The Developement of China - Essay Example

First it is the increase in the population of China and its economic expansion and second its gradual transformation from being an agri-based country to an industrialize country. Thirdly, its economy has been more of urban nature now than rural due to the building up of new cities. These three factors are considered to be the main factors behind the development of China and its economic rise on the world stage which is now providing it a much needed political as well as economic superiority in the world.

China is the most populous country in the world with more than 1 billion population (Rosenberg). This percentage give China roughly 20% share in the world population and in other words a 20% market share in the whole economy which has largely remained untapped by most of the businesses due to the closed economy of China in its past. In 1600, the overall population of China was 200 million while its population during 1950 was 500 million however what is astonishing is the fact that this population has doubled in 1996 and reached to the point of 1.2 billion. (Bennet).

China since 1978 has pursued many new measures and policies in order to restrict its population growth and it was because of this reason that the population growth since 1996 has been stagnant and is increasing at the decreasing rates due to the strict population control policies of the country. "By the late 2010s, China's population is expected to reach 1.4 billion. Around 2030, China's population is anticipated to peak and then slowly start dropping." (Rosenberg)Many also believe that this rise in the population could have created serious food and housing problems for a communist country however same has not bee the case mainly due to sustained economic growth of China over the period of time allowing it to keep the issues like food supply and housing well under control through the effective re-distribution of wealth evenly into different strata of the economy.

Economic GrowthThe economic rise of China is being considered as the most important trend in the world as it has been continuously beating the recommendations of many analysts who predicted the cooling down of the Chinese economy due to high oil prices as well as other commodities. What is most important with the Chinese economy is the fact that it enjoys a low cost environment. Due to its huge population base, the labor is cheap thus giving it a much needed flexibility in production and manufacturing of goods and services.

It also must be noted that the real era which ensured the economic growth of China started in late 1970s as it is from where China has actually started to open up itself to world markets and a slower and gradual transformation towards the market economies occurred.During 1950 to 1978, Chinese economy witnessed an average growth rate of 7% per annum whereas since 1978 it has been able to make a growth of more than 10% per year and it is continuous in nature. Interestingly the economic rise of China has been mainly due to the industrial development of its manufacturing based which has resulted into its