Capitalism in China

Is China's economy growing too fast and if so, what does that mean to its people?

In a Washington Post article on January 26, writer, Peter S. Goodman states, "Over the past decade, China's output has more than doubled in size as the country's transistion toward capitalism has progressed, turning farmers into factory workers and linking the fortunes of its people to the appetites of shoppers in the United States, Europe and Japan."

What does this mean for the Chinese? Some analysts argue it will cause a rise in unemployment and a depletion of resources. Farmers are now turning to factory jobs. This has the potential of hurting the agricultural society.

These factories are also increasing tensions on trade with the United States. There have been a series of uneeded plants being built in the cities, and Chinese officials feel they could lead to falling profits due to the deflation. They also fear that companies will lose incentives to invest. People will then start losing their jobs and a rise in unemployment will hurt the economy even further. Japan has faced this problem for "much of the past 16 years."

With a strong desire to choose what to do with their lives (whether they actually choose or their parents choose for them), citizens are turning away from jobs the government may try to impose on them. They are finding what they (or their parents) like. Does this mean that some jobs will become too popular, and will other jobs fall short?

For example, China has too many people who want to be nurses. While the U.S. is facing a shortage on nurses, China is facing a plethura. They are now being urged to pursue the career, but plan on moving to The United States, Great Britain, or China. Nursing schools are teaching them English and Japanese to help them make the transistion. There simply is not enough room in China for all the nurses.

Under Communism, the people had little concept of personal property. Now with the rise of capitalism, people are realizing how much more they can have. "Local governments want to build science parks and subways and people want to build houses. And now [Chinese authorities] are actually letting stuff get built again." But is it too much? There may not be enough room.

Is this idea of personal property actually going to hurt their economy? People want to build houses, but they also want to work in the city. Unfortunately, there may not be enough room in the city for both houses and new factories. This may build an elitist attitude for those who are actually able to pursue the dream.

Obviously this economic growth and shift is making an impact on the Chinese people, but what about foreign countries? What does this mean to the United States for example? "China's economy grew by 9.9 percent last year." Its economy has now passed Great Britain, France, and Italy. China's economy is now the fourth-largest.

This shift from Communism to Capitalism may be what we (and others) have wanted for years, but we may not like it when their economy passes ours.