China is among the world’s largest countries after Russia, Canada, and the United States of America. It has the second-biggest market after the United States. It is marked as the fastest-growing economy over the last thirty years having a growth rate in the gross domestic product of about 8% to 10% per year. It is also the second biggest importer as well as the overall largest exporter in the world. Mainly, the availability of cheap labor and the low production costs of its products are the reasons that allowed its economy to rise at a high rate in the world market.
The Chinese economy is mainly attributed to the policy reforms which caused economic development as well as increasing the personal efforts of the Chinese people. Nonetheless, there are still variations in China’s income. This is because China’s per capita is only about 2,000 US dollars, which is quite poor as compared to the universal standards (EconomyWatch par. 4). For this reason, even if China’s GDP rates as the second largest in the world, it remains to be a developing country.
Why is China termed as a Developing Country?
The government policies present in China kept its market unproductive and inactive until 1979. This was because farmers and businesses obtained less motivational benefits. Economic reforms started in 1979 when the government offered farmers the benefits concerning price and ownership as well as allowed to sell products in the free market. The government also recognized four areas on the coast that promoted foreign income. Price controls were also done away with in several products. Due to that reform period, the economy of China has greatly developed to the position it currently obtains (Morrison 5).
China is still a developing country due to its per capita gross domestic product. Internationally, for a country to be termed as developed, its GDP has to be over 10,000 US dollars. As per 2009, China had 3,677.89 US dollars in terms of per capita income. It is a country with very low available natural resources. China’s population is at 1.3 billion, and 43 million of these people live below the poverty standards. China has industries that are not well balanced among the urban and rural areas. It is still universally low in terms of the trade network. In terms of medical care and education among other amenities, the country is still struggling to satisfy the welfare of its population (Yuancong par.3).
China has made a move towards universal trade that has expanded its income from foreign income (Thomas 28). In addition to this, Morrison says in his article “China’s Economic Conditions” (14) that China needs to constantly continue to execute economic reforms to uphold its development and even dominate the market in the future. These reforms should favor some sectors like the banking structures, public social conditions, ventures owned by the nation, and laws against crimes concerning corruption.
Advancement in China has to be done while the country maintains government stability. The country has to efficiently sustain innovation, preservation of energy, and reduce environmental pollution. This is to intensify the available reforms as well as uphold the welfare of people. The government should create awareness on the need to uphold scientific development and also emphasize the parts of the development that need to be elevated (Wenxiu 1). The government should execute policies on monetary value.
Generally, to improve the development of China attempts to obtain a stable growth rate should be monitored while the costs should be controlled. The economic institution needs to be regulated, and the welfare of citizens ought to be developed. Reforms also should be executed to maintain peace in the country (Wenxiu 2).
EconomyWatch. “The Chinese Economy”. Economy Watch. 2010. economywatch.com. Web.
Morrison, Wayne M. China’s Economic Conditions. IB98014. 2006. Web.
Thomas, Stephen C. China’s Economy Development from 1860 to the Present. The Roles of Sovereignty and the Global Economy. 2006. Web.
Wenxiu, Han. General Thoughts on China’s economic and social development. 2012. Web.
Yuancong, H.E. Fu. Why Does China Remain a Developing Country. 2010. Web.