Inside the Modern Dragon
China's Roaring Economy
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China--A Fast growing giant:
China has industrialized faster than almost any country in history. It is now an economic giant. For the rest of the world, China's growth means fierce competition and rapidly changing market conditions. It may seem ironic that China—a reluctant reformer led by a Communist party—is a dominant player in the global capitalist system. But Chinese businesses are as fierce market competitors as any. Once profit became a driver in the Chinese economy, a dragon was let loose. Now, Chinese industrialists are able to produce more goods at lower costs than most foreign competitors. Thanks in large part to government subsidies that keep costs of production low—not to mention availability to low-wage workers, China has gained significant market shares in the manufacturing, textiles, consumer staples and industrial sectors. Now many in the country are setting their sights on the service sector.
By the numbers:
Since Deng Xiaoping opened China to the global economy nearly three decades ago, the country has pursued rapid economic growth generated by exports of low-cost goods. The pursuit has produced many positive results: Annual value of exports grew from $39.4 billion in 1987 to $969 billion in 2006; the economy grew at an average annual rate of 9.5 percent from 1997 to 2007; poverty rates plunged; and quality of life improved—China’s Human Development Index ratio rose from 0.53 in 1975 to 0.77 in 2005.
Global impact:
China’s track record of expanding its economy by 8, 9, 10 and 11 percent per year is the envy of the world. Thanks to its double-digit annual economic growth, China is emerging as a major world power. Many economists predict that it will become the world’s largest market by 2025. China owes its successes to its ability to market itself as a leading provider of cheap land, labor and resources. It is a story about fierce capitalism that challenges the world to compete in an aggressive, and perhaps defensive, fashion. China’s rise has a significant and irreversible impact on the way the world does business, hires workers and buys products. In short, China matters.
About this Project
This is a web-based journalism project about modern China—a country undergoing massive industrialization and technological change. The purpose is to promote a better understanding of China and its role in the world. [Read more...]
