Recent Developments in China (Literature & Language Essay)

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Recent Developments in China
Being one of the largest economies in the world, China has seen a drastic increase in its economic growth rates in the last decades. The country’s transition from a command economy to a market economy has led the country to grow into the 2nd largest economy in the world by GDP. According to the “Made in China 2025” policy announced in 2015, China has decided to increase innovation and modernize its economy by taking the initiative in terraforming its ten significant sectors of manufacturing with extensive help from the government (Brandt and Rawski).
Political Factors Affecting China
China is among the fast growing countries around the world. The communist party rules the country uncontested (Sullivan). The country maintains political stability; however, the lack of political freedom is a rising concern to many analysts. The country’s slow but definite transition towards Protectionism is a major geopolitical factor that will eventually affect China. Since the country has a strong connection between imports and exports, Chinese Protectionism may lead to a downfall in exports and result in trade wars and barriers with other major economic giants in the world.
Economic Factors Affecting China
Being the second-largest economy in the world, China faces many problems regarding its economic growth. The ongoing tussle between USA and China has further weakened China’s relationship with the United States (a superpower) and brought uncertainty into the business environment, especially within the context of international trade (New York Times). The recent Covid-19 pandemic has fueled the trade wars between the two countries and has resulted in an increased probability of harming China’s geoeconomic stability. Cheap labour is the top reason why multinationals move to manufacture in China. However, the labour rates have tripled from 2009 to 2016 (Aulakh and Kelly), which makes it a concern for the country. If the labour becomes expensive, the multinationals will be stimulated to move to other countries, and China’s economy may take a direct hit.
Technological Factors Affecting China
China is home to many technology giants like Alibaba, Tencent and various others. The country’s innovational policies and entrepreneurial freedom is the leading cause for it being an innovation-driven economy. Since the country has cheap labour rates, many other multinational tech giants are situated in China, and the country benefits from the foreign companies’ advancements in the technological world. It shows how big of an opportunity China creates for domestic and foreign entities in terms of science and technology.
Environmental Factors Affecting China
Since China is a hub of industry and has many domestic and foreign companies in its geography, the risk of harmful environmental practices cannot be ignored. The country faces water and air pollution problems due to factory waste in the climate. China is taking initiatives in sustaining a green environment and spreading local awareness regarding side-effects of an unpleasant environment.
Cultural Profile of China