The Grass is Always Greener In China…. Or So It Seems

http://www.wbur.org/npr/163658514/as-economy-slows-china-looks-for-a-new-model

 

This article juxtaposes how the Western world views China as an ever-growing world power, and how economists see it as a nation struggling to adapt to new economic demands.  The interesting thing with this article is that it highlights many aspects of “growing pains” that America and other industrialized nations went through many decades ago.  Issues with infrastructure, labor movement, rising labor costs, and government corruption plague the nation, bringing China to “a crossroads,” in the words of an economist working at the China Europe International Business School in Beijing.  This insight into China’s greater economic plan, as well as the incoming economic struggle they will face, is interesting when one takes into account the role of externalities, price discrimination, and taxes, all which have influenced China’s success both in positive and negative ways over the past several decades.

4 Comments »

  1. linz Said,

    November 1, 2012 @ 8:01 am

    Keep in mind that every economic conglomerate faces problems in externalities and taxes. Price discrimination, in the realm of firms’ price-decisions-making, is a strategy occurred in natural monopoly. So I do not exactly understand “takes into account of … price discrimination…”. Rather than claiming China is in a crossroads, I’d substitute America into the nation which is in the crossroads. The reality is that China owns America now.

  2. Rach S Said,

    November 4, 2012 @ 1:29 am

    I’m all for any article that takes a general misconception and shows the truth behind it; and this article did just that. While I do think that China does have a big stake in America’s future, this article shows the country in the same pot as the rest of the world. While they are still growing, this growth seems to be declining, they are even outsourcing labor! I thought the most interesting part of this article was the connections between the current failures in China’s economy and how each is reflected in our own lives here in America. As I was reading through the article I just kept thinking oh wow I’ve heard about that here too. I see the article as a major indicator that maybe the world should start learning from each other’s pasts not just our own.

  3. linz Said,

    November 4, 2012 @ 4:12 am

    China would never outsource low-cost labor. While your arrogant americans are passing judgments to China’s economy, the technological advancement and value update of traditional manufacture industry are on schedule and proceeding under the powerful propeller of China’s government. The fact that citizens of the US has those misconceptions of China’s economy is fundamentally flawed. Yes, I agree that there are a lot of shortcomings in China’s economic growth and it is now slowing down from two-digit growth to one-digit growth. But I dare say China is still growing faster than America every single year. As a matter of fact, I would argue that american economy is facing even bigger trouble and becoming more and more problematic, based on my own research. The worst of it is the future of american economy heavily depends on the result of this presidential election, which turns out to me as a farce comedy. Coming back to the problems that China is now facing, I am certain to say that the top 2 problems are mistrust in China Communist Government and the potential violent revolution among masses of China, which is definitely a positive indicator of reformation and revolution of political regulation of economy. As a witness of China’s economic growth for the past 20 years, I predict that there is still fertilizing land and space in China to accommodate newly-developped and updated industries. On the top of those are massive urbanizations and meeting the demand of 1.3 billion people. China is gradually becoming an incubator of innovative industries for the world to consume, while it will make the main power, america, more restless to tackle the powerful competitor.

  4. Russ Allen Said,

    November 8, 2012 @ 4:11 am

    This article seems to support the idea that nothing is ever as good as it seems, and nothing is ever as bad as it seems. I must agree with them in the fact that the U.S. public has talked as though China is a utopian society, or at least as far as the economy is concerned. With this image in mind, it is almost impossible for China to follow through with our ideas and expectations. As many others have said, China may indeed be an up and coming world dominating super power, but like all other superpowers, will have imperfections and fluctuations. It should not be surprising to find that China is not perfect, but we should also realize that these imperfections are not crippling.

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