In 1976, Mao Zedong died and China’s seclusion came to an end. Its next leader, Deng Xiaoping, opened China’s gates for external investments and businesses that made the country an economic powerhouse.
The communist ideals that Mao started have banned businesses in the country but Deng have turned China from a communist agrarian system of economy into a capitalist system.
Now, China is the leading exporter of manufactured merchandise in the world. A lot of western businesses subcontract their labour force in China specifically because of the country’s low-cost labour.
In just a decade, it is indubitable how China has physically transformed itself and created an elaborate form of economy. This year’s forecast in China’s economy expects a 7-9 percent growth in GDP.
The Chinese are also well-known for their business competence. In every country around the world where there is a large Chinese populace or China towns, a lot of them make their livelihood by way of business and most of their businesses are stories of achievement.
As China’s economy go on rising, a lot of finance experts still see plenty of obstacles that could halt its development or even cause its economic demise.
There is a certain economic imbalance that still occurs in China. One of which is the issue of imbalance in terms of development in favor of urban areas over rural. Although the improvement on the urban lifestyle, a lot of people in the rural areas still experience hardships particularly the lack of good agricultural equipments and housing facilities.
Taking quite a few page from “The Great Leap Forward” where Mao ordered farmers into industrial workers resulting to China’s starvation. Today’s China, however, have a more balanced food production than ever before but more improvements are necessary before it can achieve perfect balance.
Another obstacle is China’s tense political and societal environment. So far, every dissent in the country has been suppressed with no mercy in its mainland and other places they claim to be theirs such as Tibet.
In order for China to continue its rule over the Tibetans is by migration of the Chinese population to Tibet, constructions, and banning freedom of expression.
Another area known as Xinjiang, home for big number of Chinese Muslims known as Uighurs, is also experiencing both economic and political instability because of strife.
Climate change is an important factor that poses the most serious peril not just to China but the whole world. A large percentage of the world’s overall carbon emission is produced by China. The consequences brought about by this could not just upset China, but also to countries near or far. The irreparable effects of climate change will bring about rising sea levels will undoubtedly cause problems in China’s south, and could even melt glaciers from China’s western part and the Tibetan region which will ultimately be a cause of flooding and fresh water shortages.