Chinas Growing Economy Essays - Economy Of China, China, Republics

China's Growing Economy Essays - Economy Of China, China, Republics China's Growing Economy After North America, Europe, and Japan, the area of China, Taiwan, and Hong Kong is a fourth growth pole in the world economy (Jue 108) which in 1994 was expected to double in size by 2002. Today, the growth rate is still on track to fulfill that prediction. Recent Chinese economic policies have shot the country into the world economy at full speed. As testimony of this, Chinas gross domestic product has risen to seventh in the world, and its economy is growing at over nine percent per year (econ-gen 1). Starting in 1979, the Chinese have implemented numerous economic and political tactics to open the Chinese marketplace to the rest of the world. Chinese reform measures even anticipated the rush of foreign investment by opening newly expanded industries to out-of-country investors. As trade expands globally and countries within geographical proximity and of similar cultural descent and philosophies ally themselves in order to better compete on a world level, we are seeing the develop ment of increasing number of geographical trade alliances, whatever the underlying reasons behind each. The alliances that have been in place for a while are proving to be very successful in competing in the international markets, stimulating the economies of nearly all of their member states. Effects of this change in economic strategy by a world power can be felt by practically every nation of the globe involved in international trade. The change in the amount of imports and exports to and from China will increase the demand on countless markets. Also, with all the foreign investment China is receiving, the socialistic republic will only grow more and more interdependent upon the world economy. However, the impressive growth rate of Chinas economy is not without its shortcomings. Problems such as inflation and inefficient state-owned enterprises plague the rise of the Chinese economy. When China opened its economic borders 19 years ago, environmentalists spoke of the efficiency of their farming systems and how they used hardly any organic fuels in the production of food for their people relative to some of the other countries of the world-most notably the United States. What they neglected to mention, however, that one farmer at the end of one rake struggling to feed his family kept fuel consumption very low indeed. It was not, by any stretch, efficient. Matching conditions still exist today. Rumors of the wonderful prosperity of the south and eastern provinces have reached the more isolated-and less prosperous-interior provinces. Those current farmers who would travel in order to be more prosperous themselves are often stopped at the borders of industrial growth and made to turn back. Everyone in China seemingly wants a share, but the industrial provinces can physically support no more drain on their existing housing and infrastructures, and they are finding themselves unable to enhance their current positions despite their economic prosperity. When examining an issue, it is imperative to honestly look at all sides, and not all of Chinas sides are forthcoming. The country has indeed become more open toward foreign investment, and in fact openly courts it. China have been known to have placed several restrictions on the multinational companies that have opened operations within their borders, but they are generally not so restrictive as to be prohibitive. For example, after IBM accepted Chinas conditions regarding the true ownership of IBMs facilities and environmental rulings, it seemed that all of the rest of the world wanted to join in. Deng Xiaoping called Chinas entrance to and courting of the industrialized world crossing the river by feeling for the stones (The Economist 26). In feeling for the stones, Chinas already realized economic transformations have vastly improved the lives of hundreds of millions of people (The Economist 26)- Chinese people. Economic measures instituted by Deng Xiaoping have been grouped together, under the general term of gradualism, but many observers now say that in order for China to continue its double-sized growth over the long term and to rectify the problem of the state industries that are losing billions of dollars, economic shock therapy needs to be administered, and quickly. But the current plan of Chinas President Jiang Zemin and his advisors includes no such shock therapy. It does