It all began in 1980 after Deng Xiaoping came to power and China had moved gradually from being one of the poorest countries in the world to what is commonly called the "world's factory".Taking advantage of abundant and cheap labor, many companies decided to settle down in this country and began leading it to impressive growth that was almost uncontrollable.
How was the People's Republic of China able to spend in the prevailing scenario? What is the actual situation of China in the global economy? Did this Asian giant have a highway to success laid out before it? What are the different problems that China must resolve before asserting itself as a world power?
Is China a leading country for only one factory in the world? We analyze the success and limitations of the Chinese model.
Within a few years, China has grown from a negligible position to an international economic superpower. Between 1979 and 2004, there was an average increase of 9% of GDP per year, and during the same period, the share of China's GDP in world GDP has increased from some 1.8% to 4% and this represents an extraordinary increase.
Currently, China is the third largest economy after Japan and the U.S.This rise was impressive for the whole world of economists.
But how has China been able to sustain its double-digit growth in almost all these years? The answer lies undoubtedly in foreign companies who chose from the 1980s to relocate to China and to take advantage of cheaper labor. Such relocations have increased dramatically and have impacted rate of FDI (Foreign Direct Investment) from a few billion dollars in 1979 to over 75 billion U.S. in 2007. The UNCTAD has provided for a continuous evolution in the years that followed.
[...] The funding problem may also be related to the fact of the very low corporate governance that exists within these banks, and there is no independent steering committee or board of directors or supervisory committee, no system balance of powers. There is no internal mechanism of control that would prevent the diversion of capital. In this context, it is not difficult to understand why the bank directors continue to lend money to SOEs, even though they know they have little chance to recover their loans. [...]
[...] Indeed, integrity is much simpler than for a woman but the problem is that the number of men will dramatically increase in the coming years, and men must be resolved to live alone with all the problems that will lead to strong psychological tensions ) Energy, a major problem 2.2 .1) The supply of fossil energy Energy is a major problem for China and it has still not managed to control this problem . In 1980, the energy consumption of China was only less than a quarter of U.S. [...]
[...] 1.2 ) The world's factory Commonly called "the world's factory", this nickname comes from the fact that China produces 50% of cameras of televisions of washing machines annually and is the fourth largest exporter and was the first world of toy manufacturing and textiles .Any consumer could realize that much of its property shall be marked by a "Made in China" label.As explained in the previous chapter, China is a country where there is more FDI and obviously, these investments are felt in the housewife's life. [...]
[...] It is important for the Chinese government to succeed in finding a balance between growth to secure for millions of people who arrive each year on the job market to find employment and growth by not filling the uncontrollable rise of inflation. This work will not be easy because if China's growth came back down below 6 or China would explode the rate of unemployed, and it will take all the intelligence of the Chinese leadership to find the balance between growth and controlled inflation. [...]
[...] Finally, based on this quote and its breeding ground for education, we can question the spirits following the implementation of a law to avoid brain drain, and they will be obliged to repay their scholarships ) Brain drain China will be the world leader in science and technology by 2020, but suffers from brain drain to foreign countries. Indeed, we must not take for granted that China will be the next Eldorado in the Science World. According to the Chinese Academy of Social Sciences, since million Chinese students who went abroad and only 275,000 have returned after their graduation. [...]
APA Style reference
For your bibliographyOnline reading
with our online readerContent validated
by our reading committee
