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China’s Development Model: An exquisite transformation from a developing to a d

Popularity 1Viewed 2780 times 2017-3-25 20:16 |System category:Economy| developed, country, China

This report reflects a brief analysis of some prominent economic indicators which have been playing an indispensable role in stabilizing the development of China and gearing up for the challenges being encountered in a competitive ambiance under contemporary globalized economies. Though still the positive effects of frequently mentioned progress are not trickled down completely, but these might be visible by keeping the same pace or even with better strategic planning.

The most prevalent indicator in any economy has been Gross Domestic Product (GDP). Without going into decoding GDP, the statistical figures are explicitly witnessed to the share of China’s GDP in the world, tending to show a balanced increment. The following is the data from 2000 to 2015 of the world’s giant economies by the courtesy of IMF.

But in the first quarter of 2016, the GDP declined dramatically decoding into three salient reasons including labour, productivity and capital. The labour force is declining whereas the productivity cannot be achieved by transferring innovation from other countries but should be increased by promoting domestic creativity and finally China is investing 50% of its GDP which increased the total debt to 237% of GDP during the first quarter of 2016.

It can be seen from the statistical data being graphed by CEIC showing a dramatic decline in 2016. The reason as described supra must be kept into account while moving ahead with economic prosperity.  

According to the National Bureau of Statistics of China 2014, the private sector is ahead in providing economic growth and the major share is of services including travel, education, entertainment and health care. Other crucial contribution is from industrial and agricultural sectors also accounting for 90% of China’s exports.

According to the World Bank data from 1980 to 2013, China was at the top in reducing the poverty as compared to any other country. The following graph is a comparison of China with Brazil, India, South Africa and the other countries.

It is obvious from the above data that the poverty has been declining drastically in China which shows the transfer of positive financial outcomes to the people who were living below the poverty line. This aspect is critical because the life of a common person reflects the image of a country therefore the steps being taken in order to coup the poverty are praiseworthy.

It has been stated by New York Times that China is the largest exporter and the second largest importer of merchandise goods.

As indicated in the image by New York Times (2013), the major destinations of China’s export are USA, the European Union, Hong Kong, Japan and Korea respectively with 94% of manufactured goods, 3.2% agricultural sector and 2.7% mining products.

The China Global investment tracker by American Enterprise Institute reported data related to worldwide Chinese investments and construction from 2005 to 2016. It is noteworthy that the development financing by China has outstripped the development funds by the major financial institutions including World Bank, Asian Development Bank, European Investment Bank and African Development Bank. The main investment is focused on the infrastructure and in this context the Silk Road Project (Belt & Road initiative) has been under appreciation.  Also, China has been vigilant in building up the trade relationships with all over the world and the proportion is being indicated by China Global Investment Tracker -American Enterprise Institute in Fig.6.

By the graphical representation, the major investment areas include Asia, Europe and North America with a lot of projects under completion.

The education sector has been a pillar in building up a country’s economy. In China, it is satisfactory but need a lot of improvements. The length of the classes is more than an hour and sometimes 3 hours or even more with unusual timings especially after 5pm making the classes monotonous and annoying. The communication gap between the teachers and students is huge as friendship is hardly noticeable which creates fear and obfuscation among the students. The architect of the dorms need to be revamped as in one room at least 4 individuals are accommodated, exterminating the privacy completely and consequently creating many obstacles in the way to produce innovative and creative ideas. The libraries are not equipped with free WiFi facilities and the staff is not professional. So, this issue should be discussed with possible solutions to arrange classes not exceeding more than 50 minutes, single rooms as it is possible in the same space, a friendly rapport between the teachers and students with a sense of humour included during the lectures and free WiFi within the premises of the universities accessible to the students and the staff. In addition, a lot of industrial trips should be organized, the symposiums must be initiated by the presence of professionals to share ideas and career counseling is indispensable to scrutinize the interest of a student to achieve the maximum benefits out of it.

Another salient facet is to build public libraries in excess with free internet facilities. It becomes difficult for the local public to access the libraries present inside the universities or distant. In the West, this aspect is overseen advertently to educate the people about the basic issues and the outcomes we can evaluate by their phenomenal progress.

In conclusion, China has all the potential to be at the top of world’s largest economies and by assessing the current pace of development, it is definitely achievable by realizing amelioration in the living standards for all.    

China’s Role in Global Economy (Source: IMF)

China’s GDP decline in the first quarter of 2016 (Source: CEIC)

Major Sectors’ contribution in GDP

World Bank: WDI Poverty Headcount

China’s trade with each country-2013 (New York Times)

China’s Investment throughout the world (The China Global Investment Tracker -American Enterprise Institute)

(Opinions of the writer in this blog don't represent those of China Daily.)


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Reply Report kraza 2017-3-25 23:25
mauriciomunhoz: China is always expanding the market and offering new offers. If manufactured products are still the most important in Chinese exports, the export of  ...
should be, i agree

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