China's Economic Development: Growth and Challenges

• The article examines China's economic development over the past 30 years, during which it eliminated absolute poverty and reached a middle level of development.
• China has surpassed countries like South Africa and Brazil by leveraging market institutions, global market access, and high savings rates.
• Rapid changes have caused social inequality, environmental issues, and debt.
• China plans to become a developed country by 2035 and reach the level of South and Eastern Europe.
• Terms characterizing main points: economic growth, inequality, average development level.

Introduction

• China's economic development has garnered interest, with a focus on internal decisions regarding economic institutions.
• External factors, like raw material imports and access to technology for manufacturing were crucial for China's growth.
• The welfare of Chinese families rose from $1,700 (2017) to $18,000 by 2022.
• Explanations of China's success include central planning, cheap labor, large investments, and the development of open institutions.
• A Chinese citizen born in 1980 experienced poverty in childhood, then saw per capita GDP rise from $2,980 in 1998 to $8,840 in 2010 alongside Brazil's economic gains.
• China moved from the 6th to the 3rd cluster in global economic rankings.

Reform and Opening-up Policy

• China's reform and opening-up policy started in the late 1970s and faced resistance due to its socialist ideology.
• Institutions help societies survive by uniting individuals and unintendedly create new activity.
• Institutions symbolize identity and social status.
• China's socialist ideology shifted, and leaders embraced institutional change by including scientists in policymaking and reforming the legal system.
• Deng Xiaoping changed the economic plan.
• By December 1978, China focused on economic reforms, having dealt with struggles that failed to improve society.
• Reform period started in 1992 because Russia's shift reduced concerns about straying from Marxism.
• China adapted to market reforms with success because of luck, determination and vision.

China's Rapid Growth

• China experienced dramatic economic growth from 1992 to 2022, achieving rapid progress compared to other countries.
• China rapidly passed numerous phases, as growth was influenced by the Secretary-General's acts and the CPC.

Factors Contributing to China's Success

• Economic reforms that liberalized agriculture.
• Integration w/ global markets.
• Investment strategies.
• The 1990s liberalization led to the expansion of China's manufacturing sector, starting from a low production base and addressing poverty from strict regulations.
• Hybrid solutions focused on using available resources, removing institutional barriers, and promoting socialism with Chinese characteristics.
• China focused on exports and the creation of special economic zones.
• High competition lead to competition and affordable wares.
• China's 1992-2007 was marked by an improvement from 6 to 4, a transformation caused by agricultural liberalization, trade possibilities, and investment strategies.
• By 2007, China aligned with lower-income economies, enhancing energy consumption and wealth, including better infrastructure, between 2007 and 2013.
• 2012 tasks involved birth management limits and lower rates; economy is becoming more advanced, and new norms are appearing.

Current Economic Status

• In the period of 2012-2023, China functioned within the 3rd cluster, obtaining $18,000 in PPP dollars in 2017 despite financial crisis, global chaos, the COVID-19 pandemic, and geopolitical tensions.
• It is capable of knowledge and innovation.
• "China’s economy includes the market for commodities, the cultural heritage of the nation, increasing awareness, high moral standard and principles."

Chinese Norm

• It is advised to refrain from anticipating China meeting Western standards and to recognize that a nation resolving major development issues formulates its norms and approaches top nations in its parameters
• China’s achievement is due to a mixture of a great commercial freedom and centralized influence".
• China's economic rise has happened due to quantity, level of quality and reasonable cost with post-1978 and 1992-onward reforms.

Economic Parameter Analysis

• China's economy transitioned from the 6th to the 4th economic cluster in a short period of 15 years.
• In 2007, China moved into the 4th economic cluster, outperforming India and Vietnam.
• The currency had a very poor exchange rate, and clean exports reached a quarter of a trillion dollars, and auto output topped nine million.
• Consistent with the rise in China's accumulation levels, the share of agriculture is now 9% of the country's GDP as of 2003, with consistent further drops year after year.

Socioeconomic Factors

• Chinese military and R&D have risen and military and innovation spending are now almost equally high.
• China's power use from 2000 to 2022 rose from 1.4 billion tons to 5.4, with coal consumption growing from 1.09 trillion tons from 1992 to 3.975 trillion tons, then 4.554 in 2022.
• Aiming for carbon neutrality by 2060 would be difficult so emphasis is on electricity which doubled from 2007 to 2022.
• Investment in rapid rail still being done and some resources still free.
• China is undergoing remarkable development at a rapid pace, but complexity remains.

Socioeconomic Disparities

• Rapid economic expansion always results in regional and global imbalance.
• The spirit of entrepreneurship is as the building of economics is based on building on personal wealth and property often creating inequality.

Personal Consumption

• Personal customer statistics often point to growth in personal well-being, with consistent spending habits of nourishment at roughly 36%.
• The proportion of personal spending on durable goods, cultural entertainment or health are low.
• Share of family share is not up to 40%, indicating a high interest rate.

Data of Social Statistics

• Shanghai citizens are richer than in other regions, with high internet users, education levels, military, and other spendings.

Inequality

• Fast economic growth is associated with an increase in social inequality on early stages
• China a good case study on Kuznets’s theories.
• As Chinese society has improved its focus shifted reducing the social inequality from 2017.
• China elicits a interest in researchers about its social inequality with the IMF publishing on the matter.
• China’s inequality had increase since the start of 1980s with a modest decline since 2008.

Social Inequalities

• Caused by a shift in urbanization, birth reduction, and transition from agriculture to industries.
• Those living poor standards in China is decreasing.
• Those that live under $6.85 in China is just 25% of the Chinese population.
• A table can be used highlighting the social society by the MBRR

Poverty, Government, and Statistics

• China worked to eliminate absolute poverty by 2016.
• China emphasizes innovation, openness, and start-up liberalization.
• Chinese statistics and CHIP provide unique comparative financing information of a household nature from 2013, 2018.

The Next Stage

• China is creating economic goals for 2035 with high numbers with continued global growth and the Shanghai government to be high to support these trends and new high tech investment.
• The question how to continue growth arises as China moves to continue rising and compete.

Chinese Plans

• China focuses on creating resources, green measures, and improving innovation.
• Chairman Xi Jinping is targeting doubling incomes.

Theory

• Many factors have boosted China, while it's specific factors must be factored for theorists.
• Theory suggest state role important in stages.
• Statistic of Chinese consumptions are underestimated.