In your opinion, what factors could threaten the predicted growth noted in (i) including environmental factors and global manufacturing economy.
In order to achieve the target of 6.5-7% growth in 2016, China has to surmount several obstacles. The face of sluggish global economy is one of them. China has to shift the focus of strategy makers from merely exports and manufacturing to internal consumption and development. There is inbuilt need for establishing small and medium sized businesses to generate employment. China with its huge population also has issues like unemployment and misallocation of labour. In order to have sustained growth these issues are to be tackled.
Other factors threatening the growth of Chinese economy are need with the use of superior technologies and innovation for increased productivity. Sticking to the traditional methods of manufacturing would be an obstacle to the country’s progress. The people’s trust in home based savings is also one of the hurdles in making its economy free flowing. Accumulation of cash does not permit the financial systems to lend appropriately. The government has to make its financial system robust for a sustainable development and economic growth.
There are some other areas which get influenced by the economic development. In China the environmental factors getting affected includes the sharp increase in consumption of natural resources. The demand of natural resources like water, energy and land has risen profoundly in the recent years. To gratify these demands there has been substantial razing of the forests, which has lead to further Complications in the environment. China faces devastating effects like desertification, loss of species and floods. Along with that, the mismanagement of household and industrial wastes and emissions is also one of the threats for China. China is facing severe air and water pollution problems. In the recent years, China due to its environment and industrial regulations and practices has become major global contributor to the environmental issues. It has majorly contributed to problems like ozone layer depletion, acid rains, loss of biodiversity and global climate change.