how China’s progress is bad for the rest of the world
China continues to experience the most outstanding economic growth the world has seen. This growth is because of the socialistic market economy that they adopted. The economic growth reflects in their advancement in technologies such as big data and mobile internet applications. However, it is about time the world had a conversation about this new economic trend set by China as it has a significant impact on the global economy. This paper shows how China’s progress is bad for the rest of the world.
The efforts by China to maintain the growth rates of GDP of approximately 10% per year registered in the past years could adversely affect the natural resources of the planet. It is quite evident that the world already consumes more natural resources than the earth can produce; this will worsen further with China’s economic growth. The increase in the consumption of natural resources by China and or any economy poses a massive threat to humanity. For example, the construction of Three Gorges Dam to cover for the demand for power in China faces criticism for creating environmental and social problems. The implication of further economic aggression could possibly deplete or unsustainably reduce natural resources. The effect would result in a global crisis in terms of inflation. The demand for limited natural resources would push commodity prices much higher while continuing to deplete natural resources.
The invasion of low-cost Chinese products could potentially damage the economies of several countries. China is using its economic power to dump its goods in the global market. These goods are stifling competition because they are cheap. A study shows that most of the products used in the world come from China; this is as a result of low labor costs and cheap supply materials in China. Low production costs and cheap labor is causing many companies across the world to move to China to get by the global competition. This movement would further lead to deindustrialization across the globe. Other economic problems such as unemployment would find ways into the world, thus leading to unsustainable social and political stability in most countries. In other words, the line of China’s economic progress will disrupt the world economy as it is designed to only work for Chinese goods and services.
The slowdown in the economy of China would adversely affect the many closely related markets in the world. The effect is just natural, considering that China has been the most significant contributor to the global economy. The far-reaching impact would blow in all the exposed countries in terms of export and import. Countries exporting to the big and diverse markets in China are poised to suffer every time the buying power is low. As a result, the drop in China’s economic growth would be too damaging for the global economy.
In conclusion, China’s economic progress is marred with several flaws that weigh heavily on the rest of the world. The world should come up with ethical standards to sustain a healthy global economy. Above all, the global market should be leveled to maintain a free market.