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How does China's economic growth affect the society?
Sunday, 20 April 2014 | 09:34 | 0 comments

With China's fast growing economy, there of course, has to be an impact on its society. There are mainly negative impacts it has in the people go china, and how this has affected their livelihood. Here are some examples of the disadvantages of the impact of the fast paced economy China faces.

Cons

- Pollution is a major problem in China's rapid economy growth. More factories in china will be opened up for mass production of goods to be exported to other countries, producing large amounts of greenhouse gases, harmful gases into the atmosphere resulting in air pollution in the country.  Also, increased car ownership of the many people living in china has led to problems of smog and worsening air quality. Health problems will also arise in china. Pollution occurs mainly from China’s vast industrial sector, hence, the economic development contributes a lot to the air pollution in China.

- there will be also growing income inequality occurring in China. Its economic growth has benefited the south and eastern regions more than anywhere else. This has created a growing disparity between north and south. The agricultural north has, by contrast, been left behind. Many farmers struggle to make a living. Therefore, this has encouraged a migration of workers from north to south. China has struggled to deal with this regional inequality where there are fewer and fewer farmers working in those areas.

- China will get caught up in its own speculative property bubble. Especially in Beijing and the south East, houseprices have increased significantly. There are concerns that this property bubble could burst, as people would not want to purchase anymore houses there, creating negative equity.

China's unemployment rate will go up. It sounds ridiculous that the Chinese economy can grow at 8% and yet unemployment is still a problem. The reason is that there are still many state owned enterprises which are grossly inefficient. Therefore, in the process of privatisation and modernisation many surplus workers are being made redundant. There is also a lot of unemployment (and disguised unemployment) in the agricultural sector.

- Chinese yuan will get undervalued. The Chinese Yuan has been tied to the dollar. As the dollar had devalued the Yuan has also devalued. However, it is argued by many (especially in the US) that the Yuan is undervalued against the US dollar by up to 40%. The impact of an undervaluation of the Yuan is that:

  • Increase inflationary pressure in the Chinese economy.
  • Make it expensive for Chinese to buy foreign goods.
  • Give an artificial advantage to Chinese manufacturers.
All in all, I feel that China's fast growing economy has left a large impact of the Chinese citizens in china, many people have been unhappy with the change that has happened in china over the years. I have to admit, if I were a Chinese citizen living in the capital industrial area of china, my life would be threatened as health issues would worsen, I would often get sick due to air and noise pollution, and my freedom of going about wherever I want will be robbed of me. Hence I would not like what china has become, being a fast growing economy, it has not very much benefitted the people in China at all.

Tan Jing Wen (19)