China’s reform initiatives which were have been in place since 2013 are in direct response to the structural changes of its economy. Promotion of private investments, higher-value exports and efforts to penetrate new emerging markets are real objectives of the Chinese government. Social inequality? That is not a problem unique to China, claims the mckinsey.com website. Let’s see what is often claimed about China, but however, is not quite accurate.
China has not turned itself into a sustainable economy
This belief is inaccurate. Sure, there are some shortcomings when it comes to China. One of the most striking is that Chinese legal system does not guarantee support for property rights standard in more advanced countries. China is also believed to have captured the bulk of its market value solely from cheap labor and heavy foreign investments. But these factors are shrinking. The share of state-owned enterprises providing industrial output still keeps dropping. In 2011, only 26 % were owned by the state. A willingness to intervene pragmatically in the market certainly doesn’t imply backwardness.
Chinese economy doesn’t innovate
Many academics and journalists keep saying that China has only a limited capacity to innovate. However, current innovations are bringing growth to many manufacturers especially Chinese digital leaders such as Alibaba (in the field of e-commerce) or Xiaomi (in the field of smartphones) both are highly innovative players. Innovations in science and engineering are expected since annually there are over a million graduates in these fields.
Environmental damage is too vast
Although China got things wrong in the past, it is getting better. A considerable amount of money is being spent on abatement efforts. Reduction in coal use and emissions are in place.
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