Technology and growth in the Chinese - Essay Example

Technology and growth in the Chinese China is an upcoming economy that is experiencing technological changes. The growth of the Chinese economy has been greatly affected by the new technology with the Chinese being quite fast in adoption of the new technology. Technology has had its role in the economy through reducing the amount of human labor required in production as well as increasing speed of production in various stages of the product development life cycle. Being a rice growing country, the effects of technology on growth in china can best be tested using the rice production change attributed to technology.

A study of rice production yield in 13 rice growing provinces between the year 1978-1984 showed that adoption of technology in production contributed to a 40% growth in rice production while between 1985 and 1990 technology was the sole contributor to increased rice production (Huang 27). The rural economy therefore adopted the use of technology in rice production leading to increased productivity. This shows that technology has a major impact in the economy of china as it has contributed massively to the growth of the major economic sector of china.

Ideally, technology is a key tool for any economy to experience much positive change. This can be in the form of new improved tools of production, adoption in technology in the processing of raw material as well new improved ways of storage to add life to products. Furthermore, technology opens up foreign markets to local investors through the electronic commerce platform that enables trade across borders. The growth in the market size increases demand leading to more productivity to satisfy the growing demand.

Networking and growth of young technology in china The main aim of small upcoming firms is to grow and establish itself firmly in the market. This will enable the firms to compete well in the industry. This can be achieved well through networking. Networking is mainly the use of the contacts a firm has with relevant firms in the industry; this can be in the form of advice for the management of well established firms, suppliers, financiers and other stakeholders who may impact positively to the growth of the firm.

This will assist the firm to grow faster than other firms that prefer to stand out alone without any networks. A study carried out in china where the managers of three upcoming firms were interviewed and three who were successful affirmed using networking while those that did not experience much growth did not embrace networking. This shows the importance of networking for any technology oriented firm. According to a study by Aram & Zhao, for a firm to experience any substantial growth, networking is key instruments as it may as well enable the firm acquire resources at a price below the prevailing market price giving it a competitive edge over its competitors.

Moreover, the world has become a global village with the technology. This is visible in the opening up of international markets through online trading forums that enable firms to trade across the borders. Through networking, all firms can compete globally over the internet. Furthermore, the internet provides an equal platform for all firms, small and big, thus giving the small upcoming firms a chance to network with clients and establish a strong customer base leading to rapid growth. This affirms the importance of networking for the growth of a business.

Work citedAram J. D. & Zhao, L. Networking and growth of young technology-intensive ventures in china. Elsevier B. V. Vol. 10, Issue 5, 1995.Print.Huang, J. Rozelle, S. Technology change: Rediscovering the Engine of productivity growth in China’s rural economy. Elsevier B. V. Vol. 49, Issue 2, 1996.Print.