The Promising Future of China's Economy Essay

960 Words 4 Pages
The Promising Future of China's Economy

If China's economy grows as fast for the next 20 years as it has for the past 14, it will be the biggest economy on earth:

I feel that China's drastic improvements over the last 14 years are overwhelming, with their Real GNP growing at a rate of 9% a year, which means by, 1994, China's economy will match the performance of countries like Japan and Taiwan. China's standard of living has also increased, and the number of people who were considered absolutely poor decreased approximately 63%. I feel with the vast amount of people living in China, and the economic activity booming like it is, China's exports will continue to grow, as well as the standard of living. This will
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Market Splintering: l feel that China should allow labour to become freer, because this will allow workers to be better suited towards their jobs, and therefor they workers will be more effective. Infrastructure: l believe that China has to build a railway system, so it will not have the highest utilisation rates for freight traffic. l also believe that China should give incentives for students to enter higher education. Government Finance: l think that the government should stop making up for losses of state-owned firms, and stop paying subsidies to these firms and consumers, hence the budget gap would be more than closed.

Why privatisation may not be needed:

Privatisation in many cases may not be needed because the government supports many businesses and purchases their products. If the company's are open to the market, many jobs will be lost. If foreign ownership buys it up, many jobs will also be lost, as well as many profits and products. State owned firms are not ready for the market, because they are geared for the bureaucrats and not customers. They are more concerned with the welfare of the employees rather than efficiency. In the past, communism led to low productive workers, because the more profits they made, were taken from government. Now things have changed, the more the retained earnings, the more the employees receive in