Top Trade Leads

In 1976, Mao Zedong died and China’s isolation ended.  Its next person in charge, Deng Xiaoping, opened the gates of China for overseas investments and businesses that made China an economic powerhouse.

The collective ideals that Mao started have banned businesses in the country but Deng have turned China from a communist agrarian system of economy into capitalism. 

China is now the leading manufacturer and exporter of products in the world market.  Various companies from the United States and Europe subcontract their labour force in China particularly due to the low labour costs. 

Over the last ten years, the transformation of China has become proof to its elaborate form of economy.  This year’s forecast in China’s economy looks forward to a 7-9 percent growth in GDP.

The Chinese are also renowned for their business aptitude.  In countries that have a considerable populace of Chinese, a lot of them make their living by entrepreneurship and most of their businesses are stories of accomplishment.

In spite of the optimistic views on China’s economic growth, a lot of finance experts still see plenty of obstacles that could halt its advancement or even cause its economic demise. 

Economic imbalance is one of these factors.  One of which is the inner-city and rural areas’ uneven development.  Even though the quality of life for people living in urban areas have somewhat improved, a lot of China’s rural population still experience hardships particularly within the housing and agricultural sectors.

This is to some extent reminiscent to “The Great Leap Forward” where the chairman ordered farmers to become steel workers that resulted to China’s starvation.  Today’s China, however, have learned from earlier errors and is somewhat mindful to its food production but it still has a long way to go before it can attain perfect balance.

The political climate in China can also be a possible obstruction.  So far, every dissent in the country has been suppressed with no mercy in its mainland and other places they allege to be theirs such as Tibet. 

China is also poised to keep Tibet under an iron grip and their way of doing this is by building infrastructures, encouraging Chinese from the mainland to migrate, and crushing oppositions.

Other areas in China like the region of Xinjiang, where there is a large inhabitants of Muslim Uighurs, is also experiencing both economic and political volatility because of unrest. 

The most serious of all potential causes for China’s development is climate change.  China has now completely overtook the US in carbon emissions and pollution.  The costs could not only upset China, but also the other countries.  The irreversible effects of climate change will bring about rising sea levels will certainly cause problems in China’s south, and could even melt glaciers from China’s western part and the Tibetan region which will flood towns and cities and also cause a water shortage since these glaciers are an important water source for numerous streams and lakes.