Economics China Essay PDF

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China Economics essay for Topic 1 of HSC economics...

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Assess China’s progress in terms of its economic growth and development China has progressed greatly in terms of economic growth and development. China has shifted away from a socialist mkt towards a mixed market eco. This shift has been influenced by the introduction of eco policies in 1980, rapidly integrating with the global eco. China has emerged from a developing eco status into an emerging economy and has become an economic powerhouse. Because of the policies such as the Open Door Policy(ODP), Special Economic Zones(SEZ) and joining the WTO, China has expanded its eco growth massively. China has also progressed in its development through measures including the RMB stimulus, One Belt One Road(OBOR) and the recent 13th 5-year plan. China’s progress in eco growth was started by the introduction of the ODP. The ODP adopted in 1980, opened up China’s market to the world. China started focusing on growing its economic growth, through the SEZ’s. The ODP started by increasing trade, reflected by the increase of trade as a part of GNP from 10% in 1978 -> 36% in 1996. This mirrors the significant rise in eco activity, However, as successful as the policy was, it opened up a gap between rural and urban provinces since all opportunities occurred in urban coastal regions(SEZ). Hence, the ODP was effective in growing the economy although at the cost of wealth inequality. China utilised SEZ’s to implement the ODP. SEZ’s were coastal regions attracting TNC’s with lower import duties, lower labour costs and lower government taxes. This attracted various TNC’s to China, rapidly expanding its growth, with an average growth of 9.2% during 19801990. The SEZ’s are special zones that have X-friendly conditions, that benefit both China and TNC’s because both of them increase their revenue earnt. The significant growth reflects the success of the ODP policy in increasing the eco growth through the introduction of SEZ’s. Overall, the ODP policy was immensely effective in increasing China’s eco growth and development. ODP also influenced eco-development in China. Eco growth is the physical growth in output of a country whereas eco-development is the growth in quality of life indicators(HDI). China’s ecodevelopment rose indirectly because of the significant new opportunities introduced, the HDI increased from 0.36(1980) to 0.7(2010) portraying the large rise in eco-development. Although, rural development was far weaker in rural provinces such as Tibet compared to urban areas such as Fujian this was again because of the disparate opportunities. China significantly grew its eco-development because of the ODP policy however, there arose issues in development between urban and rural. Furthermore, China’s interaction with the WTO membership in 2001 represents China’s willingness to open up its domestic market and open up more X opportunities. China adhered to the WTO’s strict rules on free trade has proven effective with exports rising from $310 billion USD in 2001 to $1.7 trillion in 2012. China has continued its significant eco growth because of the WTO membership. However, the inequality continued to remain with the Gini coefficient remaining steady at 0.41 between 2001-14, reflecting opportunities only making the rich richer. China increased its eco growth through its membership with the WTO in 2001.

China has continued to progress its eco-development along with growth. The Chinese government has shifted its focus from eco growth and moved towards development. This was achieved in the RMB stimulus in 2008 as a result of the GFC declining consumer confidence and falling X revenue. The Chinese successfully addressed with a $4 trillion RMB stimulus into the economy, with 72% of it going into domestic investment. The government largely invested in public goods -> encouraging consumers to spend and ultimately restimulating growth in the eco. Through the stimulus, China was able to recover eco growth from 6% in 2008 -> 8% in 2009. Hence, the RMB injection produced a significant rise in HDI. China has also shown its intent in moving away from growth in the One Belt One Road initiative(OBOR). The planned initiative is aimed at helping poorer countries develop through lending that was spent on infrastructure. China has largely targeted developing ecos where there are instability and low HDI with an estimated $6 trillion on investment. The gov has also tried to address domestic inequality with different initiatives aimed at rural provinces and aiding their development with $500 billion US dollars worth of projects. Although there have been problems with his policy, when countries have defaulted on repayment, it means China can take hold of any asset possible. With an interest rate as high as 10% for developing nations, this increases China’s international dominance. Hence, China has moved away from eco growth towards eco-development. Ultimately, China has emphasised its intent on development through its recent 5-year plan(2016-2020). This has been aimed at increasing the number of doctors per 1000 people to 2.5, increasing life expectancy by 1 year and an annual growth target of 6.6%. China has shifted away from growth to focus on domestic consumption, represented in the new 5-year plan. The aims are designed to increase HDI/ quality of life to result in an advanced economy. Therefore, China has been extremely successful in terms of growth and development. Thus, China’s progress in terms of eco growth since 1980 has been immensely effective. Through policies such as ODP, SEZ and WTO. China has significantly increased its growth. More recently, China has shifted towards development with RMB, OBOR and the recent 5-year plan....