In an era where several developments have taken all over the world making an impact on the global economic conditions, China seems to have taken the crown. The China economy has witnessed a tremendous streak of success and growth, thus making it one of the fastest developing economy in the world. Here are some of the ways in which this economy has grown and the pros and cons of this growth.
More job opportunities
Over the years, a number of companies from all over the world have started their manufacturing plants in China. Apart from this, several Chinese companies have been given contracts from several companies worldwide, to handle their manufacturing procedures. This has provided the opportunity to create several jobs within the country thus allowing more people to work and be free from poverty. In addition, the China foreign policy news have also improved over the years, thus making two of the most powerful countries in the world to join forces and contribute to the global economic development.
Increase in buying power
In a country which comprises of around 20% of the world’s population, a common dilemma that exists is the lack of buying power owing to poverty amongst the common population. This issue poses as a disadvantage as there isn’t enough money circulating within the economy. However, with the major developments that have taken place over the years, such as the China US trade relations, there seems to be an increase in the buying power as consumers can afford to purchase the items that are being sold in the market. Since the people have started earning more, they can afford to spend more. Visit https://www.chinausfocus.com/tags/china-india-relations/
Lack of entrepreneurship
Despite the tremendous growth that the China economy has witnessed over the years, there seems to be a prevailing issue that is largely ignored. Since majority of the companies in this economy happen to be state-owned firms, there is very little capacity for any new ventures to emerge, thus limiting the chances of any new innovations from taking place. Therefore, this can pose to be a risk factor in the future as there may come a point where the economy may experience several obstacles which could result in decreasing the pace at which it grows and may even lead to a collapse in the economy.
Every economy has its own set of advantages and disadvantages. However, despite the number of disadvantages that seem to prevail within the economy of China, there seems to be sufficient growth to combat these issues and make it retain its position as one of the most powerful economies in the world.