ipl-logo

Economic Reforms In China Essay

1321 Words6 Pages

Impact of economic reforms on Chinese urban and rural population
China’s economic reforms have brought about dramatic economic growth. According to Chow (2004), “the average rate of growth of real GDP in the first two decades of reform was about 9.6 percent annually.” However, the reforms have also contributed to an increase in inequality within China. This is supported by the estimates Wang (2008) drew from the World Bank which show that China ranks third in income inequality in the world in terms of the Gini index in the 1990s.
The economic reforms began at 1978, which saw a rise in private sectors. Prior to the reforms, more than 95% of the urban population work in state-owned enterprises (SOEs) and collective sectors (Wang, 2008). With …show more content…

Apart from being a large manufacturing hub, China is also a global manufacturer and exporter which has helped to drive its economy. Over the years, China has been exporting high-technology goods. Its electronic exports accounted for 30% of Asia’s total in that industry (Hale & Hale, 2003). At the end of 2010, China has surpassed Japan as the world’s second-biggest economy (Flanders, 2011). Being a dual hub (Hale & Hale, 2003), with high levels of exports and imports, involved in manufacturing and trade, China holds an essential position in the global supply …show more content…

By opening up its economy, America, Europe and Japan were able to shift their labour-intensive operations to China to take advantage of the large supply of labour pool and low labour costs (Tang & Parish, 2000). Given the large labour supply and the relevant infrastructure that are needed to support Apple’s operations, Apple has outsourced its operations to China (Rawson, 2012). Therefore, Apple’s products are designed in California but assembled in China. By liberalizing its economy, China has emerged to be one of the fast growing countries and may be a world leader in the

Show More
Related
1088 Words | 5 Pages

The Chinese civilization from 100 C.E. to 600 C.E. rose as one of the major unified empires. While this society grew, there were aspects of culture and politics stayed the same but many changes also occurred. As the empire developed, family units and social classes remained stagnant. Despite these continuities, changes such as the popularity of Buddhism within society due to Indian missionaries and a shift in political rule occurred. During the time period 100 C.E. to 600 C.E. the family unit system remained intact despite the intellectual advances.

Read More
1157 Words | 5 Pages

China is still needing major attention as it remains the most common country for production, shortly followed by India, Bangladesh, Vietnam and Thailand. b. What are some of areas of improvement in this year’s results? In this year’s results some of the areas of improvement include traceability (companies have published full supplier lists percents rising 10% (16% to 26%)), 67% of companies are making efforts to train suppliers, buyers and factory managers to understand human trafficking, child labour, and forced labour risks, 77% of companies are working to actively improve leverage and relationships with suppliers, through supplier consolidation and/or industry collaboration, 59% of companies are investing in paying fairer wages to workers, companies tracking the presence of trade unions and collective bargaining agreements in the majority of their factories

Read More
1539 Words | 7 Pages

The Chinese government began to deregulate managements and enterprises by giving them more autonomy and freedom and local government began seizing peasant land for commercial or industrial use after 1978. Prior to these reforms, the Chinese government was the biggest employer of its citizens, as its businesses were all state owned--employing 75 million people--and 400 million peasant worked on farms (Pai 4, 25). The result of Deng’s neoliberal policies, to create competition in the economy through privatization or deregulation, led to massive unemployment (Pai 25). In particular, the Ministry of Labor and Social Security, reported 21 million workers were laid off from 1994 to 2005 (25). Although when workers are laid off they are supposed to receive compensation, millions of workers either received no compensation due to corruption from top level officials or minimal compensation (600 yuan) for their services.

Read More
694 Words | 3 Pages

The causes and effects of the decline and fall of Han China during the classical era had similarities and differences when compared to the political, economic, and social causes and effects of the decline and fall of Rome during the Classical era. First of all, the political causes of China’s decline and fall centered mostly around corrupt government officials. Corrupt officials would not pay taxes which upset the peasants and in turn caused political unrest among the Chinese people. Similarly, Roman emperor Caligula didn’t care about the well-being of the Roman Empire and instead preferred spending his time partying and having orgies which bankrupted Rome and led to a raise in taxes. As a result of raised taxes political unrest began to spread throughout Rome.

Read More
946 Words | 4 Pages

In the Chinese province of Guangdong money has a lot of power, even over the most basic human rights such as a child’s education. Yuan Oifeng, a city planner stated “75% of the tax income belongs to the central government so what the local government gets is very limited” (Open University 2017) From this we understand that only 25% of the tax income belongs to the local government; thus, people travelling to work in that city do not qualify for any benefits. This is because the government is increasing tax revenue in order to pay off the debt it undertook in order to create such an economy in the city of Guangzhou. That enormous job opportunity attracts many migrants from the land nearby, because they are hired as cheap labour they cannot afford to live there permanently.

Read More
720 Words | 3 Pages

David Gewirtz is a contributor to ZDNet, and the author of Is Apple’s Suicide Factory Outsourcing to Even Cheaper Chinese Peasants? (Gewirtz). According to ZDNet, “He is featured in The History Channel special The President 's Book of Secrets, is one of America’s foremost cyber-security experts, and is a top expert on saving and creating jobs” (“David Gewirtz”). His article, written in 2010, depicts the harsh treatments that Chinese employees face in conjunction with Apple production. According to David Gewirtz, the situation is much worse than society has imagined (Gewirtz).

Read More
766 Words | 4 Pages

Large companies such as Walmart and H&M clothing, choose where to go for their products to be made cheap, fast, and quick. Outsourcing to countries like China and India is the number one trend with companies to save them money and time. Factory laborers make all types of commodities for the rest of the world and are paid only a dollar per day and are treated very poorly. Companies that hire factories ignore the safety issues involved in making products. As a result, factories cut corners to meet the demands of their employers and

Read More
1458 Words | 6 Pages

Apple is an example of a successful company that designs its products in the United States of America and outsources the manufacturing of its products throughout the globe including China. This is argument is further supported when we take a look at the ongoing labor abuse driven by low costs to produce and contacts that must be honored abroad including those countries with great power distance gap such as China. According to Flores

Read More
505 Words | 3 Pages

16.7 to 21.2 percent of products made in China are exported to the U.S. That is just China, there is still countries like Vietnam, Italy, Cambodia, etc. China shipped 35 billion USD worth of textiles and clothing to the US in 2007 increasing by about 16 percent from 2006. With us importing more goods than exporting this causes more jobs to be created

Read More
774 Words | 4 Pages

As the second largest world economic power, China has been a rather “competitive” opposition in the garnering of resources and investment of foreign industries, whether it resides within its own borders or on foreign soil – culturally, politically, and economically. In the age of modern globalization of the 21st century after being shaped of 19th century imperialism by the dominant world powers at the time, the migration and integration are one of many processes that make its mark on businesses, economics, resources and the environment at large. But should European countries and the United States be concerned about China’s interest in the African continent? Should we, the West, not try to seek an understanding of Chinese companies influencing

Read More
1890 Words | 8 Pages

These sources of inequality are inherent in China’s hukou system which restricts rural migrants from privileges enjoyed by urban residents in terms of social security such as retirement benefits, schooling, and housing (Joseph, 2014, p. 260-261). The addition to income from a university education compared to that of primary schooling has increased dramatically from 9% in 1988 to 39% in 1995 to 88% in 2002 (Gustafsson, Li and Sicular, 2008, p. 25). This means that levels of educational attainment highly influenced the income earning prospects and is a significant factor of income inequality in China. Indeed, gap in education contributes as much as 11% to China’s Gini coefficient (Gan 2013, p. 18). The exclusivity of access to education inherent in the hukou system therefore significantly contributes to the rising levels of inequality in

Read More
1404 Words | 6 Pages

First and foremost, one must acknowledge the plainly visible fact that the Chinese economy has grown exponentially since the process of integration into the global economic system began. China 's comparative advantages, particularly in the labor sector, has transformed it into the second largest recipient of FDI in the world.1 Over the course of the last 20 years, exports have grown approximately 17.1 percent per year.2 This ultimate result of this investment and trade has been an overall growth rate 8 percent per annum,3 which would have been completely unattainable without the country 's engagement in globalization. Foreign investments have

Read More
703 Words | 3 Pages

Bathroom remodeling is most likely the best ways of preparing a house on sale. After kitchen remodels, bathroom remodels are next in raising the sales value of your own home. Bathroom remodeling ideas must not be restricted to a house that 's to be sold, however. You can enjoy a bathroom remodel now, and understand that it will be a good edge when the time comes to sell the property. The home 's bathrooms are the rooms of heavy use.

Read More
2052 Words | 9 Pages

Nations engage in international trade because they benefit from doing so. The gains from trade arise because trade allows countries to specialise their production in a way that allocates all resources to their most productive use. Trade plays an important role in achieving this allocation because it frees each and every country’s residents from having to consume goods in the same time combination in which the domestic economy can produce them. During the past decade, China’s growing presence in Africa has increasingly become a topic for debate in the international system and among economists as well as policy analysts.

Read More
1873 Words | 8 Pages

Equality, like fairness, is an important value in most societies. Irrespective of ideology, culture, and religion, people care about inequality. Widening inequality also has significant implications for growth and macroeconomic stability, it can concentrate political and decision making power in the hands of a few, lead to a suboptimal use of human resources, cause investment-reducing political and economic instability, and raise crisis risk. The economic and social fallout from the global financial crisis and the resultant headwinds to global growth and employment have heightened the attention to rising income inequality.

Read More

More about Economic Reforms In China Essay

Related Topics

Open Document