China Economy Essay

Submitted By yinfei0320
Words: 732
Pages: 3

China Economy At the beginning of development of China, China economy is going to decline in proportion of world economy. 200 years ago, at heyday of the Qing empire period (1800), China's products occupied 33% of the global total, Europe, the United States only occupied 28% 0.8%; 100 years ago, in the end of the Qing dynasty (1900), China occupied 6.2% of the total global production; Through the Second World War, Civil War, at the beginning of 1955, GDP of China occupied 4.7% of the amount GDP of the world; In 1997, GDP of China occupied 3.5% of global GDP. GDP percentage for the proportion of the world does not increase but decrease. However, in the modern, China economy rapidly rises. During a long-term economic potential investment, it makes a strengthen foundation of China's economic growth. China's energy, transportation, communications and other fields of infrastructure are improving rapidly. In the world economy BBS's global competitiveness index rankings, China has led ahead of Brazil, India and Russia. However, there also exist many malpractices of China economy. The very first malpractice is problem between urban and rural area. In the early reform and opening period, the income gap between urban and rural areas even the income gap amount the eastern area, central area and western area decrease gradually. But since 1985, this trend runs up to now, China's GINI coefficient is beyond the international warning line of 0.45, the gap between rich and poor becomes one of the social problems that urgently need to be solved. Too much disparity between rich and poor will make low-income people have imbalance mental state. In addition, current education system, medical treatment, health career, and social security system development of China is relatively lagging, easily causing contradictions, and affecting social harmony and stability.

The Second malpractice is problem between resources and environment. In the rapid development of China's economy, it consumes a lot of energy and resources. In 2006, China's GDP occupied only 5.5% of the amount of world, but it consumes 9% of the world's oil, 23% alumina, 28% of the steel, 38% of the coal and 48% of cement. It is limited of the amount of natural resources, and if it keeps the current resource consumption level and the growth pattern of China, it will affect other countries of the world and future generations. At the same time, it also makes the cost of resources excessively by increasing price of resources. It is against with the scientific concept of development strategy. We also cannot ignore the environment problem which caused by the rapid economic development. In recent years, it happened much more flood and mine disaster frequently in the domestic, which related the deterioration of the environment. In the 90s, China has three big floods. Natural disasters is usually a fatal attack on economic, so protecting the environment will be an important way to prevent disasters.

The third malpractice is excessive investment. During 2007, the central bank has raised deposit reserve rate for