First is the economic growth. China has been growing at about 8% of its GDP annually for the past decade or so. This year their goal was lowered to 7.5%, which is the first time in 7 years that the goal has been beneath 8%. When Mr. Jiabao announced this goal it came with a bit of backlash. The Chinese people have a rapidly growing population which needs to be supported by an equally growing economy.
One of the ways that China has been attempting to stimulate the economy through growing wages. If the population has more money to spend on goods and services then the economy can continue to grow. These increased wages are probably a result of the one child policy as the working age population is lower at the moment due to that policy so businesses can afford to pay their workers more. As the working population rises again, the wages might decrease again or just not adjust for inflation.
When Mr. Jiabao referred to political changes, he didn't mention specifics. But he said that political reform would lead to the sustainability of their incredible economic growth. This most likely means political liberalization and more capitalistic approaches for the Chinese people. Capitalism means choices in the economy, and with that people will want to have a choice in how that economy is run.
These reforms seem eerily reminiscent of the changes in the USSR that lead to its fall. As the Chinese government allows more political rights they will allow their people the ability to dissent. This dissension will eat away at the party's sovereignty and legitimacy. This should eventually lead to the downfall of the Communist Party in China. So, to sum things up, China looks like it will be falling out of its current ways and begin to Westernize in the next decade.
With such a large amount of people and increasing population, the economy can't possibly keep up with it for too much longer.. especially with a widening wealth gap. Economics has to go through phases, so it's not just going to keep growing, and soon enough I'm sure its just going to collapse.
ReplyDeleteChina is strange in that its governmental structure and its economy don't seem to fit together. While the growth it currently is experiencing cannot possibly continue for much longer, I feel the Chinese economy is in a much better place than that of many countries. Because they are gaining power so quickly, there is bound to be backlash when the growth slows to the level of a normal developed country, inevitably. However, while the Chinese people have a say in their economy through capitalism, they have little REAL say in the government. With so many people, and such a wide expanse of people geographically, it is difficult to control a country without a strict governmental structure -- think 1800s United States; the government didn't keep an eye on the west much because they couldn't, and the people there developed their own ideas, customs, and laws.
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