China: factory to the world - Research Paper Example

lowing a consistent and unified approach to its domestic political affairs with the government steering the economic and social policies of the nation (Selden,1992). However, with the change in the global arena, the collapse of the Soviet Union and with the United States becoming the sole superpower, China needed to reassert its stance both externally as well as internally (Pei, 2009). Externally, political issues that China faces are related to its human rights policies and implementations. China is subjected to external political pressure on several issues regarding is treatment of its people, and at times, the external business agencies try to influence the Chinese record on labor management, safety norms and wages etc.

Internally the current decade has seen a change in regime with the advent of the fourth generation leadership. Though the country has seen growth and prosperity under the political reign of the China Communist Party, there is still some amount of discontentment as the people of China crave for more personal and political freedom. The economic and social development of the country is truly possible only if the people of China are committed and involved – things that the current political position of the Chinese government does not encourage.

In terms of social problem, China faces issues like unequal distribution of income with the rich people getting on an average of 2.8 times higher than the national average and the poorest having less than 30 % of the same in 2003 (McNally, 2007) In addition, the rampant utilization of the farmland has led to the displacement of farmers and low wage earners further creating disparities in income. Other social problems include widespread and all pervasive corruption, with China ranking 72 on the Transparency International’s Corruption Perception Index or CPI (Transparency International, 2007).

Corruption leads to delays and bottlenecks in at all levels of business operations and also leads to a bad name