Not so transparent after all

In todays blog I will be diving into the muddy water of China’s booming economy. I will way up the positives and negatives of the boom. I will then focus on the problems that China faces now due to many affecting factors. I hope that you enjoy and get a brief but better understanding of China’s economic growth.

How muddy is the water really?

link to the origin of the image

In this section I will attempt to, in as much detail as possible, set out all positive and negatives about China’s rapid economic growth over the last 20 years from 2000–2020. Unfortunately it is always important to remember that despite their impressive economic growth China is insisting on ignoring good levels of humanitarian rights for its general population. A generation ago China stood at the bottom of most international rankings of nations but due to its determination over the last two decades it has risen to a superpower status and is rivalling and in some cases beating the US of A in many sectors such as education.

pros:

  1. GDP is $11 trillion”: In 1980 China’s GDP was $300 billion. However in 2015 China’s GDP has risen exponentially to $11 trillion which places it in second for the largest economy in the world in terms of exchange rates.
  2. $4 trillion trade globally”: In 1980 China’s total trade with the outside world amounted to less than $40 billion. Now this has increased a hundred fold to a whopping $4 trillion with all other countries globally.
  3. building Rome every 2 weeks”: By 2005 China was expanding its total urban areas by the area of the city of Rome every two weeks. That is an expansion of 1,285 Km2 every two weeks.
  4. Concrete consumption”: Between the years of 2011–2013 china’s production and consumption was larger than the US of A in the entire 20th century. This is a clear indicator of how their economic growth is unchallenged by any other country.
  5. Europe's housing stock”: China, in the last fifteen years has built the equivalent of the entire housing stock of Europe. They also in recent years have achieved housing revolutions such as building a 57 story building in only 19 days in 2014. This speed and efficiency had never been seen before.
  6. High speed trains”: China has the most extensive high speed railway service. China now has more high speed rail trach than all the other countries added together in the world.

cons:

  1. left-behind children”: At the beginning of the boom in economic growth in China many farmers changed their trade and went to work in mass-production factories. There was one real downfall for families, the workers were not allowed to bring their children to the cities with them. this in turn gave birth to the phrase, “left-behind children.”
  2. 18% of the worlds warfare GDP”: In 1980 China had only 2% of the worlds military warfare spending. In 2015 China’s price to pay in its own national currency for all of its total military and warfare spending became greater than the US of A and it sits at 18% of the world’s military GDP. I am aware that some may argue that this is a positive as it asserts China on the world stage as a leading military supper power however for the purposes of this section I have decided to put it into the negatives instead of the positives. China’s total military spending is second only to the US of A.

In my opinion I would say that economically China is doing every thing right and I believe that it has no interest or intention is stopping the growth. Napoleon did say that “let china sleep because when she awakes she will let the world know her presence” and that is exactly what happened. However on the flip side the humanitarian rights of the country are next to nothing and in all seriousness I think this lets the country down and makes it a great threat to the world as if it can treat its people so badly what could it do to foreign bodies.

This above information was collated from one source, so I have added the link to the sight of origin for the video. You can then watch the full video in your own time if you wish. It promises to be interesting.

link to YouTube video 1

Problems for China

link to the origin of the image

In May of 2017 China’s credit rating agency Moody’s cut China’s debt rating for he first time since 1989 and warned that the countries financial self was suffering from rising debt. This in turn was slowing China’s economic growth. One of the main questions now being asked is “where has all this debt come from?” The answer can be found in the occurrence of the 2008 financial crash in the west of the world. China, in this time, borrowed heavily and thus ended up pilling up debt all over the place. Corporate debt then sored to 170 percent of GDP in 2017 which at that time was roughly double most other economies. Also for the first time since 1999 China’s sovran ratings has gone down which emphasises the countries greater economic and financial risks.

In China the Fiscal system is declining and the Chinese local government system is week this is also the case because China’s economic system requires a lot of borrowing from governments and not banks. So all in all China’s problem is not with the banks its with borrowing expenditure. Now I will quickly talk about China’s real-estate problem. There is a huge amount of empty housing in China’s lesser cities thus leading to high production cost with no payment. The Chinese government has asked for people to move into the lesser cities and out of the main capital and cities. Unfortunately for them no one has. Zoning and building regulations distort prices and deter people from buying in lesser cities.

This above information was collated from one source, so I have added the link to the sight of origin for the video. You can then watch the full video in your own time if you wish. It promises to be interesting.

link to YouTube video 2

That’s all for Day 8, I hope that you have enjoyed this fact heavy and interesting blog on China’s rapid economic growth. I find this topic really interesting to look at in brief. It also fascinates and appals my to understand that a country such as China can get away with treating its low paid manual laborers so inhumanly. Do you agree? Day 9 will be called, “ Economical inequality.”

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