All Roads lead to China and its economy

All roadstead lead to china and its economy The article All Roads lead to mainland china dated 5th December 2009 in The Star Bizweek focuses on Chinas rise as an economic powerhouse, with the stage set to become the largest economy of the world. Continuous rapid economic development public treasury date has placed China right at the heels of United States and Japan. After a market-orientated reform curriculum in 1970s, China turned into the centre of attraction for foreign investments from all over the world. The nations importance in the global economy is evident with its political relation policies and local companies actions being closely monitored. The staggering population in China of 1.3 billion provides an attractive customer base besides serving as a bald-faced labour force. In line with a boom in the manufacturing sector, Chinas demand for raw materials also propels correspondingly. This has non only transformed the way in which commodities are traded, but also led Ch ina to cocker in the acquisition of foreign assets and the formation of alliances with resource-rich countries. Despite of downbeats ranging from the low-spirited quality of goods produced to the accusation and allegation aimed towards China, the China economy is til now going strong with corporations envisioning to compete against other established international players. The inception of the market-orientated reform programme in 1970s do clearly seems to be a masterful choke which has resulted in China enjoying rapid yet encouraging economic developments over the years. In addition, with a such(prenominal) improved and predict fitted legal system in practice, the republic seems to confuse strummed the right note in the global economy game, with investments pouring in from different parts of the world. It is indeed amazing to think how the China economy has managed to emerge as one of the dominant force in such short conviction span. With such thriving potential and capacity of the China economy, no wonder it is by no vaunt to claim that any business considering itself to be a global player has to enter the China market, as stated in the article. The major advantage that China enjoys and has successfully utilized over the years is the Brobdingnagian population which provides a sordid, appealing labour force for industries, particularly the manufacturing sector. though China is not up to(p) to match with tech-savvy nations such Japan, they have unders besidesd the population advantage which they gain over other countries and and then embark on a labour-intensive-centered economy development. On top of that, a competitive surrounding too serves as a catalyst in Chinas economic development. Low wage may seem to be a fair reason to explain Chinas combat, but Kwan (2002) pointed out that the productivity of Chinese workers also has to be taken into account as a factor in Chinas competitiveness. He explains that though China pays low wage for their wor kers like how Bangladesh and Somalia pay their respective workers, the relatively high productivity of Chinese workers has placed their competitiveness on par with United States. This indicates why till date, at that place has yet to be any countries able to match up with the cost advantage of companies based or branched in China. Amidst of the advantage discussed above, at that place are several setbacks occurring concurrently with Chinas economic progress. The first revolves around Chinas very own legal system. Though Chinas legal system has been more consistent and predictable with businesses enjoying a smoother entrance into the republics market, it still has its flaws and could still prove to be an obstacle for companies venturing into China. Recently, BBC (2010) reported a conflict between Google and the Chinese regimen with the agent threatening to pull out of the nation due to cyber attacks and tight surveillance by the Chinese government to limit freedom of speech in th e internet. With China continuously imposing tight regulatory and censoring rules over the internet while Google holding firm to its stand of prioritizing moral concerns onward of businesses, the conflict has demo that Chinas restricted openness will to certain(p) extent hold back the republics potential to expand its economy. Additionally, there is also the factor of quality that China has to seriously look into. The recent years have axiom Chinas exports raising safety concerns all around the world. The people worldwide are basically getting cheap goods at the expense of their health and safety. At the same time, the reliability and durability of China-made products have also brocaded concerns and dissatisfactions from the outside world. From toothpaste to pet food to toys recalled over the years, the quality control in China seemingly to have deteriorated from bad to worse. Of all the quality flops, the most serious case saw tens of thousands hospitalized due to melamine-cont aminated dairy products. The filth not only tarnished the nations image, but it has also puts Chinas credibility and ethical responsibility into question.Moving on, Chinas domination in the global economy will soon be severely tested with the issue of inflation rise up in line with the prosperous developments. According to Peoples Daily Online (2010), experts have been predicting inflation in 2010 and the challenge lies ahead for Chinas economy to prevent inflation and to control the inflationary expectations. With increased demand for commodities due to rising phthisis power, inflation do seem inevitable for China and it would be interesting to see how the Chinese government will deal with this upcoming obstacle.Although Chinas economy has progressed immensely for the past 30 years, there are certain areas that still can be further improved to allow further expansion of the promising market. In the legal matters prospect, China could have given its legal system a thorough review to stretch its doors to companies such as Google to encourage more potential investments. On the other hand, China can portion out to the problem of low quality goods by tightening the quality control regulation to regain consumers self-confidence towards China-made products. If the relevant problems have been attended and rectified accordingly, it is only a matter of time before China replaces United States at the top of the rankings.ReferencesBBC (2010) Google may pull out of China after Gmail cyber attack Online, lendable http//news.bbc.co.uk/2/hi/8455712.stm accessed 11 January 2010Kwan, C.H. (2002) The Myth of China Competitiveness, Online, addressable http//www.rieti.go.jp/en/miyakodayori/047.html accessed 11 January 2010Peoples Daily Online (2010) Experts Preventing inflation is the biggest challenges for Chinas economy in 2010 Online, Available http//english.people.com.cn/90001/90778/90862/6871595.html accessed 11 January 2010BibliographyICIS.com (2007) China product q uality under spotlight Online, Available http//www.icis.com/Articles/2007/08/06/9049799/china-product-quality-under-spotlight.html accessed 11 January 2010