Ever since the death of Mao Zedong, founder of China’s communist party, his successor, Deng Xiaoping, opened China’s gates for foreign investments and companies that made the country an economic world power it is today.
The communist ideals that Mao started have forbidden businesses in the country but Deng have turned China from a communist agrarian system of economy into a capitalist based economy.
Today, China is the principal exporter of manufactured goods in the world. Different companies from the United States and Europe subcontract their labour force in China particularly due to the low labour costs.
Eversince the late 90’s, the transformation of China has become a testament to its elaborate form of economy. This year’s forecast in China’s economy looks forward to a 7-9 percent growth in GDP.
The Chinese are also renowned for their business competence. A good number of Chinese from numerous countries around the world has a lot of them make their living by way of selling all kinds of consumer goods and most of their businesses are stories of success.
Despite the optimistic views on China’s economic growth, a lot of finance experts still see lots of obstacles that could stagnate the country’s growth or even break it.
One of these factors is economic imbalance. One of which is the one-sided development concerning the urban and rural areas. As the urban population in China experiences an improvement in their lives, a lot of China’s rural population still come across hardships particularly within the housing and agricultural sectors.
This situation might somewhat resemble Mao’s “Great Leap Forward” where the chairman converted farmers into industrial workers that resulted to China’s starvation. Today’s China, however, have a more balanced food production than ever before but more improvements are necessary before it can achieve perfect balance.
Another hindrance is China’s tense political and societal atmosphere. So far, every dissent in the country has been suppressed with no mercy in its mainland and other places they allege to be theirs such as Tibet.
China is also primed to keep Tibet under an iron grip and their way of doing this is by migration of the Chinese population to Tibet, constructions, and banning freedom of expression.
Other areas in China like the region of Xinjiang, where there is a large population of Muslim Uighurs, is also experiencing both economic and political instability because of unrest.
Climate change is an critical factor that poses the most serious peril not just to China but the whole world. China has now exceedingly overtook the US in carbon emissions and pollution. The consequences brought about by this could not only upset China, but also to countries near or far away. The irreparable effects of climate change will cause rising sea levels will surely cause problems in China’s south, and could even melt glaciers from China’s western part and the Tibetan region which will flood towns and cities and also cause a water shortage since these glaciers are an important water source for several streams and lakes.
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