Analysis of Chinas Growth - Case Study Example

China’s Growth Student’s Name: Instructor’s Name: Course Code: Date of Submission: Introduction In the recent years, China has experienced rapid growth especially in terms of economy. This rapid growth is associated with clear policies and structures of the government to promote business activities. These rapid changes have led to improved living standards by reducing the poverty levels. From the researches which have been conducted, it is evident that this rapid growth is associated with context and prevailing circumstances in China. These growth strategies and policies are as a result of the internal prevailing conditions of the country. However, there are those who argue that the growth of China is not only associated with internal prevailing circumstances but also with the external conditions (Mahtaney 2010). This essay will discuss the circumstances that have led to growth strategies and policies of China. It will also discuss the argument about the external factors that determine policies and the growth of China. The growth of China has influenced various economies in the world by providing market for its products and also as a source of raw materials for other industries. The growth strategies of China have enabled the country to sustain its huge population. To begin with, the first context that determines the growth strategies and policies of China is the political stability of the country. For any economy to grow there has to be political stability. Economic activities like farming can only succeed when there is stability in the country so that people will settle down and conduct some businesses and do some farming (Cheung 2007). China for a long time now has experienced stability and many citizens have practiced various economic activities like Agriculture and mining. Political stability is good for the government of China to design policies and strategies of growth for instance by allocating various funds to various projects like Agriculture and industrial production to boost the economy. The context in the health sector also influences the policies and strategies of growth. The government of any country might be interested in safeguarding the health of the people so that they can be productive to the country (Cheng 2002). This helps to determine policies and strategies of growth in that after sustaining the health concerns of people, the government can design other policies and strategies to improve other sectors of economy by allocating resources to them for example providing funds to promote business activities. Another circumstance that determines the policies and strategies for growth is the level of technology. Ability to adopt appropriate economy is essential to design and implement various policies and strategies (Chen & Zhou 2005). For instance in China, the country has managed to experience rapid growth because they are able to design strategies and policies which can improve the business activities. High level of technology improves the performance of businesses besides being convenient and cost effective. For example, with the introduction of Robots, the government is able to introduce the strategy of capital intensive and many factories are able to cut down the cost of operations hence encourages businesses. Therefore, the level of technology determines policies and strategies of growth. The literacy levels further help to determine the policies and strategies of growth. High education can lead to high innovations and creative ideas in all sectors of the economy (Cheung 2007). For instance, in China there is high level of education which has helped the country to design new products and services. Education helps to determine strategies and policies by helping the government to set measures to improve the education status in the country so that the huge population will be productive and this system has succeeded in China leading to rapid growth. Another context that determines the policies and strategies of growth is the ability to conduct extensive Research and development. Through research and development, a country can be able to design policies and strategies that can improve the performance of various sectors in the economy (Day 2005). For example, China has spent many resources in conducting research and design and it has been able to come up with unique products and that’s why its economy has grown tremendously. Further, the government and private sectors are able to plan other designs and strategies based on the research and gain competitive advantage in the market leading to excellence in the market. Demographic factors further on the other hand determine the policies and strategies of growth. These are the factors like age, sex and geographical distribution of the people of China (Cai 2010). These helps to determine policies and strategies of growth in China in that the government is able to design measures to ensure that each group is productive and contributes to growth. For example the majority of China people are young therefore there are strategies of providing loans to them so that they can start businesses to sustain themselves as well as contributing to the growth of the country. Another context that determines the policies and strategies of growth of China is the cultural aspects of the people. Initially, China had the largest population in the world and the fertility rate was also high. This made it difficult to design policies of growth because the population was too high and was still on the increase hence it was not manageable (Cai 2010). Recently, the government introduced family planning methods and restricted the size of a family a household should have. This led to easier designing of policies and strategies of growth because the population is sustainable and the government resources can be used to develop other sectors of the economy like transport network system. Therefore, cultural factors have helped China to determine the policies and strategies of growth. Another circumstance that helps to determine policies and strategies of growth is the history of the country. China has been performing well in the international business and as a result, each subsequent government ensures that there are strategies and policies that will sustain and improve the history of the country through trade (Cai 2010). China is also known to explore and enter new markets and therefore any incoming government ensures that there are strategies in place to promote the continuity of the history of China. The prevailing circumstance of natural environment also determines the policies and strategies of growth. When the climate can be predicted, it will be easier to determine the policies and strategies of growth (Day 2005). For instance in China, the climate of the country can be predicted and therefore various sectors of the economy can project into the future and design strategies to meet any changes that might affect the performance of trading operations. A good example is when drought can be predicted and appropriate measures can be taken to avoid the severe consequences of the drought hence continue building the economy. The prevailing circumstance of poverty levels also determines the policies and strategies of growth. When the poverty levels are low, the growth of the country will be high and when the poverty levels are high the growth of the country will be low (Fung et al 2006). In the case of China, the government concentrated and put more efforts to reduce high poverty levels. This improved the consumption rates of the people providing ready market for locally manufactured products. Through this context, the government was able to design strategy of ‘buy China build China’ (Fung et al 2006). This helped to improve the growth of the country because there was market for some of the locally made products which in turn provided capital for other investment boosting the economic growth. On the other hand, there are those who argue that it is not only the context and circumstance of the nation that can determine the strategy and policies of growth. These policies and strategies can further be determined by the external forces. To start with the policies and strategies can be determined by world stability (Lloyd 2001). When there is world stability, it is easier to determine the policies and strategies of growth. This is because there will be trading partnerships among countries improving the business operations. For instance, China has managed to design policies and strategies of growth because of the world stability and has entered into partnerships with many countries leading to its rapid growth. Another external context that determines the policies and strategies of growth is the international trade agreements. Many barriers have been eliminated internationally and many countries are able to enter into international trade which improves their trading activities. For instance, China has managed to design policies and strategies of growth because it has entered into international trade agreements like WTO with many countries of the world which provide ready market for its products. In this regard, availability of international trade has helped China to design strategies and policies of growth by entering into international trade. Another aspect that determines the policies and strategies of growth is the international relations. When there is good international relations, trading activities can be done better because of the trading agreements made between countries (Zhang 2006). China is a good example of the beneficiaries of international relations. The country has good relations with many countries of the world and in the process it has managed to grow by entering into trade agreements with other countries and return it can find ready market for its products as well as sources of raw materials for its industries. Without good international relations, the country could not be able to enter trade agreements with other countries hence difficult to design policies and strategies of growth. Furthermore, world economy also determines the policies and strategies of growth of a country. When there is stable economy in the world, there will be high consumption rate which provides ready market for the products (Howe et al 2003). Many nations benefit from the stable international economy if they can be able to design policies and strategies that will enable it to benefit from the international trade. For instance China greatly benefited from the stable world economy in the recent years. The country was able to design strategies and policies that enabled it to benefit from the stable economy. For example the country managed to enter the international trade and acquired a large share due to competitive advantage leading to its growth. Another context that determines the policies and strategies of growth is the availability of market for the products and services. All sectors of the economy will improve when there is ready market for the products and services. Market can be gained when the quality of products and services offered is high than the competitors. China managed to acquire a large market because of the quality of products and in this regard they were able to design policies and strategies of expanding their business operations leading to its growth. Conclusion Based on the above findings, the statement that it is the context and circumstances prevalent in any nation that should determine its policies and strategies of growth is true. In the recent years China has reported tremendous growth in the world business and other sectors. The policies and strategies of growth of China are based on the context and circumstances in the nation. Among the contexts and circumstances that determine the policies and strategies of China include the following; political stability, high levels of technology reducing the cost of production, health of the people, extensive research and design which helps the country to design policies and strategies to come up with new products, demographic factors, history of China, education and culture of the country concerning the fertility rates and size of households. On the other hand, this statement is not fully exhausted because policies cannot only be determined by the national circumstances but also by external forces which are world stability, international trade agreements, international relations and the economical situation of the world. References Cai, Y. (2010). China’s Below-Replacement Fertility: Government Policy or Socioeconomic Development, Population and Development Review, Vol. 36, No. 3, pp. 419-40. Chen, Z & Zhou, Y. 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