What Do You See As The Principal Economic Challenges Faced By China And How Might These Be Addressed?

7955 words - 32 pages

StructureIntroductionEconomic Historical Background of ChinaChallenges and Recommendations faced by Chinas economyChallenges faced by WTO MembershipChallenges faced by SOESRecommendationChallenges for the financial sector reform in ChinaRecommendationThe Challenges of AgricultureRecommendationChallenges Based on UnemploymentRecommendationChallenges and Recommendation based on EducationChallenges based on OverpopulationRecommendationConclusionINTRODUCTIONWith the development of the global economy, the Republic of China (PRC), depending on its remarkable economic achievements in recent years and its huge market potential, is attracting more and more countries interest. During the period from 1949 to now, China has undergone an astonishing change. The PRC pursued a closed-door and self-reliant development strategy in the first few decades. However in 1978 the PRC adopted an open-door policy and started to reintegrate with the global economy. In the past 20 years, all the nationalities throughout the country have supported Deng Xioaping's theory and made economic development the central task. Reform has been put forward on all aspects and a sustainable, rapid, and healthy development of the national economy has been promoted. However, Just as the former leader, Deng Xiaoping said, the economic construction in China is like "crossing the river while feeling the stones". The Chinese economy constantly faces economic problems and challenges while it obtains great economic achievements. The negative impacts will seriously influence the development of the Chinese economy especially if the PRC cannot solve them properly.This report will analyze the principle economic challenges faced by China and how these might be addressed in two sections. In the first section, the PRC's economic historical background will be introduced and also the astonishing progress that has been made during the past twenty years. Then this essay will display the enormous obstacles that the Chinese economy confronts and offers possible recommendations.ECONOMIC HISTORICAL BACKGROUND OF CHINAThe economic history of the People's Republic of China can be classified into two distinctive periods: Mao's China (1949-1978) and Deng's China (from 1979 to the present).During the period of Mao's rule, China experienced two violent political mass movements, The Great Leap and Cultural Revolution, which inflicted great suffering on the nation. There were few economic developments in these periods.Based on the need to make the Great Leap Forward, overnight fertile rice fields were plowed under and construction work began on steel foundries and tractor factories. Of course, the former farmers had no idea how to actually construct a working foundry or what to do with it once built. What was once fertile cropland sat wasted. Highly productive individual farms were abolished and replaced by a system of communes in which land was not owned by any single family but by a community. The result was that...

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