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China - New Economic Giant

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Submitted By edster98
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China is called ‘The New Economic Giant’ for three reasons. Firstly, its economy has doubled in size every eight years. Secondly, China now has the largest sustained GDP growth in history. Thirdly, China controls 3% of the world’s oil reserves. A centrally planned economy is an economic system in which economic decisions are made by the state or government rather than by the interaction between consumers and businesses. In 1986, China introduced an ‘Open-Door Policy’ to overseas investment. It allowed China to transform into a more capitalist economy, allowing individuals to accumulate wealth by producing goods and services without State interference. This allowed China to rise as an economic superpower. Car ownership is expected to jump from 16 cars per 1000 people in 2002, to 267 cars per 1000 people by 2030. By 2020, China is expected to have 140 million private cards on the road, which is more than the USA. An increased number of cars and rapid urbanisation will lead to an increase in energy demand therefore, increasing China’s energy requirement. The problem with increased number of cars and rapid urbanisation is that China doesn’t have the required resources and therefore will rely upon importing oil to meet the requirements. China’s dependence in imported oil is expected to 60%, which raises issues about China’s long-term energy security. China is still largely an agricultural society and 60% of the population lives in rural communities, and 45% of the workforce is employed in agriculture. If most of the population works in agriculture, it’s impossible that energy usage for agriculture is only 19%. The situation exists because urbanisation is occurring too rapidly and therefore people are unable to move to cities to find jobs. China’s GDP per capita is 6,807.43 USD and therefore, with most of the population in poverty, the only job they can find is in agriculture which is relatively low pay.…...

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