Sudden Decline of China - 798 Words

SUDDEN DECLINE OF CHINA ´S GROWTH After Second World War, the communist party started the installation of a planned economy in China, led by Mao Zedong. In order to transform rapidly the country from an agrarian economy to a communist society through fast industrialization and collectivization of the lands, the communist party led an economical and social campaign from 1958 to 1961 called the Great Leap Forward. The collectivization and prohibition of private farming led to The Great Chinese Famine which killed more than thirty million Chinese from starvation, but also from persecution of the party against those who weren ´t abiding by the rules and also 1 to 3 million people committed suicide. The Great Leap Forward has met economic†¦show more content†¦At the end of this first stage most of industries still remained state-owned. The second stage happened in the late 80 ´s and the early 90 ´s, Xiaoping continued policies beyond the initial reforms. The government control over businesses decreased more and more and some small scale privatization of state enterprises becoming unviable started to happen. Internally, the government power was decentralized to local leader, left free to experience newer way to stimulate economic growth and take in charge the privatization of the state sector. In 1989, Xiaoping opened the Shanghai Stock Exchange again 40 years after Mao ´s shut down. After 1992, the privatization of the state owned industries took a faster pace and the private sector surpassed the public one in terms of GPD. The private sector which was considered as a â€Å"complement† is now considered as an â€Å"important component† of the Socialist Market Economy. The country is liberalized with important decrease of protectionist policies, regulations and the lifting of price controls. State owned monopolies in sectors such as banking and petroleum remained. Although the economy grew quickly during this period, the country has been experiencing many losses because of an inefficient state owned sector that had to be compensated with state revenues. Corruption and inflation led to discontents and the pressure of conservative elder prevented from major reforms that wouldShow MoreRelatedAmericas Oh Sh*T Moment by Niall Ferguson Essay1097 Words   |  5 Pagesis at risk for an imminent collapse, and how they can stop it. He proves this sudden collapsing of a civilization by giving many examples of civilizations that have collapsed in the past, such as, Machu Picchu; the lost city of the Incas, the Roman Empire, Ming Dynasty’s rule in China, the Soviet Union, North Africa and the Middle East. All civilizations share similar characteristics that eventually led to their sudden downfall. For example, they all once had strong social systems supporting theirRead More2. Should China Revalue the Yuan Against the Dollar? If so, What Impact May This Have on (1) Us Balance of Payments, (2) Chinese Balance of Payments, (3) Relative Competitiveness of Mexico and Thailand, (4) Firms Such687 Words   |  3 PagesShould China revalue the yuan against the dollar? If so, what impact may this have on (1) US balance of payments, (2) Chinese balance of payments, (3) relative competitiveness of Mexico and Thailand, (4) firms such as Wal-Mart, and (5) US and Chinese retail consumers? China, the largest growing market in the world, currently has a policy regarding monetary regulation that allows the Yuan to â€Å"float†. This has seen the Yuan appreciate by approximately 24% over the past few years. Today, the exchangeRead MoreThe Legal Tender Of The People s Republic Of China810 Words   |  4 Pagesis the legal tender of the People’s Republic of China. The trade of RMB is booming internationally. It is now the ninth most traded currency in the world account for 2.2% of total foreign exchange turnover. In 2004, Hong Kong residents are allowed to deposit Renminbi into their bank account up to 20000 yuan per day (2100 pounds). In 2007, the first Renminbi denominated bond is issued in Hong Kong, called the dim sum bond. In the end of 2008, China allowed the trade using RMB between ASEAN countriesRead MoreAn Intrusion Of American Elements1508 Words   |  7 Pagesgiveaway–differentiation of Chinese media and entertainment production becomes t he simplest, making denying Chinese contemporary culture the most accessible way of â€Å"protesting†. First and foremost, the refusal of the Chinese media productions will prevent China from becoming a cultural imperialist in Vietnam. The concept of cultural imperialism is vague as best; but as Schiller (1976) laid out, â€Å"the concept of cultural imperialism today best describes the sum of the processes by which a society is broughtRead MoreThe Cyber Defenses Of The United States887 Words   |  4 Pagesquoted as saying â€Å"There are two kinds of big companies in the United States. There are those who ve been hacked by the Chinese and those who don t know they ve been hacked by the Chinese† (Comey). Comey can also be quoted as having said that, â€Å"China was seeking to obtain information that s useful to them so they don t have to invent (Comey). This stolen information can be used against these companies when brokering a trade deal or even Chinese companies could begin manufacturing American goodsRead MoreEssay on How Do War and Conflict Affect the Population of a C ountry?933 Words   |  4 Pagesimpacted by wars that happened years ago. Because of a war the upsurge of death rates and post-war birth rates sky-rocket or as we know as â€Å"baby boom†. Because of the sudden rise of population there was an unbalanced collapse in the economy, which resulted in high demand of food, water, shelter causing the environment to decline causing poverty. Increase of population means there will be more competition for education, which impacts the economy which leads to poverty. Also food, water, land spaceRead MoreProblems Faced By The European Economy1191 Words   |  5 PagesAt some point a developing country with a growing economy starts to experience a decline. The reasons for it are uncertain. This statement applies to many places in the world. As an example, Russia is currently experiencing major economic decline because of one even that had happened a few years ago. On the other side of the world, Africa, with it’s raised hopes starts to experience a rapid decline in its economy too. Africa’s challenges were not created because of an event, there simply isn’t enoughRead MoreHow Far Do You Agree That the Qing Dynas ty Fell Mainly Because of the Humiliation of China at the Hands of Foreigners?1510 Words   |  7 PagesHow far do you agree that the Qing Dynasty fell mainly because of the humiliation of China at the hands of foreigners? The Qing Dynasty fell apart in the 19th after flourishing throughout the 18th century. Like many complicated systems, it grew brittle and inflexible. It could not adjust as new problems arose. Bad harvests, warfare, rebellions, overpopulation, economic disasters, and foreign imperialism contributed to the dynasty’s collapse. The qing rulers were themselves foreign as they wereRead MoreChina s Lost Girls Culture Shock1480 Words   |  6 Pageswhen they come in contact with a fundamentally different culture and no longer depend on their taken-for-granted assumptions about life. The main idea of this film was to document the adoption process and show how terrible life can be for girls in China. It highlighted how amazing it can be when a child is adopted into a better life. However, it does not show the downsides that could occur due to this process. One of those downsides is potential culture shock. Despite the children usually being veryRead MoreA Summary On The Role Of Fracki ng801 Words   |  4 Pagesprices. Over many decades oil has supplied the global market with a realatively inexpensive method to provide energy and countless products. Without oil the world would not be as well developed as it is today. Large countries such as the USA and China thrive off oil and without it would come to abrubt halt. [1] Saudi Arabia is in possession of vast quantities of crude oil, currently larger than the US. [2] Due to the ease of access for Saudi Arabia to extract their oil, they have much lower production