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China's Global Economy

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BMGT 110
China’s Global Economy
Anthony Fleury

Xinhua reported that Beijing recorded 80% blue sky days in the first quarter of 2009. The concept that there is a blue sky day is unusual for most of the world, but it represents the price that China has paid for its rapid economic growth trajectory. As cities sprout from villages and a labor force in the hundreds of millions is mobilized, China has experienced a double-digit GDP growth for much of the past thirty years. This growth however is under threat from several sources. The environmental consequences of growth are just one threat. China also faces chronic resource shortages – its industry does not want for coal but the Chinese people do struggle for things such as shortages of oil, food and clean water. The PRC also faces political tests as well, including Taiwan, Tibet and Xinjiang. Political tensions with the former could destabilize all of Asia if not the world. The tensions in the western part of China represent the social unrest that the Communist government’s march towards wealth has created. Even amongst Han, there is considerable disparity of wealth between regions and classes, and these disparities may very well threaten China’s future. This paper will analyze each of these critical issues in turn, and then synthesize the issues into an assessment for the future of China’s economic growth. All economies depend on resources for their growth. Output is determined by the availability of labor, energy and raw materials. The former has not experienced overall shortage, although there are concerns about the rural labor force in some areas. China is, however, facing critical shortages of both energy and raw materials, not to mention food and clean water. China is facing a shortage of mineral resources. The nation is expected to suffer a severe shortage of such resources in the next…...

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