Chinese Economy Since Deng Xiaoping Essay

Download this Essay in word format (.doc)

Note: Sample below may appear distorted but all corresponding word document files contain proper formatting

Excerpt from Essay:

Lastly, the gender gap has meant that males need to engage in more intense competition for females. As a result, money has become a more important means of attracting females (Wei, 2009). These different factors combined to push more rural Chinese into the cities in search of better work. This in turn kept the cost of labor down, fueling intense economic growth that kept the unemployment rate in urban areas down. Even with the recent economic downturn, official unemployment rates for urban China were at just 4.2% for the fourth quarter of 2008, up from 4.0% in the previous quarter (Xinhua, 2009). These official figures have never fluctuated too much, although they were significantly higher in the late 1970s when economic modernization began, between 5-6% (Giles et al., 2004). It should be noted that the official unemployment rates belie the reality of China's economy, which features tens of millions of "floating labor" that moves from province to province following the work.

This rural-urban migration fuelled by the economic and demographic policies of the Communist Party of China have also had a significant impact on rural unemployment. Over 200 million Chinese have left rural areas since the economic reforms began. The percentage of people engaged in primary industries has likewise declined in that period, from around 70% to the 40% range. Moreover, the pressure of a male-dominated, one-child society has forced more rural Chinese, some 120 million of them, in to the floating labor pool (China Labour Bulletin, 2007). This pool may not be officially considered the rural "unemployed" but they are essentially rural workers displaced from the land by lack of economic opportunity. They pick up work in urban areas, but likewise are unlikely to be included in official urban unemployment statistics either, since that would require them filing for job search assistance from official government agencies.


It is sometimes difficult to separate the impacts of China's massive demographic shift from the impacts of the government's economic policies, since the demographic shift was itself the consequence of specific economic policy. What is evident, however, is that China has fuelled its economic growth with a surplus of workers born in the 1950s and 1960s. The generation that followed was significantly smaller, which has resulted in a number of impacts on the country's economy.

The pressures of the new demographic reality have increased China's savings rates among the working and placed significant unemployment pressure on the rural population. This population has now become the 120 million floating labor force that is seldom included in official employment statistics. That group, however, has contributed significantly to China's economic gain, since it is they who keep the cost of labor down, allowing for the rapid expansion of exports. This expansion, combined with the increase in savings rates sparked by the One Child Policy and lack of a viable social safety net, has fuelled China's rapid economic growth, which in turn has held unemployment rates in check, even in the rapidly growing urban areas.

Works Cited:

Hesketh, Therese; Lu, Li & Xing, Zhu Wei. (2005). The Effect of China's One-Child Policy after 25 Years. New England Journal of Medicine. Volume 353, No. 11, pp.1171-1176. Retrieved July 19, 2009 from

No author. (2009). Arguments-Trends. International Institute for Applied Systems Analysis (IIASA). Retrieved July 19, 2009 from

CIA World Factbook: China. (2009). Central Intelligence Agency. Retrieved July 19, 2009 from

Fan, Shenggen; Zhang, Linxiu & Zhang, Xiabo. (2002). Growth, Inequality and Poverty in Rural China. Retrieved July 19, 2009 from

Chan, Christine; D'Arcy, Melissa; Hill, Shannon & Ophaso, Frank. (2006). Demographic Consequences of China's One Child Policy. University of Michigan. Retrieved July 19, 2009 from

Wei, Shang-Jin. (2009). The Global Economic Implications of China's Sex Ratio Imbalance. Columbia University. Retrieved July 19, 2009 from

Horioka, Charles Yuji & Wan, Junmin. (2007) How China Achieved the World's Highest Savings Rate. Journal of Money, Credit and Banking. Retrieved July 19, 2009 from

Gupta, Anil & Wang, Haylan. (2009). Why the Export Slump Won't Doom China's Economy. Business Week. Retrieved July 19, 2009 from

No author. (2007). Labor Costs Rising for Chinese Textile Industries. Retrieved July 19, 2009 from

No author. (2009). Preparing for China's Urban Billion. McKinsey Global Institute. Retrieved July 19, 2009 from

No author. (2009). China's Urban Unemployment Rate Rises to 4.2%. Xinhua. Retrieved July 19, 2009 from

Giles, John; Park, Albert & Zhang, Juwei. (2004) What is China's True Unemployment Rate? Michigan State University. Retrieved July 19, 2009 from

No author. (2007). Unemployment in China. China Labour Bulletin. Retrieved July 19, 2009 from[continue]

Cite This Essay:

"Chinese Economy Since Deng Xiaoping" (2009, July 19) Retrieved December 5, 2016, from

"Chinese Economy Since Deng Xiaoping" 19 July 2009. Web.5 December. 2016. <>

"Chinese Economy Since Deng Xiaoping", 19 July 2009, Accessed.5 December. 2016,

Other Documents Pertaining To This Topic

  • Chinese Economy Xinhua Reported That

    While this investment has flourished to this point despite strained cross-strait relations, deterioration in the China-Taiwan relationship would threaten Taiwanese investment in China. Taiwan's firms have already been warned by their Ministry of Economic Affairs to increase their level of risk assessment on account of increased risk that China's government poses to Taiwanese investments (Central News Agency, 2007). More important, however, are the damaging effects on total FDI that deterioration

  • Deng Xiaoping and Modernization During the Cultural

    Deng Xiaoping and Modernization During the Cultural Revolution, Mao Zedong led a tremendously aggressive and transformative movement within mainland China that would forever change the face of his country and the people within its borders. Since the beginnings of Mao's communist China, there existed a powerful will amongst his supporters to remove the liberal bourgeois from Chinese society; the Cultural Revolution took this agenda to further, far more frightening extremes, in

  • Chinese Economy Great Leap v

    The problem was intensified by the fact that greater mobilization of Chinese workforce required greater amounts of food. While there were many factors, in a micro and macro level, that caused and intensified famines, the major cause was the "shock therapy" of the Leap initiated by Mao. Chinese population, the largest in the world, could not quickly adapt to drastic changes. The havoc wrecked by the Leap continued until

  • Chinese Village Democracy the Organic

    This rationale may prove correct to some degree, but only in those areas where the villagers have no means of communication between villages and thus no way of exchanging opinions and finding out about irregularities and breaking of the law. Kolhammer is pointing out that the declared official role of the organic law of Village Committees is only going to be put in practice after the villagers will be

  • Future of China Anticipating the

    When inquired to share their views whether it is going to be encouraging or damaging in case China assumed to be "considerably having more potential on the economic front compared to today, " in sixteen nations nearly the majority of 11 nations or a multitude of 5 nations witness it as encouraging. Prominently, this upbeat notion is seen in several nations, like Mexico of 54%, whose production sectors face

  • China s Economy the Sustainability of China s Present

    China's Economy The Sustainability of China's Present Economy The Sustainability of China's Present Economy In the past thirty years the Chinese economy has exhibited phenomenal growth, especially when compared to what the country had seen for the century before that. China has become a model of economic efficiency and stability. They have used different models to attain this through a graduated system that has been marveled at by the rest of the world.

  • Political Economy of China

    political economy of China explores the following issues and questions: When did Deng Xiaoping start China's economic reform? What were some of the motivations for his open-door policy? What achievements has China made since then? What are the major problems in today's Chinese political economy? Why is China not a democracy yet? The roles of Deng, Jiang and Hu's three generations of Chinese leadership in China's political economy. Deng Xiaoping's Economic Reforms Deng Xiaoping emerged as

Read Full Essay
Copyright 2016 . All Rights Reserved