China's Economic Growth - Research Paper Example

All Millennium progress targets have been achieved or are within attainment (Eckstein, 23). With a populace of 1.3 billion, China lately became the second leading economy and is gradually playing a significant and influential role in the international economy. It remains a developing state. For instance, its per capita earning is still a portion of that in superior states and its market reforms are imperfect.   Rapid monetary ascendance has caused many impacts as well, comprising high variation, brisk urbanization, impacts to the environmental sustainability, and external imbalance.

It also encounters demographic pressures associated with an aging population and the domestic movement of labor. Important policy adjustments are necessary in order for its growth to be sustainable.  Experience depicts that transformation from middle-income to high-income class can be more hard than moving up from low to middle income (Lardy, 25). China’s 12th Five-Year Plan that from 2011 to 2015 vehemently addresses such issues. It highlights the growth of services and procedures to deal with social and environmental imbalances, setting goals to cut down pollution, to raise energy effectiveness, to advance access to healthcare and education, and to inflate social safety.

Its annual growth goal of 7 percent calls for the intention to focus on value of life, rather than rate of growth.  Chinas economy was afflicted from the devastating effects of decades of fighting. A number of mines and factories were damaged. At the end of the war with Japan in 1945, Soviet troops had demolished almost half the machinery in the major developed regions of the Northeast and transported it to the Soviet Union. Power system, transportation, and communication had been smashed or deteriorated as they lacked maintenance.

Agriculture was interfered with, and food production was about 30 percent drop. Further, monetary ills were compounded by one of the strongest inflation in