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…