Economic Development under Chinese Flag
China is one of the oldest civilizations in the world and is also the most populous country with a population of over 1.4 billion people. Over the last 40 years, China has experienced tremendous economic growth, becoming a global superpower and laying the foundation for its future success. To truly understand the importance of the Chinese economy, Bloomberg conducted an exclusive We Traveled Across China trip to observe and record the development of the economy first hand.
China is an emerging market with a rapidly growing population, and a booming economy, particularly in the cities. The GDP of China has grown at an average of 7.6% since 2004, and a staggering 6.7% in 2017 alone. This is in sharp contrast to the world GDP growth rate which for most of the last decade has hovered around 3%. As a result, Chinese economic ripples have a major effect on the world economy.
Bloomberg’s journey focused on four key areas: the economy, infrastructure, investment, and innovation. Our findings show that the government of China has truly transformed the country from a poor, rural backwater into a major economic power in the world. In regards to infrastructure, the Chinese government has put in an immense amount of effort to modernize the country. Extensive investment in high-speed rail, power, and telecommunications are just some of the visible results of the Chinese government’s policy.
The government has also been a major investor in the Chinese economy. Investment into the private sector and technology from the government totaled nearly 6 trillion Yuan in 2017, with more investment slated in the future. This investment has laid the groundwork for China’s rise to prominence in technology. From the new age payment system AliPay, to the energy giant Huawei, China is no longer a follower when it comes to technology.
Innovation has also been a key aspect of the Chinese resurgence. With the help of the government, hundreds of millions of dollars have been put into R&D, looking for the latest breakthroughs in science and technology. Chinese universities, in cooperation with the government, are also leading the charge in innovation. Tsinghua, a major university in Beijing, for example, has seen its research output increase exponentially over the last decade.
Attracting Foreign Investment
One of the key goals of the Chinese government is to attract foreign investment. The expenditure in infrastructure and modernization has had a great effect on this front, as the Chinese markets are now viewed as prime investments for global corporations. The Shanghai and Shenzhen Stock Exchanges now boast some of the largest companies in the world, many of which have foreign investment into China.
Foreign investment in China is not just limited to the stock market. Multinational corporations, such as Apple, have invested heavily into the Chinese markets, creating hundreds of thousands of jobs in return. This investment has had an immense effect on the economy, creating billions of Yuan in taxes, and helping to bring about further growth and stability for the Chinese economy.
Chinese officials have also courted foreign investment through a variety of tax breaks and incentives. By providing foreign companies with assistance in transportation, labor, and other costs, Chinese firms have been able to attract foreign investors in droves. In addition, the Chinese government has created various development zones, which are tailored to attract and sustain foreign investment.
Urbanization and Sustainable Development
Another major focus of the Chinese government has been to increase urbanization, with a particular focus on sustainable development. The goal of the Chinese government is to create efficient cities that are low-cost and focused on quality of life. Large-scale residential blocks are being built with the help of foreign capital and technology, while smaller projects are being undertaken to promote green building practices and sustainability.
The Chinese government has also invested heavily in public infrastructure, such as public transportation, to make cities more livable. The government has thrown its support behind bicycle-sharing programs, electric-vehicle charging stations, and the development of green-energy markets. These reforms have improved the quality of life for residents, while providing more efficiency and sustainability for the country.
Promoting Innovative Technologies
China has also been promoting new and emerging technologies to help boost its economic development. The Chinese government has invested heavily in programs to promote research and development in such fields as artificial intelligence, blockchain, and virtual reality.
These investments have been met with overwhelming success, as the Chinese tech sector has grown into a giant, producing products and services that compete with the best in the world. Companies like Tencent, Alibaba, and Baidu have become household names, and the Chinese government has attracted and sustained these successes by investing in research and development in innovative technology.
Crime and Corruption Issues
Despite the many positives that have come out of China’s economic development, there are still many pressing issues. One of the major issues in this regard is the issue of corruption and crime. While the government has cracked down on crime, there is still a rampant culture of corruption and lawlessness.
The Chinese government has gone to great lengths to tackle corruption, even setting up anti-corruption bodies such as the Central Commission for Discipline Inspection. However, this has not been enough to completely eliminate the problem. The issue is exacerbated by high inequality in the country, with many people not having access to basic needs such as education and healthcare.
Environmental Issues
The other major issue related to Chinese economic development that needs to be addressed is the issue of the environment. Over the past decade, China’s industrial production has skyrocketed, causing severe air and water pollution. The Chinese government has taken some steps to reduce emissions, such as introducing subsidies for green energy and reducing factory emissions.
However, the environmental impact of China’s industrial production is far from being adequately addressed. The government needs to take further steps such as increasing the number of trees, or investing in renewable energy, to ensure that China’s environment is sustainable in the long-term.
Conclusion and Summary
In conclusion, it can be seen that the Chinese economy has seen tremendous growth and modernization over the past few decades. From investment to infrastructure to innovation, the Chinese government has been instrumental in driving growth and economic development in the country.
At the same time, there are still major issues that need to be addressed, such as corruption and the environment. The Chinese government has made some steps towards addressing these issues, but further action is required to ensure sustainable and equitable development in the coming years.
