It has also been alarmed by the fall of Soviet Union.
China naturally wants to get benefits of globalisation and has been showing a reformed smiling face to the global economic world. For a communist regime, this is no mean task and even though the internal control has never been slackened in any way. The economic conditions are definitely exhilarating, but western economists say that there are obvious pitfalls in the economic path chosen by Chinese government unless it makes amends for economic and environmental sustainability.
China is the most populous country in the world having population density of more than 130 people per sq. km. The family plan came into being when the Chinese government realised that the population problem is getting out of hand. "Chinese government realized that the over-rapid population growth was harmful to economic and social development, and would cause great difficulties in the fields of employment, housing, communications and medical care; and that if China could not effectively check the over-rapid population growth, and alleviate the tremendous pressure that the population growth was exerting on land, forests and water resources, the worsening of the ecology and the environment in the coming decades would be disastrous, thus endangering the necessary conditions for the survival of humanity, and sustainable social and economic development"
China's economic development is not simply based on the g...
ttribute much of China's rapid economic growth to two main factors: large-scale capital investment (financed by large domestic savings and foreign investment) and rapid productivity growth. These two factors appear to have gone together hand in hand. Economic reforms led to higher efficiency in the economy, which boosted output and increased resources for additional investment in the economy" according to CRI issue brief for Congress", http://www.fas.org/sgp/crs/row/IB98014.pdf
It is considered to be Chinese miracle that the economic growth of China has altered the world economic scene. But according to economic analysers, Chinese economic growth has reached a critical stage, where more caution is necessary in policy making.
"At the same time, China's economic transition also reached a critical stage. Significant internal developments were and still are forcing the government to consider more aggressive reforms" http://findarticles.com/p/articles/mi_m1094/is_n3_v33/ai_20946408
But, there are many internal and external factors hindering Chinese economic growth. It is not easy to change the economic internal scenario overnight from an autocratically managed, centralised economy into a liberalised with slackened control one overnight. There are many steps to be taken mainly to alter the internal shape of the economy, industry, finance and business and naturally, the path to do that is rather rough. It is true that China is facing difficulties with state owned enterprises, which are running under loss and are about to shut down. The government has decided to support the larger enterprises, and the smaller enterprises will become part of history. China's economic development has caused other Asian and Western countries to sit up and take notice. China, till now, has