Essay Example on China Model: A Catalyst for Rapid Economic Growth

It recently came to my attention that China Development Model got to be a term used by media platforms to describe China's fast-growing economic development. China's economy got termed as the fifth largest in the world with the most extensive automobile units and the largest producer of essential industrial and agricultural products (Cheng, 2019). The China Model appealing as I looked into its' main features. It got characterized by export-led industrialization, upgrading technology, rapid economic growth, autonomous development, and reduction in poverty.

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A time for change typically reaches for every country, and for China, this was the change from a manufacturing hub of low pay to high tech and high paying jobs. China did well on the former since it has a large population. A large population often signifies readily available labor. With the shift, they need to decide whether to keep the manufacturing bit or shift entirely to high tech and high paying jobs.

I understand that as the years went by, manufacturing labor costs have risen, making the production cost of local goods high. A situation such as this affects the economy negatively. Shifting the lower end jobs to other countries with low labor costs is an alternative China can consider. Furthermore, with its overly-developed skills, it can focus its' strength on the high paying jobs. Cheap labor resonates with economic growth.

Also, goods produced from manual labor are relatively less appealing than goods produced from machine run industries. Other countries may not prefer the quality of products coming from China as they get manufactured with less precision compared to other countries (Cheng, 2019). The less the exports, the less the development of the economy since the foreign exchange is not coming in. I believe that given the low quality of goods, China has to export to poorly developed countries and, in turn, do not earn much from it.

Moreover, taking a look at its competitors, it does not stand a chance if it maintains the manufacturing hub of low pay. Its competitor, such as the United States, are utilizing technology in every form of production. High technology input results in more output per unit time. Time-saving is a concept of manufacturing every producer takes into account. If China focusses its resources on the incorporation of high technology and pays people a higher salary, it stands a chance to grow its' economy rapidly.

Besides, due to the developments, it must make way for private companies. Private companies are the backbone of the incorporation of high technology to the economy. Meaning the public manufacturing companies must be done away with to make space for the private ones. The good thing is that they have areas already in place where they can shift these companies. Manufacturing of toys and cameras is moved to Mexico, whereas auto-motives production moves down to Thailand, Vietnam, and India. China has grounds to which it can move manufacturing. It should do that and focus on maintaining high-end high pay jobs.

Conclusion

Gaining knowledge of the China Development Model was indeed an eye-opener. Initially, I was for the idea that an entirely low-end manufacturing hub was influential to the economy. Still, by observing previous statistics, a high technology and high paying jobs environment are the best for the economy. High technology guarantees high-quality goods and saves on time. It is also efficient as it puts the country's resources into good use. China can explore high technology, given its resources and skills. The low pay manufacturing hub should be done away with entirely as it is proving to be more costly than it should be.

References

Cheng, C. Y. (2019). China's Economic Development: Growth and Structural Change. Routledge.