7 Responses to “ Why Is China’s Economy Growing So Fast? ”

1. Texas Cowboy on October 27th, 2009 11:38 pm

   One of the main reasons is the catch up affect. This is the property whereby country’s that start off with a low real GDP grow faster than country with a country with a high real GDP. This property is must simply illustrated by what many may know as the “most improved student award”. In short, students who start off with relatively poor performance, have an easier chance for greater improvement. China is a example of this phenomenon.

2. chris n on October 28th, 2009 5:56 am

   economic growth comes from the per capita, capital investment per worker.
   when the united states was protectionist, there was no incentive for american capital to be invested overseas (the production would have been met with a tariff anyway) so capital investment was made here. because of the growth, foreign capital also flowed in. america grew by leaps and bounds.
   under free trade, american capital is now invested in plants and equipment in china, because the chinese laborer is paid lower wages but still maintains his standard of living. it’s labor arbitrage in essance.
   the trade deficit with china is roughly equal to the capital being invested there.
   as we invest capital in china, they will grow, and we will see stagflation (which an economist on CNBC this morning said we are in, and have had for months).

3. A Free Thinker on October 28th, 2009 7:35 am

   Cheap labor (up to and including sweat shops where children are paid next to nothing and are chained to their workbench) and complete and total exploitation of resources for quick gain. They are eating up their resources at a rapid rate to make money. Too bad they hate the Japanese so much, because they could take a lesson from them. Sections of Tokyo in the 1960′s were completely uninhabitable due to pollution from rapid industrialization.

4. jeligula on October 28th, 2009 1:17 pm

   China is a recently industrialized country
   They are building many new facilities to make products that will be imported by other countries thus making them alot of money. Also, they do not import coal which is a fossil fuel and are still utilizing their countries as a recourse.
   The exportation of products is a major answer.

5. jonny footp on October 28th, 2009 6:47 pm

   because they are huge exporters… just look at the back of your tooth brush in the morning… 95% chance it says China!
   China is said to possibly become the next big super power…
   that is why a lot of American Children learn Mandarin in school… because we know they will grow up knowing Chinese and since we do most of our importing from them, it’s probably a good idea.

6. Cool heads prevail on October 28th, 2009 9:18 pm

   That’s cause not only do they have cheap labor, and many exports to around the world. but they also have a larger varity of natural resources!

7. cay on October 29th, 2009 4:05 am

   Cheap and slave labor .

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