In the 2007 paperback edition of his book One Billion Customers, author James McGregor provides some clear insights into the economic transformation that China is experiencing.:
- Chinese business continues to have incredible gains in world commerce. Chinese companies inhale best practices from around the globe. Six Sigma and ISO-9000 management principles are as deeply ingrained in the minds of Chinese managers now as were the slogans in Mao’s Little Red Book in their childhoods.
- The world’s multinationals have poured into China to build world-class facilities that are critical parts of their global supply and R&D chains.
- China has taken enormous steps to open its markets widely since joining the World Trade Organization. Foreign companies aren’t hesitating to move in where they can and gobble up market share and Chinese-owned companies.
- While serveral hundred million people have been pulled from extreme poverty in the past three decades, the gap between rich and poor is getting larger and larger. The richest 10 percent of Chinese families now possess 40 percent of the country’s private assets while the poorest 10 percent own only 2 percent.
- The average annual income of a Beijing resident is $2,263, while a farmer in Qinghai earns $277 annually.
- Rich and poor in China now share the world’s dirtiest country. You can taste the putrid air in much of China, which is now home to sixteen of the world’s most polluted cities, and the rivers and lakes are colored in rainbow hues from industrial effluent.
THE RAPID RISE OF A NEW ECONOMIC SUPERPOWER
30 years ago, China was number 137 on the GDP list – just slightly ahead of Malawi. Today, China has the second largest GDP in the world. In the following video CNN’s Maria Bartoromeo interviews John and Doris Naisbitt about China’s booming economy and how it has fared during the most recent economic crisis.
IS THIS ECONOMIC GROWTH TREND SUSTAINABLE?
David Dollar suggests that the prospects for China’s continued growth are good for the next decade or so. However, as the labor force shrinks due to China’s One Child Policy and environmental degradation continues as China maintains focus on Economy over Environment, China will face issues for sustainable economic growth.
CHINA’S PRIMARY CHALLENGE IS ADDRESSING ECONOMIC DISPARITY
Jack Perkowski suggests that China’s Leadership is clearly aware of the challenge of getting the remaining 900 million poor people up the income ladder as quickly as possible to avoid the unrest that could emerge from economic disparity.
ECONOMIC DISPARITY TRUMPS ENVIRONMENTAL DEGRADATION
In his book, China Shakes the World, James Kynge suggests that Environmental Degradation is an important negative consequence of China’s rapid economic growth and the corrupt practices of local governments.
SKATING OVER THE “THIN ICE” OF SOCIAL UNREST AND ENVIRONMENTAL CATASTROPHE
As only he can, Tom Stewart succinctly summarizes the very delicate balance that China’s Leadership is dealing with as it strives to maintain sustainable economic growth.
CHINA’S ECONOMIC TRANSITION: QUESTIONS TO CONSIDER
- Will social unrest explode in China as a result of the increasing disparity between the rich and poor?
- Do the Chinese believe that the 30 year trend of 10% growth per year is economically and enviornmentally sustainable?
- Do the Chinese believe that the Government should take a more balanced approach in driving economic growth while moderating environmental degradation?
- Are the Chinese concerned about their ability to continue to access natural resources to fuel their growth? How might their “No Strings Attached” policies in dealing with trading partners create negative unanticipated outcomes for the country?
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