The Anatomy of China's Economy

Happy Father's Day! I had the chance to spend the whole day with my dad today and one of the things he loves to talk to me about is foreign affairs. So here is a very dad-inspired post:

Back in 2007, I was interviewed by an admissions officer from U of Chicago, a school known for its economics program and thought-provoking questions. One of the questions that I was asked was "What do you think of China's economy?" At that time, I was not so politically inclined so I simply answered, "it's so bad that it's good." Now three years have passed, where not only have I matured, but so has China's economy, allowing me to give a more detailed answer to that question.

China has become a hot topic in recent years, for its government proceedings and more notably, its rapidly growing economy. Since the 1990's, China's economy has been on the fast track much due to the string of economic reforms at that time. Its GDP was ranked third in the world in 2009, right behind the US and Japan, and many analysts predict that the RMB will match the US dollar in thirty years. However, many speculators do not see this sustaining. The rapid economic growth and flaws with Chinese products are some of the reasons that people are hesitant to recognize China as a superpower. Yet, I think these are just a few holes that can easily mended.

China is big topographically and in size, with the largest human capital in the world. What is happening in China right now is similar to the US during the 19th century. The Industrial Revolution was a springboard for technological innovations and thus economic expansion but at the same time, hazardous conditions existed in factories and laborers were overworked. Also, during this time, there was a great interest in expanding West which led to the development of the midwest. Like the US, much of China's civilization is concentrated along the shore. There are so many untouched resources and possibilities that will be beneficial in the coming years.

Much of what we know about the China, its sociability and its economics, has been through the lens of Western media. Underneath what we see includes 2000 years of history and a strong culture. All this makes the understanding of China's development both fascinating and complicated.