China’s Rapidly Growing Economy and Its Pending Implosion
China’s rapidly growing economy and its pending implosion
Granted the most recent and extreme circumstances of the United States Financial System, there has only been one International player that has received a comparable level of news coverage. Out of what investors refer to as the BRIC countries: Brazil, Russia, India and China; China and its rapidly growing economy has gained full attention by investors, and most importantly US and international federal policy makers. In the following paragraphs I will critique and discuss China’s economic progress and how it has the potential to send a ripple effect throughout the world should it drastically slow down or collapse completely. Taking a broad view at China’s booming economy, things have been going really well for this communist state. Even dating back to 1978, the “evolutionary, experimental, and incremental nature of China 's reforms” (Sachs 1) have become proven successes that have lead to its stellar economic performance in the past 30 years. More specifically in agriculture their land is not owned by the farmers, the rural communities that own township and village enterprises and state owned enterprises have resulted in a natural competition rather than a push towards privatization. China’s development post 1978 has been partly due to Deng Xiapoing in which he took over control from Mao Zedong who established an autocratic socialist system that imposed strict guidelines over everyday life and the expense of over ten million people’s lives. During the last quarter century China’s economy has changed from a centrally planned system to a market-oriented one with a rapidly growing private sector. Speaking of reforms, China has sold minority shares in four of their largest state banks to foreign investors and made refinements in foreign exchange and bond markets in 2005. These reforms coupled with large foreign investment have helped China develop into the world’s third largest country rivaling
Granted the most recent and extreme circumstances of the United States Financial System, there has only been one International player that has received a comparable level of news coverage. Out of what investors refer to as the BRIC countries: Brazil, Russia, India and China; China and its rapidly growing economy has gained full attention by investors, and most importantly US and international federal policy makers. In the following paragraphs I will critique and discuss China’s economic progress and how it has the potential to send a ripple effect throughout the world should it drastically slow down or collapse completely. Taking a broad view at China’s booming economy, things have been going really well for this communist state. Even dating back to 1978, the “evolutionary, experimental, and incremental nature of China 's reforms” (Sachs 1) have become proven successes that have lead to its stellar economic performance in the past 30 years. More specifically in agriculture their land is not owned by the farmers, the rural communities that own township and village enterprises and state owned enterprises have resulted in a natural competition rather than a push towards privatization. China’s development post 1978 has been partly due to Deng Xiapoing in which he took over control from Mao Zedong who established an autocratic socialist system that imposed strict guidelines over everyday life and the expense of over ten million people’s lives. During the last quarter century China’s economy has changed from a centrally planned system to a market-oriented one with a rapidly growing private sector. Speaking of reforms, China has sold minority shares in four of their largest state banks to foreign investors and made refinements in foreign exchange and bond markets in 2005. These reforms coupled with large foreign investment have helped China develop into the world’s third largest country rivaling
Cited: Sachs, Jeffrey D., Woo, Wing Thye. "Understanding China’s Economic Performance." NBER Working Paper No. 5935, National Bureau of Economic Research, 1997. <http://www.nber.org/papers/w5935>. “Can China’s Economy Withstand a U.S Central Intelligence Agency: World Fact Book: China. 15 Apr. 2008 <https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html>.