The political and economic situation of china

With the rapid economic developed, in the world, at this moment, if you mention china this word, I am sure most of the people will hold up their thumbs, it means china has cleaned up the old history, following the society’s steps, becoming one of the strongest countries in the world, even thought china still only a developing country. During the past 30 years, china happened the world shaking changes; china’s economy has changed from a centrally planned system that was largely closed to international trade to a more market-oriented that has a rapidly growing private sector. A major component supporting China’s rapid economic growth has been exports growth. More and more countries choose to import from china, which brings to the double win results. At the same time, the presidents of china also pointed the right way about the policy, china is progressing, and china is developing. So china plays an important role in the world, in the meantime sets up a good example to the whole world.

Economic growth:

When we talking about a country, first we will focus on how the country’s GDP changing. GDP is cross domestic product, it is a measure of total follow of goods and services produced over a specified time period, usually a year. From the GDP changes we can analyze how this country develops and what factors make it changes. The following table is the recently five years of china GDP growth rate:

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The table shows the china GDP is not stable; it will vary which depends on the internal environment and external environment, such as in the 2008, because of the world economic crisis, the china’s GDP fall down clearly, but the china governments took effective measures to get well the economic, therefore, at the beginning of the 2009, the GDP grows up sharply. From the 2006, we can see china stands in a higher place. Compare with the old time, on the basis of the reliable data, from 1960 to 2005 the GDP is growing all the time, but from 1980 to 2005 it was increased rapidly, that is to say from the 1980, the china’s economic has entered a new level. In another hand, if we overlook the whole world, in the 2009 the world’s GDP ranking (as the below table shows):

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China stands in the third place. We can feel that china has become the world power, which can contribute to the whole world economic. The new GDP ranking of 2010 still not come out yet, but if you read the newspaper or surf on the internet, you will see the specialist forecast that the china will be the second one in the world, who following the US. However, some people hold the opinion “no need to celebrate”, because all over the world has felt the rapid speed of china’s developing. But if you obverse from another side, according to the 2009 per capita GDP, [3] china stands in the 99 place, so some counties said: china, this country is rich, but the people here are poor. All of this we can say because of the huge number of the population and some people lack of the knowledge as well. So if china wants to be in the lead of the world, must improve from all the sides, especially from the basic things, that are people.

Economic sectors:

Tourism:

Along with the social development and people’s life enter a comfortably-off level, more and more people chose to travel in the holiday, and china has a capacious territory, including many places of interest, as a result, leading to china’s tourism growing fast and pushing forward the china’s economic increasing. In 1978, china began the continuing economic reforms, which including the tourism industry. The reforms have resulted in spectacular economic growth and a boom in tourism development. In the 1992, development of domestic tourism emerged, so the Chinese government decided to increase the size of the tertiary sector to encourage the development of the tourism in the 2000. [4] Until the end of the 2000, 83444 thousand oversea tourists came to china for travelling and compared with before, increase 14.68%, and as a member of WTO, in the 2000, china became the top five in the world as receiving 31235.6 thousand tourists which stayed more than one day in china. [5] The tourism is improving all the time and china government also sets up a series of policies to support the tourism development, such as making the travelling law, open the western and so on. In addition, tourism industry brings more business chances to the country. For example, if a city has the tourism industry, it should be attract more and more businessmen to come here to open up, not only increase the prices of the houses, which is good for the real estate, but also give more changes to the unemployed, which can help governments to solve the difficulties. For instances, shanghai is one of the most fast rate of economic development city in china, no doubt that is most famous for the tourism. The Bund is the most popular place there, one night the expenses of the electric can equal a small city one month electric expense, it also makes lots of chance for young people to look for a job. Places who around shanghai also belong to the faster development cities; from this we can see the tourism is an important economic sector for the country’s development. To Chinese joy is most of the cities here have the tourism, it depends on the different location, weather, culture and so on make the wonderful and colorful tourism industry, finally make the economic growth quickly.

Agriculture:

Agriculture is an important economic sector in china, we call it the first industry, as we know, and that is always solving the people’s basic life. Around 300 million famers working for the agriculture areas and because of the plenty of the soil, china become the top one in worldwide farm output, primarily producing rice, wheat, potatoes, sorghum, peanuts, tea, millet, barley, cotton, oilseed, pork, and fish. It is well know that china holds on the one-fifth of the world’s population, but only has 7 percent of the world’s cultivated. 1978 is a key year for the whole country, the government began to reform. Farmers were given again the right to use land, to arrange their planting and dispose of their products. In the 1990s, though China’s agriculture and rural economic development were confronted with many unprecedented difficulties and challenges, they maintained a fairly good momentum. In the five years, 1996-2000, the total increment of agriculture in the GDP came to 7,129.18 billion Yuan. Today China leads the world in production of grain, cotton, rapeseed, peanuts, meat and fruit. And most of the mainland has been covered. Look at the map down, we can realize the coverage of the china agriculture. That is why we can say china is a strong country of the sgriculture.

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On the first hand, we should appreciate about the advance science and technology, they has enhanced agriculture production. Bilinear hybrid rice, hybrid beans and corn, and multi-crop planting have became to the high technology products. Agricultural scientific research has been encouraged by state programs geared to rural economic development. On the second hand, government also gives many supports. They open the green way to the agriculture, give the reasonable policy to the framers, every year the highest government will offer much money for developing the agriculture, and therefore, they encourage the farmers to contribute to the important industry. The project of “intensively processing main agricultural products” put forward by the Ministry of Science and Technology has been listed as an important scientific and technological project during the 10th Five-Year Plan period. Now more and more countries choose to import agriculture products from china, which impel the china economic growing fast. [7] 89

Industry:

China stands in the third worldwide in industrial output. The ninth five-year plan period, China will enter in manufacturing and assembly of heavy chemical industry as the key stages of development. We can make a compare, in the 1949, the output of steel only had 158 thousand ton, but today, the output will reach 0.5 billion ton, nearly the 40% of the whole world. Again in 1949, the output of crude oil was 120 thousand ton, but in 2008, the output reach 0.19billion ton. Now the light industrial goods have be sent to more than 200 countries and districts. 60 years of New China, China’s rapid industrial development has not only solved the problem of shortage of basic necessities, but also to make our country become a world manufacturing power. Doubling of Major Industrial Products. After 60 years of construction, the industry change radically. Iron and steel, nonferrous metal, electric power, coal, petroleum, chemical, machinery, building materials, textile, food, pharmaceutical and other industries, some new development of industrial sectors such as aerospace industry, automobile industry, electronic industry, etc, also developed rapidly. Since the 1950s, the trend away from the agricultural sector toward industrialization has been dramatic, and is a result of both policy changes and free market mechanisms. During the 1950s and 1960s, heavy industry received most attention and consequently grew twice as rapidly as agriculture. After the reforms of 1978, more attention to the agricultural sector as well as a move away from heavy industry toward light resulted in agricultural output almost doubling with only marginal increases for industry. From foreign factories and products cover the china to become the industry strong country, china used 60 years to change equal the developed countries use 300 years. We can analyze, industry holds the balance function to the china economic. [10] 11

Economic policy:

Since 1978, china began to reform and open up; it has adopted an open-door economic policy. From this china started to develop and progress. From a closed country to a full range of great historical turning point in reform, china’s opening up has made great lots of achievements, realizing from the closed and semi-closed economy to open wide the great historical turning point, formed from the coast to the river borders, and from the east open to the west regional echelon pattern. Five years plan is an important economic policy for china, which are a series of economic development initiatives policy. The economy was shaped by the Chinese Communist Party through the plenary sessions of the Central Committee and national congresses. The party plays a leading role in establishing the foundations and principles of Chinese communism, mapping strategies for economic development, setting growth targets, and launching reforms. [12] After many five years plan, china really reaches a great success, especially for the economics. For the investment of China, during the past twenty years, Chinese government has made great achievements in attracting foreign investments and developing an export-oriented economy. But for the foreign investors, they think they still have many problems in the Chinese investment environment. However, the Chinese government is making efforts to address these problems in order to encourage more foreign investments. And Chinese government also have promulgated various favorable policies for foreign investment and assigned several special regions. About the financial policy, focusing on the 2010 financial policy keeps eyes on five key points. Firstly, pay attention to carry forward structural adjustment, the purpose is for improving the economics’ quality and benefit. Secondly, is lay stress on expand domestic demand, especially is consumer demand, practically keep the economic steady and faster increasing. Thirdly, pay more close attention to safeguard the people’s livelihood to make sure coordinated development of the economy and society. Fourthly, focusing on deepen the fiscal and tax reform, aim to enhance finance economics’ inherent motive power and vigor. Fifthly, make the finance scientific and refined management, feasible to advance the finance’s performance. From above points, we can see, china gives the economic policy effective, enter the new century, the national environmental protection more dominant place on the construction of ecological civilization, put forward the basic form by 2020, saving energy and resources, and protecting the ecological environment is a new economic policy in china now, we can see, china government depends on the different situations and backgrounds to make the different economic policies, which is good for the countries’ developments. [13] 14