Wednesday, July 24, 2019
The Economic Growth of China and Decline of the West Essay
The Economic Growth of China and Decline of the West - Essay Example It is also quite possible that China may never overtake the west because its population growth is set to fall in coming years, and this will reduce economic growth greatly. For instance, Due to ChinaÃ¢â¬â¢s policies to control their large population such as the Ã¢â¬Å"one child per family policyÃ¢â¬ (Qian, 2009), sterilization of people who have two children (Scharping, 2005), China will have a large population aged over 65 years old. ItÃ¢â¬â¢s working population will, therefore, reduce resulting in slower economic growth due to reduced labor, hence lower GDP. The countries in the west have a steady and almost constant increase in population. There is, therefore, an assurance that the human capital will always be available to work in the industries and sectors to increase production (Weston, 2004). Thus, this gives the west a competitive edge of China now and in the future. Ã ChinaÃ¢â¬â¢s political instability to some degree holds its economic growth. Politically powerful state-owned enterprises and state-controlled banks resist internationalization of their currency, the Yuan. Being government agencies, they usually have control over the policies that are made. Private business groups that support financial liberalization, usually have zero to weak influence on the Chinese policymaking (Weston, 2004).