Can China continue to grow without policy changes?
As part an ongoing articles on China, The Economist begins by examining the policies which have spurred unprecedented economic growth, as well as a tightening of the government’s grip on all aspects of Chinese society.
However, signs of unrest are beginning to emerge, exemplified by unrest in villages in the province of Guangdong.
“Yet for China’s rise to continue, the model cannot remain the same. That’s because China, and the world, are changing. China is weathering the global crisis well. But to sustain a high growth rate, the economy needs to shift away from investment and exports towards domestic consumption. That transition depends on a fairer division of the spoils of growth,” the article notes.
In order to continue its rise, China will have to open its markets, provide citizens greater access to capital, and formulate policies which address the growing challenges posed by a lack of resources to deal with an aging population.