Problems In Chinas Economy
Today, at the turn of the century, the People¯s Republic of China who has a history of over 5000 years is facing a very important choice. After the revolution of 1949,new China has devoted himself to improving his peoples¯ living condition, and developing the economy. Although we encountered some difficulties on the way of development, we still make a rapid progress in many fields, such as, we have already solve the problems of how to feed a forth of the world population which seems impossible and difficult to the developed countries, our country has already become an important power in the world not only politically but also economically. After we adopted the policy of reform and opening to the world in the year of 1978, our economy grows steadily and rapidly than ever. And our economy in recent 20 years has become a wonder in the history of the world economy. However, with the undergoing reform, we now face some problems. First, after so many years fear of inflation, our economy has an inclination of deflation. Second, for the agreement with the United States on entry in World Trade Organization (W.T.O.), our State Own Enterprises (S.O.E.) face many probl
Every year high-level officials from all over the world gather in Davos, Switzerland to held Global Economic Forum (GEF). And this year in early February, they met again to exchange their opinions on the growth of the world economy. This year¯s topic is °Economic Globalization±. All the participants agree that economic globalization is an irreversible historical trend. If a country wants to develop its economy, it is impossible for it to exist without the effects of economic globalization. The concept of °Economic Globalization± is a trend of integration, which happens to manufacturing, distribution, and consumption of economies around the world. While the trend goes on, there is a problem faces to us: Is China ready for the inevitable economic globalization? Now, the answer is unfortunately °No!± Hyman, David N., Microeconomics, Richard D. Irwin, Inc., Boston, M.A., 2nd Edition, 1992. Till now, we have looked three big problems: the tendency of deflation, the problems after the entry into WTO, and the outcomes of economic globalization. In fact, we still have many other troubles to solve. I now just point some of them. First I¯d like to raise a new concept °Reform Cost±, which means the cost of some twenty year¯s reform. After many years of reform, we can see that the living condition of our people has increased a lot, but there so many people still live in poverty. Meanwhile, there are several millionaires enjoy their life through drugs and outlaw activities. Is it a fair play? The answer is absolutely not. The rich try to evade taxes and do not like to share a little with their fellows, or even dare to invest any money to help them. Simultaneously the poor experience the torture of reform cost, such as, unemployment, laid out, extremely hard works. It¯s the poor and the average people take the responsibilities of reform cost, but not the rich. This makes our economy develops in a lopsided and abnormal way. We must stress more restrictions on the rich and force them to invest their money to help others development. At the same time, we also need set up perfect social security system for the poor. It¯s a matter of fact that all things have good effects and bad ones. For good effects, first, after entry into WTO, our economy will blend with international trade system, which will make our economy more normally and systematically. Second, entry will help us to eliminate other countries¯ trade barriers. And it do good for to export our products and attract foreign investment. On the other hand, we will also get some serious and challenging troubles in return after the entry. Because we must lower our tariff level in almost every aspects, foreign commodities will pour into our near-saturated market, and the great challenges from foreign companies will cause some SOEs (State Owned Enterprise) near the edge of bankruptcy. Here are some necessary concessions we have to make for the entry. In agricultural industry, according to the agreement between the United States and us, by the year of 2004 we must reduce our import tariff on main agricultural products to 14.5% or 15%. Therefore, more and more foreign agricultural products will enter out market more conveniently. In telecommunication field, six years after the entry, we must open nearly 50% market shares for investment. In automobile industry, according to the agreement, by the year of 2006, the import tariff on automobiles should be reduced from today¯s 100% to 25%. In banking system, foreign banks will provide RMB service to domestic enterprises after two years, and same service to civilians after five years, in addition we have to get rid off restriction of regions on foreign banks. Baily, Martin Neil, Macroeconomics, Richard D. Irwin, Inc., Boston, M.A., 1st Edition, 1991. Last but not the least, perfect consumption credit system, raise the amount of consumption credit. As I point out ahead, the restriction of mobility registers a vital score on deflation and the wea
Some common words found in the essay are:
Carroll Kimball, National Product, United It¯s, Owned Enterprise, Bureau NSB, GEF February, Actually SOEs, Republic China, United America, SOE Third, consumption inclination, economic globalization, people save, foreign investment, save money, people save money, retirement period, industrial structure, near future, economic system, income distribution, extension retirement period, social economic activities, irwin inc boston, inc boston ma,
Approximate Word count = 3393
Approximate Pages = 14 (250 words per page double spaced)
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