- July 31, 2012
- Posted by: essay
- Category: Sample essay papers
Today, China is one of the leading countries with a huge economic potential. The national economy of China grows steadily increasing the role of the country in the international economic relations. In such a situation, it is necessary to underline that the recent successes of China are mainly determined by local socio-economic specificities, which though do not prevent the country from serious problems that can affect the national economy.
On analyzing major strengths of the Chinese economy, it is primarily necessary to single out the huge labor force market of the country which creates favorable conditions for the rapid economic growth. A large number of the younger population decreases the cost Chinese companies spend on the labor force, which is consistently lower compared to costs of the labor force in developed countries of Europe, the USA or Japan.
In addition, China has huge natural resources which provide the country with the possibility with fast industrialization, which, in its turn, opens the way to the post-industrial development of the country. At the same time, the lack of the protection of the intellectual property rights opens practically unlimited opportunities for Chinese companies to produce products which substitute products of popular Western brands.
On the other hand, it is also possible to speak about certain risks that accompany the current economic development of China. In this respect, the lack of intellectual property rights may be viewed as a risk because potentially it makes the national economy vulnerable to the introduction of sanctions from the part of other countries. In addition, China suffers from corruption, which slows down the economic development of the country consistently.
Nevertheless, China has great prospects for the further ongoing economic growth.