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China a country which has been on a transit between developing and being developed for over a decade.
Picture Courtesy: Profit loss

A Perspective: China!

China has been on a transit between developing and being developed for over a decade. This has not stopped China to create the world’s largest middle class population with the most number of billionaires in the world. Yet, the income parity between rural and urban population stands at 3.33 in ratio. China has controlled freedom of speech with respect to the world, but yet stands on par with technological advancements. China currently faces aging population, bad loans which it has lent to other countries, countries pushing back China’s aggressiveness towards its neighbors and its negativity surrounding Covid – 19.

Natural Resources:

  • Coal
  • Gold
  • Antimony
  • Iron Ore
  • Natural Graphite,
  • Aluminum
  • Steel
  • Rare Earths
  • Barite
  • Zinc
  • Tungsten

People and Economy:

  • The estimated population is 1.4 Billion in the People's Republic of China.
  • The People's Republic of China have twenty-two territories out of which Taiwan is under dispute, Hong Kong and Macau have been administered by China.
  • The population growth rate is at 0.1% annually.
  • The median age of population is around 38.4 Years and is expected to increase further in the coming years due to 65% of the population falling in the bracket (15 years - 65 years ).
  • The population density in the People's Republic of China is at 153 per Km2 (397 people per mi2)
  • The gender equality in China according to World Economic Forum has been on decline to 106 in the global ranking.  
  • There is a controlled Freedom of speech in People's Republic of China than most countries in the world.
  • The People's Republic of China Renminbi (RMB) is the currency of China and Yuan is the principal unit of account for the currency. Now the RMB is the fifth most traded currency in the world according to SWIFT.
  • The United States current GDP stands at USD 17 Trillion or 123 Trillion RMB.
  • The Gross Domestic Product per capita is estimated at USD 12,000.
  • The income per capita of People's Republic of China stands at USD 900 or 6500 RMB on average. This indicates for every USD 12000 a person contributes to China’s GDP, the person gets USD 900 as income for the country.
  • The foreign Direct Investment is at 1.8% of the global Gross Domestic Product.
  • The People's Republic of China has a strong middle class with over 50% of the population falling under the bracket of middle class. The Gross National income stands at roughly USD 10,000.  
  • Currently the household debt of China stands at 56% of GDP but with high population density most of the debt is gone into buying real estate which is again an investment.
  • Shift in Artificial intelligence from labor is in transition.
  • Depletion of Natural resources faster than most of the countries due increase in production
  • 42.4% of china land is covered by forests.
  • China is considered to have a huge water crisis in the future to come.

Transnational Issues:

  • India and China are trade partners but sharing a 2000 kilometer border has always been a issue for both sides.
  • Taiwan which positions itself as a different country has been blocked by the People’s Republic of China at various international organizations in the past.
  • China and Bhutan has boundary issues.
  • China and Russia have demarcated their boundaries after a prolonged dispute. 
  • The Belt and Road initiative by China across countries is in completion with EU’s Global Gateway and the US-supported Build Back Better World (B3W). 

Future of China perspective:

China's future will be shaped by various factors, including its population dynamics, economic development, natural resource management, social challenges, and geopolitical considerations. Here's a perspective on some key aspects:

  1. Population Challenges: China's population is the world's largest, and it is aging rapidly. The median age is increasing, indicating a potential decline in the working-age population and increased pressure on healthcare and social welfare systems. Managing the aging population and maintaining a productive workforce will be crucial for sustaining economic growth and ensuring social stability.
  2. Economic Growth and Development: China has achieved remarkable economic growth over the past few decades. However, sustaining high growth rates may become more challenging as the economy matures, and structural reforms are needed. Shifting towards a more sustainable and innovation-driven economy, investing in technology and research and development, and promoting domestic consumption can contribute to long-term economic development.
  3. Environmental Sustainability: China faces significant environmental challenges due to its rapid industrialization and resource-intensive growth. Addressing pollution, promoting renewable energy, implementing sustainable practices, and protecting natural resources will be vital for China's long-term sustainability and the well-being of its population.
  4. Social Challenges: Despite significant progress, China still faces social challenges such as income inequality, gender inequality, and social disparities between urban and rural areas. Ensuring equitable development, promoting social inclusion, improving access to quality education and healthcare, and addressing social welfare gaps will be crucial for social stability and harmony.
  5. Geopolitical Dynamics: China's rise as a global power brings both opportunities and challenges. Its relationships with neighboring countries, including territorial disputes and economic competition, will continue to shape its future. Balancing its domestic priorities with regional and global responsibilities, maintaining stable international relations, and contributing positively to global issues will be key for China's role on the world stage.
  6. Technological Advancements: China has been investing heavily in emerging technologies, particularly artificial intelligence. The development and application of advanced technologies will impact various industries and sectors, transforming the labor market and requiring a skilled workforce. Navigating the challenges and opportunities of technological advancements will be critical for China's future competitiveness and economic growth.
  7. Natural Resource Management: China's rapid economic growth has led to increased demand for natural resources, resulting in depletion and environmental degradation. Implementing sustainable resource management practices, promoting circular economy principles, and reducing reliance on resource-intensive industries can contribute to long-term resource security and environmental conservation.
  8. Water Crisis: China is facing significant water challenges, including water scarcity, pollution, and inefficient water management practices. Addressing water issues through improved water infrastructure, conservation measures, and sustainable water management policies will be crucial for ensuring water security and mitigating the potential impacts on agriculture, industry, and public health.

China's future will be shaped by various factors, including its population dynamics, economic development, natural resource management, social challenges, and geopolitical considerations. Here's a perspective on some key aspects:

  1. Population Challenges: China's population is the world's second largest, and it is aging rapidly. The median age is increasing, indicating a potential decline in the working-age population and increased pressure on healthcare and social welfare systems. Managing the aging population and maintaining a productive workforce will be crucial for sustaining economic growth and ensuring social stability.
  2. Economic Growth and Development: China has achieved remarkable economic growth over the past few decades. However, sustaining high growth rates may become more challenging as the economy matures, and structural reforms are needed. Shifting towards a more sustainable and innovation-driven economy, investing in technology and research and development, and promoting domestic consumption can contribute to long-term economic development.
  3. Environmental Sustainability: China faces significant environmental challenges due to its rapid industrialization and resource-intensive growth. Addressing pollution, promoting renewable energy, implementing sustainable practices, and protecting natural resources will be vital for China's long-term sustainability and the well-being of its population.
  4. Social Challenges: Despite significant progress, China still faces social challenges such as income inequality, gender inequality, and social disparities between urban and rural areas. Ensuring equitable development, promoting social inclusion, improving access to quality education and healthcare, and addressing social welfare gaps will be crucial for social stability and harmony.
  5. Geopolitical Dynamics: China's rise as a global power brings both opportunities and challenges. Its relationships with neighboring countries, including territorial disputes and economic competition, will continue to shape its future. Balancing its domestic priorities with regional and global responsibilities, maintaining stable international relations, and contributing positively to global issues will be key for China's role on the world stage.
  6. Technological Advancements: China has been investing heavily in emerging technologies, particularly artificial intelligence. The development and application of advanced technologies will impact various industries and sectors, transforming the labor market and requiring a skilled workforce. Navigating the challenges and opportunities of technological advancements will be critical for China's future competitiveness and economic growth.
  7. Natural Resource Management: China's rapid economic growth has led to increased demand for natural resources, resulting in depletion and environmental degradation. Implementing sustainable resource management practices, promoting circular economy principles, and reducing reliance on resource-intensive industries can contribute to long-term resource security and environmental conservation.
  8. Water Crisis: China is facing significant water challenges, including water scarcity, pollution, and inefficient water management practices. Addressing water issues through improved water infrastructure, conservation measures, and sustainable water management policies will be crucial for ensuring water security and mitigating the potential impacts on agriculture, industry, and public health.
  9. External Investments: China’s external investment is expected to grow further with RMB moving towards internationalization. With US debt owned by China, other countries are following the footsteps where they would be obliged to China in the coming years.

It is important to note that the future is subject to uncertainties, and these perspectives are based on current data and trends. China's ability to address these challenges, implement effective policies, foster innovation, and adapt to changing circumstances will play a vital role in shaping its future trajectory.

 


Perspective