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Opinion in respect to the rise of China

In the past twenty five years, China has enjoyed a healthy economic growth every year. Massive wealth has been created and millions of Chinese have risen above the global poverty line. Throughout China, one can witness the rapid modernization of infrastructure. You will see superhighways, tall buildings, airports and telecommunication facilities. The impact of China’s economic development has affected the world wide economies in a substantial manner. Due to the rapid economic growth, the demand for energy has increased rapidly. The country has become one of the largest consumers of oil and electricity in the world. This demand will drive the price of energy up and it may add the pressure of inflation creating pressure on other developed countries.

China’s growing impact in global manufacturing is going to put enormous pressure on global economies, in order to protect their local manufacturers. Developed countries will definitely put pressure on China. Countries most likely to benefit from the expansion of China’s trade include exporters of capital and resource intensive products, while countries that specialize in labor intensive export that are similar to those of China, may face a new challenge. Expanding trade could increase regional income imbalances, while foreign competition could face the increased pressure of rising unemployment. Since 1979, China has been moving away from its communist state-controlled economy and it has adopted some of the concepts of free trade. It has been privatizing many businesses but the growth of China has created social and environmental problems. There is a huge gap between the rich and the poor. Wealth and income are highly concentrated and the rural population still suffers from low incomes. The growth of industry also created problems of pollution and shortages of energy. Other challenges include quality of products, billions of non-performance loans and exchange rates of Chinese currency (RBM).

Things that go up must come down. Do you think the rise of China will continue?