What's the secret to have a economic growth like China?

Question

Hey guys do you know any good page that explains the rapid economic growth in China, I need it for my seminar work

Answer 1

EASY MAN... Just pay all your workers 10 cents an hour and brainwash them by saying they work for the common good of the communist party.
Then have all your factories pollute the air like crazy, and NOT spend any money on the environment or health care. Who cares if the workers die.. you got 2 billion more where they came from.
Make sure all the products you export LOOK GOOD and sell at a cheap price. Who cares if they break a year later... then those stupid westerners will just buy ANOTHER one from China.
Finally your economic growth will be so good, but you will be stuck with a slave-oriented, bicycle riding, PROHIBITED from EVER TRAVELLING out of the country society.
Sounds great to me Lee Fong Dung! Where do I sign up??

Answer 2

The first secret peg the yaun lower in vaule than it actually is to stimulate exporting. Second, set it up where foreign investors profit off the exporting, but make sure they dont withold the knowhow to produce products, and take exporting profits and buy companies with techical knowhow at all possible without spooking the attention of western goverments. Thrid, control currency to ensure that you have the advantage to export goods in demands therfore control wages. Forth, allow private ownership of companies, and be flexible when it comes to investments of added value to the country. Also, make sure with currency artically lowered that investors will not want to pull out capital at all costs. The export driven economy works to a certian point then the people add two and two demand the goverment to be more transparnet, and people expectations of well rise rapidly with economic developement. China will have a few nusiance as time goes on working class, middle class will start to want govt to accountable because they will get sick of cronies profiting off having acesss to the goverment. Finally, free trade is good if your economy can produce something of value that you lack, and the trade-off is more a benefit to the people than a hinder.


Neo-Liberalism economics is a joke to China why let people do money tricks when you actually need basic knowhow instrucutre. I know I give thumbs up, and down but im realist here, and sometimes keep you need to keep wages low and putting up hidden traiffs grows the economy, but it may make it ineffiecent for a long while, but its better than living in huts.

Answer 3

The critical part of having economic growth like China, is to stimulate foreign inward investment for export markets by all and every means possible - an undervalued currency pegged to your main consumer market, so there is little currency risk for investors, de-unionised workers, no corporate taxes, no costs like pollution control and tax breaks, no software or copyright costs etc..!

The key is - with foreign inward investment by corporations setting up there, critcally huge and immense transfer and development of capital and skills takes place as corporation's pour money into the special economic zones.

Eventually these industries form clusters of feeder industries and specialisations around producing goods - skills - which take years to develop and cannot be replaced once lost, by the countries who's industrial base is being hollowed out.

With these clusters, eventually the original foreign corporations which set up in China lose thier competitive edge, and the location of the cluster provides the base for China itself to produce innovative products.

Critical to China's economic growth is its low wage levels, and undervalued currency which is the same as a subsidy.

However, 40% of Chinas economy is now dependant on the income from exports.

Answer 4

Starting at 10% growth rate gives you more room to fall before growth becomes negative and starting with budget surplus means you can afford a bigger stimulus, Their government spent 3.2% of their GDP extra in 2009, mostly on infrastructure project, to make up for the decline in exports which they think improved their growth rate from under 7% in the beginning of last year about 10 now. It also helps that they are still mostly a command economy so when they decide to do something, it happens

Answer 5

When USA was in its prime industrial age where economy was booming, it had - Child labor, pollution and disregard of environment, lousy wages as there was no minimum wage.

I say the same things are happening in China too, more or less, until they develop even more. But then theres where the similarities will end. The world's gotta get ready because China will be knocking on their doors (or India?)

Answer 6

Hard work, good organization, and ingenuity.

Trevor Trillion: Sounds as if you're describing the USA which releases 25% of all the greenhouse gases in the world, not China. And the USA has only about 5% of the world population. China does have a health care system, the USA does not. Sounds like the pot calling the kettle black.

Answer 7

Deepthroat got it right. The gadfly made it more solid. However, my answer will show the actual secret: It is called LEADERS WITH A FOCUSED VISION, SINGULARITY OF PURPOSE.

Answer 8

Find yourself a sugar daddy trade nation who is willing to grant you most favorite nation trade status and open up their consumer market to you while granting you tax incentives. In a few years you will find yourself becoming very wealthy while amassing billions in the hard currency of your benefactor nation.

Answer 9

Cheap labour. Fake P&L accounts. Legal issues irrelevant.

Answer 10

CHINA HAS THE CHEAPEST OBEDIENT LABOUR FORCE WHO WORK ARE MADE TO WORK LONG HOURS EVERY DAY ,THEY HAVE NO CHOICE. MOST OF THE CAPITAL INVESTMENTS ARE TAKEN CARE BY THE GOVERNMENT,SO EVERYTHING IS CHEAP.