China has long been hailed as the next rising superpower in the world economy. With such a large population and a booming business in cheap exports, there is no question that the Chinese will be an economic force to be reckoned with in the future. However, China’s sudden and explosive rise into economic power did not come without its problems. Economic growth in China is valued above nearly all else in the country today, and as a result, the country is facing severe economic and environmental consequences.
With the increase in lending in China comes the increase in business. Because China is still corrupt, particularly outside of the major cities, businesses that spring up are unlikely to be formed ethically or legally (Bradsher, 2013). Many of the new companies in China are production-based or manufacturing-based companies, so there are additional problems that stem from this type of company as well (Bradsher, 2013).
Manufacturing in China has reached an all-time high, and with this increase in manufacturing has come a severe decrease in the environmental state in China proper (Brubaker, 2012). Air quality has decreased to the point where it is dangerous to breathe in many places, and the amount of long-term illnesses that are caused by environmental factors cost the government millions, if not billions of American dollars each year (Brubaker, 2012). According to Brubaker (2012), the cost of environmental degradation in China due to manufacturing was three percent of the country’s gross domestic product in 2010-- that is nearly two hundred and fifty billion American dollars.
The cost to the environment from China’s increase in manufacturing is not just quantifiable in terms of dollars, however. The rate at which the Chinese economy is growing is unsustainable in the long term; however, Chinese officials seem unwilling to accept that, at some point, the incredible growth that China has shown over the past twenty years will have to slow (Brubaker, 2012). Instead of accepting this as reality, officials look the other way while companies so unethical and illegal things to cut costs-- such as using lead paint in toys, or contaminating baby formula with dangerous chemicals (Pei, 2013).
In addition, China has been encouraging massive amounts of growth in the housing sector, leading to what have come to be termed China’s “ghost cities”-- massive state-of-the-art cities where people do not live (Chang, 2013). If China wishes to continue its growth in the long run, it must accept that it cannot continue to artificially inflate the numbers that it presents to the world as the numbers for growth. Financial institutions and experts have recognized the deception, and as a result, are seeing the dangers in investing in an economy where farce and number manipulation are so prevalent. This is especially the case since the financial crisis in America: people are much more unwilling to take financial risks that could topple the metaphorical “house of cards” in a delicate economic environment like China’s.
Although the issue of economics and the environment in China is complex, the future looks bleak for the Chinese unless the Chinese government seriously rethinks its policies on environmental issues and economic growth in the long run. Similarly, governmental policies on corruption must be enforced much more stringently if China is to continue to advance.
References
Bradsher, K. (2013). China’s Economy Unexpectedly Stumbles Again. The New York Times, May 8.
Brubaker, R. (2012). China and sustainability: connecting the dots between economy and ecology.The Guardian, September 10.
Chang, G. (2013). The Biggest Threat To China's Economy. Forbes, April 14.
Gerth, K. (2011). Can China Save the World, Twice?. The Daily Beast, January 1.
Pei, M. (2013). China's environment: An economic death sentence. CNN, January 28.
Reuters (2013). China economic growth lower than forecast. Al Jezeera, April 15.
Wong, E. (2013). Cost of Environmental Damage in China Growing Rapidly Amid Industrialization.The New York Times, March 19.
