China Facing the 21st Century

1767 Words8 Pages
China: Facing the 21st Century China has rebuilt itself from having an unstable economy, a collapsed government followed by a few turbulent years of corruption and political instability to having the world’s largest population, state-of-the-art technological advances, an incredibly growing economy and several influential leaders. The country has been credited for many inventions indispensable today such as paper, the compass, mechanical clocks, and gunpowder among others and always thought to be ahead of its time technologically. The Chinese government continues to place emphasis on innovation by allowing its people to do research on various subjects such as stem-cell research and gene therapy; these are widely controversial in other…show more content…
They would continue to stay employed whether they did a good job or not, because these jobs helped pay for the government’s revenue. Exhibit 10 further proves this point where the marginal retention rate steadily increased from 1982 thru 1989. In addition, this new system allowed for corruption to take place. When looking at Exhibit 10, we can see how new management was added but this only added corruption, not profits, to the enterprises, further adding to the SOE deficit. The directors looked for their personal acquaintances to negotiate business deals, involving even local officials and used the low-quality items for the state and the high-quality items for dirty business. With so much corruption taking place, it was evident why the Management Responsibility System didn’t take off. Growth in exports and Foreign Direct Investment (FDI) was extremely important to China’s economic success. During Mao’s last years in power, China was inaccessible to the outside world and this was costing the country growth-wise. Other countries such as Japan and Hong Kong were experiencing rapid growth from exports as shown in Exhibit 6, and China wanted to follow in their footsteps. The country has hard-working and educated people who could help make this a reality and Deng knew this was the next step in helping the country to be among the most advanced and most improved4. The United States has always been a wise contender and is always looking for ways to better its
Open Document