China Economic Growth and Your Thoughts on China's Future
A lot of writers have written a lot about the economy of China in the past and so many writer are still doing the same yours truly, I’m not exempted but the truth is a country with such a large economic growth should be a talk of the world. If the People’s Republic of China can hold a military strength that matches their economic strength, then we might have a new world power. I am not discussing China’s military power here.
China has risen from a poor developing country to a developed economic power, some people refer to China as the second economic power after the United States while some people argue this but china has proven to be a power to reckon with. They have become U.S biggest partner with a total trade of about $5 Billion in 1980 to about $659.8 billion in 2018. Although, the economic growth of china has raised several eyeballs with some U.S policy makers saying china is using unfair trade practices, this has not been proven right.
Source: pxfuel.com
China 1950 – 1979 (Before the Reform)
In the early 1950s, all china household farms were made a large commune by a central government, all large scale investment were taken control by the central government. In other to grow industrialization in china, the government invested in human capital and at such barred every form of unnecessary import except from goods that could not be made in china (Maybe you have wondered why you buy a lot of made in china goods, it is because they invested physical and human capital while producing local good majorly). Although, this distorted the economy.
Under the leadership of Chairman Mao Zedong, he still continued to maintain the central planned economy. In 1978, most Chinese producing industries were owned by the central government (That’s why most publicly traded company have china in their names like China merchants bank. Do not be surprised, it is a private owned bank currently.) The Chinese government says that during the year 1953 to 1978, China economy GDP grew by 6.7% although a lot of people argue this saying china exaggerated production level for political reasons.
China Economy Reform and Growth till Date
After a long while of centralizing power in all sectors, the Chinese government allowed their farmers to start selling few of their product in a free market at the price given to them by the government after which the government created economic zones along the coast so as to attract investors from foreign nations so as to boost export and import only high technological things not produced in china. Also, the government decided to decentralize some sectors which included trade. Various enterprises were allowed to be controlled by provincial and local governments rather than the central government and the state planning. The government also allowed citizens to create their own businesses. Soon, state controlled prices on goods were eliminated which started to create room for trade liberation which was the major breakthrough for china. Trade barrier removal enabled competition and encouraged foreign direct investment.
Since the implementation of the Economic reform, China has experienced an increase in GDP up to 9.5% from 1979 – 2018. In 2010, there were said to be 445,244 foreign direct investment employing about 55.3 million workers which is about 16% of china urban workforce.
What do you think about China growth? Do you do business that is related to China directly or indirectly? What do you speculate of china economy in 2024?
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The situation in China with the idea of being "One Country, Two Systems" is quite interesting and peculiar, on the one hand, the collectivization of property, the destruction of individual and private initiative and centralized control by the State in its subject autocratic and pyramidal, because all that led to situations of famine, production of low quality goods or at least of very doubtful quality, strong internal repression against ethnic tricks and other things that do not seem a source of pride. Then, with the changes achieved after Mao, things began to change, even today the problem of having an autocratic and very centralized state is something present, but the creation of special economic zones is already a step forward in terms of economic issues In addition, I have read that your quality standard is seriously improving.
I still have to consider that they are the country with the greatest indication of favoring manufacturers of international counterfeiting, they also have several indications of disrespect for international patents and an employment situation that does not conform to the international standards of workers' rights (although ironically part of their political slogans are in favor of workers and peasant farmers)
I have no business in China, but I understand that with the imbricated world economy, everything that happens there affects the rest of the world, after all, it is an economic power and its weight is not something that can be left out in an analysis of these themes.
You are right. China has proven to be a world power although i do not believe they produce anything original. I have seen a lot of products that are below standard but are still produced. In underdeveloped countries, china products are what most people can afford even though they are counterfeits. I guess that is also helping their economy to grow. Also, china giving loans to African countries and other countries is something i am sceptical about.
Certainly, that in my comment I did not touch the point of the loans, China has made several investments and loans in different developing countries and has strengthened its international influence, for this reason, everything that affects its economy will have a direct effect on that of all its partners.
Great comment @pedrobrito2004
I think we shouldn't believe what the statistics of communist countries and other dictatorships are claiming.
And that is supposed to be the long-term history:
https://www.visualcapitalist.com/2000-years-economic-history-one-chart/
I like the Visual Capitalist website. (But who knows if Chinese data are reliable.)
So are you saying you do not believe China's economy is doing well and most of their data are being exaggerated?
I'm sure they are manipulating data, but we don't know in which extent. Some analysts are trying to make alternative calculations (for GDP growth, for example), based on energy and raw materials' consumption.
Hi @futurekr, @deathcross
For past few years China has been focused on delivering hight GDP.
Most of that GDP comes from construction sector, which has been doing very well for very long.
Unfortunatelly China reached point, where there is no more need to new properties, roads, bridges. Huge ghost cities have been build everywhere. Construction companies have been receiving loans from banks, which have been told (by authorities) to provide all those businesses with required loans.
This is indeed great number manipulation. Imagine running company, which is building houses and those houses are being empty. But you (as a developer) are building more and more, providing people with jobs and enjoying unlimited loans. How long could you continue before your business would have to stop?
Cheers
Piotr
The Chinese government seemed to have a good start but as it is now with ghost cities, china economy might crash but at the same time, do you not think that the population of china could increase that the building will not be enough to accommodate them anymore.
For some years now, the Chinese are talking about a new model, a consumption-driven economy. Wages surged a lot, so did commerce, online businesses, retaill, car market etc. Population growth will stall, so they put many robots now into the factories...
@tipu curate
Upvoted 👌 (Mana: 0/25 - need recharge?)
Dear @futurekr
Interesting choice of topic buddy. I resteemed it already (which I hardly ever do). Simply because this topic is directly affecting me and my small business (all our products come from China - sucks big time).
I wonder how China will look like once it's all over. I wonder if this country will be torn apart by other world superpowers, which are feeling threatened (and Im not talking only about US authorities - there is many "powers" which would rather like things to be the way they are and China challenging it - is simply becoming a threat).
Right now what I would be paying attention is civil unrest. Is it really growing ? Or will Chinese population support their current goverment? That's hell of a question.
Thx for solid read. Upvote on the way :)
Cheers, Piotr
Like you, most other people and countries get their goods from china. As little as a HB pencil in my country is made in china, this is really scary for my country. So many business people in my country go to china with prototypes/sketches of products for mass production, although most of the products are of low value but they get them produced.
I wonder how a country that produces virtually 60% of goods in my country be manipulating data well, it is possible.
Hi @futurekr
I can't deny that what you say in terms of China's economy and economic growth is something that can be compared to the growth of other countries as they call the first world.
But now I ask myself a question, at what cost is this growth how many human lives are at this moment being slaves of this type of government.
They talk about China as a whole but they don't mention the people of that country.
Please excuse me if my words sound in protest mode, I don't want it to be misunderstood or turned into a political form.
When I make this point, I say it out of knowledge of causes, and because I know some Chinese who managed to flee China.
I must also admit it's a very solid read.
Saludos.
Mas que competir , se debe poducir calidad. Y tener precios justos.