategies. The main changing economic variables in China that influenced McDonald’s Expansion were the increase in GDP and the economic stimulus package. In 2007, the increase in GDP showed a level of strong jobs in China as well as increase income for the Chinese (Farnham, 2010). This allowed the Chinese to spend more money on eating out at restaurants which gave McDonald’s a great opportunity for expansion. In addition, the Chinese government had a stimulus package after the economy dropped in 2008. The stimulus package included building more highways which allowed the Chinese to be accessible to the drive through window opportunity that McDonalds was able to offer as part of their expansion. Question: What factors led to the Mexican currency crisis and peso devaluation in 1994? The factors that led to the Mexican currency crisis and peso devaluation were the Appreciation of the exchange rate, falling interest rates, and the foreign savings. The appreciation of the exchange rate resulted in a decrease in savings with an increase in investment due to the expansion of credit without any federal regulations (Farnham, 2010). The falling interest rates were a result of the appreciation of the exchange rate attracting private capital via privatization of banks and free trade...
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