China Unbalanced Essay

Decent Essays

China “Unbalanced”

Continual economic growth for the past 30 years has allowed China to rise as an economic power. As the Chinese manufacturing industry continued to grow many of the people moved from rural areas into urban centers. The continued economic growth has taken China from a poor country to the 2nd largest economy in the world. Using many of the principals of capitalism China has overcome obscurity and increased exports to the point of drawing a large trade surplus with Europe and the United States. The growing wealth of China has drawn much criticism form the global leaders as trade deficits rise. China has continued on policies of currency fixing and implementation of subsidies that are consistently controversial with the …show more content…

Pensions and Social Security were almost completely non-existent for many workers. The government has gradually increased pensions for urban and rural workers consistently since 2005. The majority of the people still do not have pension coverage. The move towards providing increased financial security for the people is expected to have a positive result on domestic consumption. Domestic consumption is the key to growth in China as the global economy has slowed.

Rising unemployment has been an increased concern for the Chinese government. Students are graduating from college and are unable to find employment. As unemployment continues to remain stubbornly high the government has taken to stimulus to assist in creating jobs. With local governments having submitted for projects in the past the stimulus was implemented quickly. Jobs were created and the infrastructure of China was improved. A continual effort has been made to improving the Chinese infrastructure in both the costal cities as well as the inland. Government infrastructure projects have become increasingly important in the fight against unemployment. New technology in construction equipment is commonly not used in favor of using manpower over machine power.

Social programs have proven to be expensive. Increased wages and the development of social programs all result in more expenses for businesses and government. China has sustained growth for

Get Access