China Essay
“Why China Will Have an Economic Crisis” Essay
After Mao’s era, with Deng’s leadership, China was able to experience rapid transformation and growth. With a unique approach, China has a state-led model to capitalism. It is currently one of the biggest exporters and importers in the world, with a high population to enable a huge manufacturing industry, cheap labor, high competition and a huge industry capacity in virtually everything- infrastructure, housing, offices, malls... However, many economists predict that China will have an economic crisis despite its growth and super power role in the global economy. There are both reasons why the economy could collapse and reasons why the economy may not be as bad as we think. This essay will mainly look at reasons that there will very likely be a crisis, but will also acknowledge possible counterarguments.
It is perceived that China is heading towards the Asian development model, like Japan and most of East Asia where it operates on low wages to grow in exports and imports to be able to industrialize and invest and apply it to other sectors. The author of the article predicts that this creates price distortions and crashes the banking and financial sectors with the excess capacity created. Although in the short term the Asian model achieves like in the past (East Asian countries), what is often referred to as, “the greatest surge of wealth in human history”, it does not seem sustainable. There have been many articles and books, by authors of Chinese ethnicity and deemed experts on their country, such as, Gordon Chang, Mixin Pin, Ping Shi all of who depict the Chinese upcoming collapse, to the point where it may seem it is difficult to take anything seriously- This may be seen as these experts just living off of predicting the collapse on China and perhaps there may not even be such a crisis. It can also be argued that these predictions come out every year like in 2012, but the Chinese economy is still standing
After Mao’s era, with Deng’s leadership, China was able to experience rapid transformation and growth. With a unique approach, China has a state-led model to capitalism. It is currently one of the biggest exporters and importers in the world, with a high population to enable a huge manufacturing industry, cheap labor, high competition and a huge industry capacity in virtually everything- infrastructure, housing, offices, malls... However, many economists predict that China will have an economic crisis despite its growth and super power role in the global economy. There are both reasons why the economy could collapse and reasons why the economy may not be as bad as we think. This essay will mainly look at reasons that there will very likely be a crisis, but will also acknowledge possible counterarguments.
It is perceived that China is heading towards the Asian development model, like Japan and most of East Asia where it operates on low wages to grow in exports and imports to be able to industrialize and invest and apply it to other sectors. The author of the article predicts that this creates price distortions and crashes the banking and financial sectors with the excess capacity created. Although in the short term the Asian model achieves like in the past (East Asian countries), what is often referred to as, “the greatest surge of wealth in human history”, it does not seem sustainable. There have been many articles and books, by authors of Chinese ethnicity and deemed experts on their country, such as, Gordon Chang, Mixin Pin, Ping Shi all of who depict the Chinese upcoming collapse, to the point where it may seem it is difficult to take anything seriously- This may be seen as these experts just living off of predicting the collapse on China and perhaps there may not even be such a crisis. It can also be argued that these predictions come out every year like in 2012, but the Chinese economy is still standing
Bibliography: "China Is Headed for a Japanese-Style Economic Crisis." Time. Time, n.d. Web. 30 Nov. 2014. Lallanilla, Marc. "China 's Top 6 Environmental Concerns." LiveScience. TechMedia Network, 15 Mar. 2013. Web. 30 Nov. 2014. "Why China Will Have an Economic Crisis | TIME.com." Business Money Why China Will Have an Economic Crisis Comments. N.p., n.d. Web. 26 Nov. 2014.