Facilitator:
The Rise of China as an Economic Superpower since The 1970s
Most nations in the Middle East acknowledge the authority of America in the control world’s economy; however, China assumes a different stand (Yee, 1997). The lucrative Chinese economy stands out as one that believes in conquering the world and becoming one of the best hubs economically. The rise of China to greatness economically is a story of both creativity and optimism. The first step by the economy was beating Japan took control the middle ease economy before the attention of the country shifted to the rest of the world. In the minds of many people, the Chinese journey to the top does not linger clearly. This paper analyses the journey and steps that china has taken to become an economic superpower from the 1970s to date.
Sullivan (2008) states that, the Chinese development after 1976 greatly derives roots from the neoliberal development strategy. After the death of Mao in 1976 and the successful end of power struggle in the country, the Chinese bureaucrats adopted the neoliberal development strategy, which became imperative to the economic functions of the state. Deng Xiaoping adopted the popular “Four Modernisations” that saw the Chinese economy develop into four major sectors, rendering the economic powers of the state well spread. The state sector undertook reforms that involved the whole sector, the private sector dealt with the private investors, the private market in agriculture and industry, and the Chinese military formed the other two sectors (Sullivan, 2008). The plan by the economic leaders proved massive as tools came into place in preparation for any benefits, which the economists foresaw.
The boom in the 1980s provided the second milestone for the rise of the Chinese economy. In the late 1970s, factories developed in and around Shenzhen and other parts of the country in anticipation of a shift in economic balance, which would tilt the economy towards the industrial prowess. The Chinese government had the best timing as it too less than a decade for the plans to become real. However, the boom came with imbalances as the inflation rates increased hence panic buying among some people. However, contrary to many, Deng called for speedy reforms in the economy, which saw the inflation rates go down and prices stabilize eventually.
The growth of Shanghai played a major role in the economic development and prowess of the Chinese economy in the 1990s. After the economic boom, China had the light and development was imminent (Yee, 1997). In 1992, shanghai became the centre of construction development, with the construction companies giving the government substantial revenue. However, this was not the peak of development in the Chinese capital. A rush of investments from other parts like Taiwan, and Hong Kong made the city a hub of construction, strengthening the construction industry in the country. Several powers including the European Union and America laid sanctions on the country although the government continued to develop the economy (Friedman, 2007).
The economic balance in the Chinese sectors provided the best chance for the country to advance economically. According to Friedman (2007), the Chinese government emphasized strategies that targeted developing all the sectors in the economy, and outdo the American dominance. Labour supply in the economy was limitless, spelling out exactly why the government fearlessly undertook the grand projects. The Chinese companies quickly transformed to multinationals, as they could no longer restrict to the constricted population. Foreign trade in the 2000s, especially with the Asian and the African countries killed off the competition from them. Japan was down and the new target remains the United States of America.
The industrial sector in china is one of the best in the world. The industry took the challenge and chance of the booming Chinese economy to undertake internal transformation. High technology facilities came up in the industry reacting to the demand for the industrial goods. The technology industry laid the last milestone to the greatness of the Chinese economy. Dell Company made the Chinese economy a real great centre. The with almost all the computers from the dell company made in china, the Chinese economy enjoys high level incentives on their output as they get some portion of the sales. Rolex watches and other electronic valuables come from the country (Yee, 1997). The electronic sector does the best stuff for the actualization of the country’s development plans.
Concisely, the period between 1976 to date has played a major role in the rise of china as one of the economic superpowers in the world. The death of Mao and the ascension of Deng Xiaoping to leadership in the Chinese government proved the first great step for the economy. The introduction of the “Four Modernizations” in the economy made the first step to the development of the Chinese economic situation. After the economic boom, some of the rivals to the country saw its fall due to the mushrooming inflation but the country undertook even better reforms after the period. However, the great economic success of the country has presently set up the economy for inflation, raising the cost of living for the local people.
References
Kynge, J. (2002, Jan 03). China's burden: The country's entry to the world trade organisation may at last transform its economic status. but political reforms are vital if it is to become a global superpower, writes James Kynge: Financial Times. Retrieved from http://search.proquest.com/docview/249273611?accountid=45049
Friedman, E. (2007). China's return to global glory. Global Dialogue, 9(1), 1-9. Retrieved from http://search.proquest.com/docview/211504013?accountid=45049
Sullivan, R. (2008, Jul 07). Witness to an emerging superpower. Financial Times. Retrieved from http://search.proquest.com/docview/250112065?accountid=45049
Yee, L. (1997, Feb 17). Matter of time before china becomes a superpower. Business Times. Retrieved from http://search.proquest.com/docview/266783641?accountid=45049
