China started with the economical reform long time
back. There has been a substantial growth in economy along with the GDP growth
after the inflation and this has neared to an amount of 9% in one year. Within
one single generation China has caused a transformation from the economical
point of view. There are more than 500 million people contributing to Chinese
economy at the point of complete poverty level along with the rest of the
notable but the lesser acclaimed achievements. China is one of the developing
countries to participate in the Human Genome Project and it is the first
developing country in manning the space program with best of completion.
Facing
the Challenge
These days China is facing the monumental challenge
in economy and also in the political sphere. What is most spectacular about the
economic growth is that it can slow down after having an overwhelming period of
performance. The reason for the slowdown is absolutely benign. It is not easy
for the economy of a country to grow at the fastest when the per capita GDP is
preferably high. The consequence of the slow down occurs following the same
rhythm and there are more things you would like to do in relation to the
economical status in China.
Reasons
for Economical Downfall
It is not that China is a richer country and in turn
it has contributed in the economical slowing down in the recent years. One
vital reason behind the slowing down is the incorrect structure of the Chinese
economy and inefficiency of people involved in the genre. There has been
several reforms taking place from time to time but the Chinese economy had not
been able to stand the test rightly. China is till date substantially statist
in the stage of orientation. In result, for each of the percentage point of the
GDP growth, China is in need of extra vigor and investments along with the
complicated implications as part of the environment.
More
Reasons to Point Out
The economical slowing down is not best for the
health and status of Chinese population. At one time the economical condition
of China was on the highest rank because of the quality of the exports. There
were more reasons for the developed condition of the Chinese economy like fixed
assets and investments, infrastructures and the high and low cost labor force.
Things were not dependent on innovation and technology and here was the blow to
the structure and status of Chinese economy in the real sense.
Balancing
the Economy
In the years of 1980s and 1990s the augmentation
happened and once again the Chinese economy was on the rise. Efforts were made
to catch up with the Western economies. However, there have been evidences to
show that China has been hitting the wall of diminishing the rate of returns to
the economical growth model. In the situation, the export growth has been the
major factor and it has been the growth driver at the stage when the western
economies did not have that speed. At the time the Chinese investment in the
genre of fixed assets has already touched the standard amount and this is
almost equal to the first half of the country’s GDP.
The
Final Words
It is hard for any other country to match with the
level of intensity in the field of Chinese investment. In consequence, there is
not much for the each additional amount of investment. You already have the
emerged concerns regarding the implications of the Chinese economical slowing
down. However, after the period of COVID attack the government of China is trying
hard to improve the face of economy and in the case they are taking help of the
people who are directly involved in the field of economy with the best of
intent. According to the Chinese press there have been several cities that are
experiencing the perfect repricing along with the value of the real estate
assets.
Source
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