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• W1522523923 abstract "China has stunted the world with its two-digit or near-two-digit growth in the recent decades. This has been unprecedented in the past 200 years of the country’s history, Mao’s era of 1949 to 1976 included. In the process, China has overtaken Germany as the third largest economy in aggregates in 2008. Now, China has surpassed Japan and become the second largest economy in the world. The Chinese economy has been transformed from a poor and closed economy to an open one with a medium income on the world average. China’s current economic structure in terms of employment pattern and urbanisation has been radically altered, too. Much of China’s new growth has been generated by foreign trade. From 1978 to 2000, the total value of China’s foreign trade increased explosively, (110 times, from RMB ¥35.5 billion to RMB ¥3,927.3 billion, current prices), faster than any other parameter of the economy. However, the question of sustainability looms large as China moves on. The growth of the economy has been based on heavy inputs of cheap labour, cheap materials and easily available foreign capital. So far, the Chinese industrial wage has been about one-tenth of the US level. In 2004, with over US$ 60 billion of foreign capital invested, China surpassed the United States and became the largest FDI recipient in the world. Any change in the relative prices among the three factors may slow China’s growth down. Moreover, China has adopted a supply-driven model to sell its manufactures worldwide. These have made China highly depended on the world market for inputs (capital and materials) and output sales: it exports about 40 percent of its GDP and about 70 percent of the economy is linked to exports. As much as 90 percent of China’s exports are manufactures. Unless the outside demand for China-made goods maintained at the same speed as China’s exports, the market may no clear itself. Then China faces the problem of over-production, not to mention the environmental implications of an input-intensive model that China operates. Last but not the least, there is an issue of political stability in relation to the ongoing problem of social inequality and official corruption. It is not unheard of that inequality and corruption slow down economic growth. ‘China exceptionalism’ may not last for too long. 9" @default.
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• W1522523923 date "2010-10-05" @default.
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• W1522523923 title "Globalisation, China's Recent Miracle Growth and Its Limits" @default.
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• W1522523923 doi "https://doi.org/10.5772/10228" @default.
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