Start of plan and draft of Economics Essay
Evaluate government strategies used by China to address recent (last 10 years) economic
problems and issues.
Argument: Policies and successful strategic planning has been the success of the planned
economic model to solve economic problems and issues.
1.1: Introduction:
Effective strategic planning has been the success of the planned economic model to solve
and address economic issues in China as an emerging economy. Emerging economies are
nations that are increasing their involvement in global markets and transitioning to a more
developed economy with higher standards of living. The interdependence of economic
growth, human development and the balance of environmental sustainability will be vital in
ensuring the sustainability of China’s economy through the policies of Made in China 2025,
the Belt and Road Initiative, the 13th Five-Year Plan and the Healthy China 2030 plan,
combined with the lessons from Covid-19 for government healthcare strategies.
1.3: Overview
The economy of China has been described by the World Bank as “the fastest sustained
expansion by a major economy in history”, doubling its GDP on average every 8 years, and
unprecedentedly lifting over 800 million people out of poverty in the space of a few
decades, by being the world’s largest manufacturer and trader. Modern China is enforcing
the movement away from an extractive-dependent economy to attempt to become one
dominating the markets of high-tech by centring technology in the economic development
models.
1.3: Background
China’s economy is centrally planned, thus the government controls a large part of the
factors of production and the solutions to the economic problem. Prior to trade
liberalisation 40 years ago, China sustained policies that maintained the economy stagnant
and inefficient. The opening up and commencement of free-market reforms in 1979 has
highlighted the cosmic potential the country had been suppressing, fuelled by China’s
successful government strategies.
2. Outcome 1: Economic growth
Economic growth refers to the changes in a nation’s output of goods and services over time
and is measured in terms of the Gross Domestic Product (GDP) every year. In 2019 China’s
GDP consisted of 14.8 trillion USD, which increased by 6.1% since the previous year. The
significant issue faced by China is the gradual slowdown of the GDP growth rate, from 14.2%
in 2007, to 7.9% in 2012, and 6.1% in 2019. This is mainly caused by increased competition
, for low-end production from Vietnam, Bangladesh and India, in response to which, China is
transitioning higher in the technological industry.
2.1 Policy 1: Made in China 2025
The Chinese Communist Party planning bodies prioritised domestic innovation through the
strategic initiative of “Made in China 2025” to overturn the historical perception of China
being ‘the world’s factory’, a low-end, cheap producer. The plan was announced in 2015 to
modernise manufacturing in 10 key sectors, including microchip, aerospace, biotech and
information technology, with to become a “world-leading technological power”. The policy
will, in the long-term, attract foreign direct investment and influx of intellect, injecting
resources to increase China’s overall production possibility frontier, increasing output and
aggregate demand, allowing China to be a dominant economy in the Fourth Industrial
revolution. Therefore, China’s long-term economic growth will be kept stable through the
Made in China 2025 plan by integrating higher-end production and hence avoiding the
challenges that result from cheap producers in south-east Asia that compete for the export
markets of cheap goods.
Tabl
e1
2.2 Policy 2: Belt and Road Initiative
Another centrepiece of General Secretary Xi Jinping’s foreign and economic policies is the
Belt and Road initiative, announced in 2013. The policy aims to pre-empt is the long-term
issue of regional economic growth, by “constructing a unified large market, resulting in an
innovative pattern of capital inflows, talent pools, and technology databases” with the
target completion date of 2049. The B&R addresses an “Infrastructure gap” and aims to
propel macroeconomic growth across the Asia Pacific, Central and Eastern Europe and
Evaluate government strategies used by China to address recent (last 10 years) economic
problems and issues.
Argument: Policies and successful strategic planning has been the success of the planned
economic model to solve economic problems and issues.
1.1: Introduction:
Effective strategic planning has been the success of the planned economic model to solve
and address economic issues in China as an emerging economy. Emerging economies are
nations that are increasing their involvement in global markets and transitioning to a more
developed economy with higher standards of living. The interdependence of economic
growth, human development and the balance of environmental sustainability will be vital in
ensuring the sustainability of China’s economy through the policies of Made in China 2025,
the Belt and Road Initiative, the 13th Five-Year Plan and the Healthy China 2030 plan,
combined with the lessons from Covid-19 for government healthcare strategies.
1.3: Overview
The economy of China has been described by the World Bank as “the fastest sustained
expansion by a major economy in history”, doubling its GDP on average every 8 years, and
unprecedentedly lifting over 800 million people out of poverty in the space of a few
decades, by being the world’s largest manufacturer and trader. Modern China is enforcing
the movement away from an extractive-dependent economy to attempt to become one
dominating the markets of high-tech by centring technology in the economic development
models.
1.3: Background
China’s economy is centrally planned, thus the government controls a large part of the
factors of production and the solutions to the economic problem. Prior to trade
liberalisation 40 years ago, China sustained policies that maintained the economy stagnant
and inefficient. The opening up and commencement of free-market reforms in 1979 has
highlighted the cosmic potential the country had been suppressing, fuelled by China’s
successful government strategies.
2. Outcome 1: Economic growth
Economic growth refers to the changes in a nation’s output of goods and services over time
and is measured in terms of the Gross Domestic Product (GDP) every year. In 2019 China’s
GDP consisted of 14.8 trillion USD, which increased by 6.1% since the previous year. The
significant issue faced by China is the gradual slowdown of the GDP growth rate, from 14.2%
in 2007, to 7.9% in 2012, and 6.1% in 2019. This is mainly caused by increased competition
, for low-end production from Vietnam, Bangladesh and India, in response to which, China is
transitioning higher in the technological industry.
2.1 Policy 1: Made in China 2025
The Chinese Communist Party planning bodies prioritised domestic innovation through the
strategic initiative of “Made in China 2025” to overturn the historical perception of China
being ‘the world’s factory’, a low-end, cheap producer. The plan was announced in 2015 to
modernise manufacturing in 10 key sectors, including microchip, aerospace, biotech and
information technology, with to become a “world-leading technological power”. The policy
will, in the long-term, attract foreign direct investment and influx of intellect, injecting
resources to increase China’s overall production possibility frontier, increasing output and
aggregate demand, allowing China to be a dominant economy in the Fourth Industrial
revolution. Therefore, China’s long-term economic growth will be kept stable through the
Made in China 2025 plan by integrating higher-end production and hence avoiding the
challenges that result from cheap producers in south-east Asia that compete for the export
markets of cheap goods.
Tabl
e1
2.2 Policy 2: Belt and Road Initiative
Another centrepiece of General Secretary Xi Jinping’s foreign and economic policies is the
Belt and Road initiative, announced in 2013. The policy aims to pre-empt is the long-term
issue of regional economic growth, by “constructing a unified large market, resulting in an
innovative pattern of capital inflows, talent pools, and technology databases” with the
target completion date of 2049. The B&R addresses an “Infrastructure gap” and aims to
propel macroeconomic growth across the Asia Pacific, Central and Eastern Europe and
