China economy
How to Develop China’s Economy Effectively
Contents
1 Introduction 1
2 Main Issues 2
2.1 Baby Boomers: How to deal with the huge aging population 2
2.2 Gen Y: The second-generation migrant workers bring new challenge and opportunity for China’s urbanisation 3
2.3 Technological Issue: Quality and Innovation 4
2.3.1 Quality 4
2.3.2 Innovation 5
3 Conclusion 8
4 Recommendations 9
5 Reference List 10
1 Introduction
Since opening and reforming the market in 1978, China has turned from a plan economy to a market based economy system and achieved a high performance development of economy and social. It can be seen from that China has maintained its growth of gross domestic product (GDP) at a high level of 10 per cent one year and lifted more than 500 million people out of poverty, besides China has achieved or are within reaching its all Millennium Development Goals (World Bank, 2013). Due to the rapid growth of economy and the largest population of 1.3 billion populations, China now has become the second largest economic entity (Fenby, 2013) and produces an increasingly essential influence to the global economy. However, China still cannot step into a developed country and the market of China also needs to be reformed further. In addition, according to Central Intelligence Agency (2013), China’s gross national income per capita of 9300 dollars only located at 124th in the world. Furthermore, there are approximately 128 million people in China’s rural areas who live under the national poverty line of RMB 2300 per year (nearly 1.8 dollars a day) and 100 million more than under the previous standard (The Guardian, 2011). Besides, China also has the second largest poor population after India which means reducing poverty still should be remained as the primary objective for China (World Bank, 2013). Rapid developments of economy not only bring financial achievements but also cause several challenges such as demographic issues like baby boomers and Gen
Contents
1 Introduction 1
2 Main Issues 2
2.1 Baby Boomers: How to deal with the huge aging population 2
2.2 Gen Y: The second-generation migrant workers bring new challenge and opportunity for China’s urbanisation 3
2.3 Technological Issue: Quality and Innovation 4
2.3.1 Quality 4
2.3.2 Innovation 5
3 Conclusion 8
4 Recommendations 9
5 Reference List 10
1 Introduction
Since opening and reforming the market in 1978, China has turned from a plan economy to a market based economy system and achieved a high performance development of economy and social. It can be seen from that China has maintained its growth of gross domestic product (GDP) at a high level of 10 per cent one year and lifted more than 500 million people out of poverty, besides China has achieved or are within reaching its all Millennium Development Goals (World Bank, 2013). Due to the rapid growth of economy and the largest population of 1.3 billion populations, China now has become the second largest economic entity (Fenby, 2013) and produces an increasingly essential influence to the global economy. However, China still cannot step into a developed country and the market of China also needs to be reformed further. In addition, according to Central Intelligence Agency (2013), China’s gross national income per capita of 9300 dollars only located at 124th in the world. Furthermore, there are approximately 128 million people in China’s rural areas who live under the national poverty line of RMB 2300 per year (nearly 1.8 dollars a day) and 100 million more than under the previous standard (The Guardian, 2011). Besides, China also has the second largest poor population after India which means reducing poverty still should be remained as the primary objective for China (World Bank, 2013). Rapid developments of economy not only bring financial achievements but also cause several challenges such as demographic issues like baby boomers and Gen