CHINA'S ECONOMY

China's Economy

China's Economy

Background

Macro economics of China is changing variably. Factories are producing all goods including electronic appliances. China has got three sectors for economy such as rural and peasant economy, low-technology with cheap labour economy and information based sector. Each sector deals with specific laws.

Quantitative Analysis

China's currency is yuan. The success of China is totally dependent on the low and cheap labour, who picked by number of multinational companies. China has very hard working labor, making China an economical, stable country. Things, which are less than 8%, are considered unstable in China, according to the economists (Peter, 1999). There is a huge rise of China, in the history, if we see China raised as a poor country to a huge economic power within 28 years (C. K., & Labonte, 2007). Economic reforms were introduced in 1979, China's real gross domestic product (GDP) was at the rate of 9.7% annually, considered as an average. The real per capita (GDP) has grown to 8 fold. It also affects the world ranking, as it rose from 27th to the 3rd. There are also some other measurements, which showed that China has already become the world's second largest economy of the world.

Main Economic Challenges

Economic system also affected by the under production of the products and the over production of the products (Pan et al, 1999). Another reason may be the introduction of the machinery, which brings unemployment for many workers and, China is also facing certain flaws due to its capitalism. There are adverse affects due to this capitalism when the rich tends at the top, and the poor is at the bottom. The free movements of the people who migrate in order to get jobs influence the economies. However, there are some political issues which try to prevent the emigration of these ...