This paper examines three critical problems threatening China's long-term development: water scarcity, currency policy, and drug abuse. It outlines how geographic imbalances, pollution, and wasteful irrigation strain China's water supply, particularly in the northern provinces. It then analyzes how China's undervalued Yuan has created trade tensions with global partners, and how the country's growing drug epidemic—especially heroin use among youth—undermines social stability. The paper reviews existing policies addressing each issue and offers recommendations, emphasizing that sustainable solutions require tackling root causes such as poverty, education gaps, and inefficient resource management rather than short-term fixes.
China is still regarded as a developing country, yet its rapid growth has placed it in a position to compete with the top players in the world economy. With the advancement of technology and globalization, China has been able to communicate and conduct business around the globe, enabling the country and its people to benefit from prosperous partnerships. Although China has advanced to a top position in the world economy, the country also faces severe problems that could threaten this position in the long term. Chinese officials and businesses will have to give urgent attention to issues such as water shortage, the economic strength of the local currency, and the drug problem if China is to sustain its long-term success.
One of the most significant impacts of China's rapid development has been on the environment. In addition to severe pollution, one of the most threatened natural resources in the country is water. This limits not only the ability of individuals and households to remain economically viable, but also, on a larger scale, businesses. Industrial and agricultural output is already constrained, according to The New Agriculturist (2004).
One of the main drivers of this shortage is China's geography and population distribution. It is estimated that 44% of the country's population lives in the northern and north-eastern provinces, where 58% of its cultivated land is also situated. Yet only 14% of total water resources are found in this region. Compounding the problem is the state of the country's rivers. Irrigation for crops and dams for flood control have severely impacted China's waterways. The Yellow River, for example, has dried to the extent that its water no longer reaches the ocean for approximately 200 days of the year (The New Agriculturist, 2004).
Global warming has also contributed to rising temperatures, which could further damage water resources and crop production. Harvests have declined and water levels have dropped, partly because cities are favored in terms of water supply. Wastage and pollution present additional challenges. A large amount of irrigation water is lost to evaporation, and water pollution worsens the crisis—China's total emission of organic water pollutants equals those of the United States, Japan, and India combined. Water quality is not only poor; in some regions, it is even poisonous.
According to Barr (2010), a second major problem China faces is its economy, particularly in its trade relations with the rest of the world. At the heart of the issue is China's use of a weakened local currency, the Yuan, to derive advantages from its exports. Trading partners such as the United States and European Union countries have argued that this practice provides China with an unfair and unsustainable economic advantage. While the undervalued Yuan has contributed to the country's rapid economic growth, China will need to change this approach to maintain not only its growth but also its economic health. A pressing concern is the country's vulnerability to fluctuations in global demand, which has diminished as a result of recession and mounting debt.
Finally, one of China's major problems is drugs (Beech, 2006). According to Beech, there has been a steady increase in the culture of drug use in the country, particularly among the youth. At the time of writing, more than 80% of Chinese under the age of 35 were identified as drug addicts, of whom more than 70% were heroin users.
There are several reasons for this problem. One is a national consciousness responding to a relatively newly found freedom of choice, with drugs representing this freedom. Another reason, according to Beech (2006), is a corrupt system that encompasses police officers, the law, and rehabilitation centers. Although some individuals within these institutions sincerely attempt to address the problem, most are either overwhelmed by its scale or tempted to become part of it. Adding to the crisis is the desperation of poor communities whose only perceived option is selling drugs.
There are currently some policies in place to begin addressing China's water problem. Modernizing the country's irrigation system has been proposed as one possible solution (The New Agriculturist, 2004); however, the cost of upgrading farm irrigation across the entire country is a significant deterrent. Still, the government recognizes the urgency of the situation. One initiative under development, according to The New Agriculturist (2004), is a water diversion scheme that would link the water-rich south to the water-scarce north. This project involves the construction of canals that will also carry water from the Yangtze River to the Yellow River, which is slowly but surely drying up.
"Rising heroin use and systemic corruption"
"Existing government responses and their shortfalls"
"Proposed reforms for water, economy, and drugs"
The New Agriculturist. (2004, September). China's water problems. Retrieved from
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