Effects of Economic Growth in China

Running Head: CHINESE SOCIETY
EFFECTS OF ECONOMIC GROWTH IN CHINA
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“In the year 2017, China's economy produced $23.12 trillion, based on purchasing power parity. It's the
world's largest economy. The low living standards, labor and production cost allows companies in China to

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pay their workers less and save more compared to the other parts of the world. That makes produced
products less expensive, which lures many more overseas manufacturers to outsource jobs to China as well.
Due to the increase in the economy, Chinese entrepreneurs like my parents are able to have greater
opportunity for business, have higher living standards and provide better education to the children. I am also
benefiting from this. For example, I was lucky enough to have the opportunity to study abroad (in New
Zealand) to broaden my view and knowledge of the outside world.” After comparing the rich countries with
their own history, there is a notable difference in the standards of living. Research shows that there has been
an increase in the standards of living across the globe in the past 100 years. While the life expectancy of a
person born in 1980 in Japan was 35 years old, today the life expectancy has gone up to 83 years old. my
parents in China have a life expectancy of 70 years and this change from 40 years in the second half of the
21st century (Kwan & Cotsomitis, 2014).
In China, there has been much reduction in poverty level and this has been noted due to the increase in
the GDP per capita from the 1970s to 2000 showing that the average person is getting richer over time. my
parents have had the opportunity to access resources and hence increase their income through the businesses
they run and finally this improved their way of life (Tsen, 2016).
As a result of an increase in the economic growth, I will also be required to further my education here in
New Zealand so as to keep pace with the growing economy in China. This is because as the economy grows,
and the GDP per capita increases, there is a need for my parents to invest their money on education through
buying me educational materials and also they should open programs to have more and more children access
education at all levels (McKinnon, 2013).
As a result of economic growth in China, my parents bought a vehicle that would supply the goods to
their customers from door to door due to the improvements were done on the transport systems; customers

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get their goods very easily. They can also order goods just by the use of mail or just telephone calls. The
security sector has benefitted since electricity is in every corner of the country and this has increased the
living standards of the common man (McKinnon, 2013). People in the rural areas have also been able to
access water easily and various technologies have helped in ensuring that every person has an income
earning activity.
Due to the improvements in the economic growth, my parents were also able to afford cash to cater for
expenses on food that I eat, build a good house and also buy me some clothing. This will automatically
enable them and I live longer. Access to improved health, food, and shelter will keep poverty at bay and
hence malnourishment in children will remain a history (Tsen, 2016). Due to an increase in income and
improvements in the health sector, the life expectancy of the Chinese people will continue to increase over
time. My parents spent very little on healthcare since they have better quality care and are better in the
utilization of the health services. I am able to spend more on my health since my parents are capable of
raising resources and the government has provided policies on sanitation and improved the medical
technologies.
However, economic growth in China has brought about a creative destruction on the old structures of
the economy as it tries to create a new economy. Some of the individuals in the economy will end up being
worse off. Due to the introduction of new technologies, my parents might face a destruction of their well-
being since firms may come up and overtake their small businesses hence rendering them jobless. The
structure of production in the economy might also change from agricultural and production to provision of
services (McKinnon, 2013). A good example is for the case of United States whereby at the start of the 19th
century, an approximate of 90% of the population was based on agriculture.in the second half of the same
century; about half of the population had shifted from agricultural production to manufacturing industry.