It is sometimes difficult to keep a track of the Chinese economy although it is a centre of attention for the media. China spent massive government to gain an outstanding growth.
Factors of economic growth:
The main factors that contribute to the growth of the economy are:
- Land
- Labour
- Capital
- entrepreneurship
Pros of the economy:
There are some advantages of the economy of China that have proven to be prosperous for the country:
- Reduction of poverty is an important factor. There is only 3.3% of the total population lives in poverty. People tend to consume more when they get richer. Companies make use of this factor and their products are tailored according to Chinese tastes.
- Aluminium and steel is being produced by China at a high rate. Continuous growth is the major factor for making it economically strong.
- Technology is the most progressive in China. The highest-selling cellular equipment is Huawei. It is the development of China that is taking lead.
Cons of the economy:
A number of reasons answer the question of why the media doesn’t highlight the better aspects of the Chinese economy:
- The total debt ratio spent by the government, corporations and consumers is 260%.
- An asset bubble is created because of the debt.
- Pollution is rising rapidly because of the ownership of cars.
- China’s creaking power infrastructure is demanded by the Chinese economy
- A great disparity has been created between the north and the south. North has taken steps back from agricultural growth. Migration has become a need so that farmers can make a living. China has been trying to deal with inequalities but in vain
- The property bubble has trapped China. Prices of houses have terribly increased. If this bubble bursts, negative equity will touch the skies.
- The banking sector of the bank is flooded with loans.
- There might be some growth in the Chinese economy but still, unemployment is making its way smoothly. It is because of the inefficient enterprises owned by the state.
- The rate of growth in the economy shows that it may cause pressures of inflation. It is because of the increased debts of the consumers and boom in the property.
- There has been a massive decline in the manufacturing sector. The productivity of the industry is being affected to a great extent.
- The account deficit of other countries with china is also a cause of the change in the economy
Conclusion:
The rate of growth is decreased if there is a growth in environmental growth. This includes deforestation that destroys rainforests and one loses the natural habitat. The change in the structure of the economy must be accepted by China. The emission of carbon is also the reason for enhanced Chinese growth. One must limit environmental pollution by creating global agreements.
The media doesn’t highlight the aspects of the Chinese economy because it may overlook the negativities which need more focus because the problems need to be resolved.
