Chinese Economic Growth

People Republic of China has made significant efforts in terms of human capital, especially after 1949. During the Mao Period, most of the people were seen as “state slaves” and government behave them as it owns the people. However, after China opened it’s gates to world and became a liberal country, Chinese people literally started to become richer as never before. Referring the IMF data, a Chinese worker now earns 10 times more than He did during the 1950’s, in terms of purchasing power parity. Also, We have started to see that Chinese artist and sportsmen started to take trophies to home, like sports tournaments or Nobel prize, this is another sign of development of human capital in China, because nothing like that happened in China before. It could be easily said that Chinese people are getting much more credit worldwide and well – respected, Chinese people are no longer just “cheap labor” for rest of the World as significant number of rich people lives in China.

China is expecting to surpass United States by 2020 in terms of GDP, the growth rate of China always been more than 7 percent for a decade now. Even though there were global and local crisis, China somehow managed to survive and continued to grow. Some factors in China, like large population and work force, cheap labor and some first – mover advantage make China uncompetable in some production areas. China Central Bank and Government has made a tremendous job in terms of managing Chinese financial system, they always kept the Chinese yuan low against other curreny; China does not use fixed Exchange rate system but it is close, they also managed to keep inflation low. There are some issues regarding sustanablity, like solar panels, air pollution, buildings and infrastructure for instance; but they does not seem so big problems to hold China back.

In terms of freedom, even though it would be really hard to tell that China is such a liberal country, they are working on it. The recent Freedom House report states that, China have come a long way in terms of freedom in media – press and freedom of religion. Chinese govenrment have been blamed for putting a lot pressure on mainstream media means, and they recently passed a new law states that now the government has right to any website or any online service without further notice. Those kind of stuff has drawn a great attention from Western countries and put the blame on Chinese government for putting unnecessary pressure on media. Recent reports showed that Chinese government no longer “bullying” the media workers, and the last China media bulletion which was released by Freedom House in June has shown that China in now a much beter position comparing to 2000s. Sarah Cook and Arch Puddington, experts on Chinese media and evaluates the Chinese freedom indexes for Human Development Index, has states that Chinese government stil has a lot power in their hands to direct and control media, as Weibo the biggest website of China is getting a lot attention and corection from government bodies.