Critical Analysis Of China s Economy Essay - 2267 Words

Name: Course: Tutor: Date: Critical Analysis of China’s Economy Abstract The economy of China has been on the rise at a rapid rate for more than three decades. Most of this growth higher productivity of labor highly contributed to this economic growth. On the contrary, as the economy widens, rate of employment diminishes along with a steady increase of the youth population. This paper focuses on understanding the efforts that led to the growth as well as the setbacks that China might encounter over the coming years. The challenge would be to maintain its rapid leap of economic growth. Key questions consist ofhow China will sustain its investments; whether these investments will lose productivity as the labor - capital ratio keeps on rising, whether employment rates will sustain urban migration.In the bottom line scenario, growth of the economy falls steadilyat a rate of six and a half percent by the year 2030 from the current ten percent (Chowand Kui-Wai 146). History of China’s Economic Presentation China led the global technological and fields in the â€Å"industrialization era†. It is believed that China’s economy made its peak in the Song Dynasty. In this era, China had the supreme technologies (Needham and Ronan 143), the utmost rate of urbanization, the largest iron production and ultimately the leadingstate economy globally (Carsten 146). However, between 1500 and 1800, Western Europe took the lead from China. 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