There are many people that take the view that China is a place that produces cheap items that don’t last. This is no longer the case. China has become a stable and growing economic force, one to be reckoned with.
In the last quarter of a century, China has turned around their economic standing, they are a power in the economic climate that should be listened too. In this short space of time, they have reduced the number of people residing in their country from living in poverty, 250 million down to just 15 million. This is something that many states alone might like to ask the question, how?
China, is now a place where economic stability rings through the markets; they have managed to grow their economy whilst everywhere else in the developed world are deep in recession, with little hope of a promising future.
The middle classes are experiencing a growth. So, too, are the investments and technology markets.
What they have done
China has seen the problems brought about by reliance on a single market; to continue growth in this way is unsustainable. This is why they have focused on not being reliant on the export market. Knowing that if this market slows down, which it has, the economic growth doesn’t decline, too much.
The first rule of investing is to make sure that you have spread your assets, so that if one fails you have another option that will protect your capital. This is true for the economic growth of a country; you can’t rely on one source for your growth; you have to make sure that you have evenly spread out your growth possibilities.
Despite the problems that other countries are facing around the world, China seems to have made a dramatic shift and has protected their growth and development. They have stood by and watched the other nations suffer with a depression, whilst they have maintained a steady, but healthy growth, in their economic presence.
Options for the world
There are many nations waiting for help that they are hoping might come from China. But China has made the decision that their prosperity will come from putting their country before the needs of other countries. This could demonstrate to the world that, China is a force to be reckoned with. It will be interesting to see how they stand in the economic climate, when the recession starts to dissipate.
So, going back to the original question is China a learning curve? Are they a state that we should consider to learn from? It will be something that many states could use as an example, of how their own country has entered into a recession, to look at how China has managed to grow and develop on its own.
It should make you question how and why they were able to grow, when the rest of the world were struggling with debt and financial crises. Does it not make you wonder if they have foreseen this disaster heading towards the Western world and taken steps to avoid being included?
Should we learn from others and see how a country has managed to combat what many feared was impossible? It is certainly a learning curve that may prove to be the saviour of the modern world.