China’s economy has been in the spotlight recently in terms of scrutiny and blame. The fact that China is by far the fastest growing economy in the world is causing the world to take a second look at China and its economic as well as political potential. Investing MNCs are also worried that China’s economy may soon slow down or even collapse due to several internal problems. The US is also taking this chance to officially make China its scapegoat for blaming the bad state of the US economy upon. Finally, China’s rapid rate of industrialization has created a huge environmental crisis in China, and this may affect the way international companies operate in China, as ethical and environmental concerns come into play. Much information was found for both supporting as well as criticizing the Chinese economic success, and a few of these are discussed below, organized into positive and negative facts.
Positive Facts About the Chinese Economy
In the past 2 decades, China has shown tremendous growth, and has now become a world leader in terms of consumption of raw commodities. As a direct result, China’s huge population has served not only as a powerful workforce, but also a lucrative market, and this has helped nearby countries so much that their economies are virtually dependent on that of China. As a direct result, (although relatively unlikely to happen) if China’s economy does stall or even collapse, it would definitely affect many countries worldwide, especially the smaller Asian countries that neighbor China, as well as large industrialized countries such as the US.
China’s international trade pattern is very peculiar: while china imports most of its stuff from neighboring countries such as Australia, Japan, Taiwan, and Korea, most of its exports go to the US. ...