The journey to growth for any nation is not an easy one and is neither a work of just one individual or a factor who made it happen. Many factors work together to make way for the nation towards increasing growth rates in the country. And the same goes for China.
China’s economic growth has increased rapidly over time because it was determined to choose ways that would accelerate the country’s development. It has led to increased growth rates and a wider economic reach for the nation. Many factors worked well for China to achieve the level of economic growth it has today. Some of the factors which played a significant role in the same are stated below:
Labour supply
China has the benefit of the availability of sufficient labour supply. It is because of the technological development leading to the mechanization of the agricultural sector, which left many people unemployed. It further led to the migration from the rural to urban areas in search of work. When aligned with the effective re-planning schemes implemented by China, this additional labour led to increasing economic growth for the country.
Female participation in the workforce
Another benefit that China has is participation by the women in a workforce at a level above the average. The available opportunities and the One-Child policy in China well maintained the status of the involvement of women. This policy ensured less time spent on raising the child and thus, more focused and increased participation in contributing towards China’s economic growth.
Strong leadership
China has had growth-oriented leaders in the position of power who framed and implemented policies that would ensure that the growth rates increase at a rapid pace. Thus, strong leadership is also one of the significant factors which have led to economic growth.
FDI
FDI (Foreign Direct Investment) played a critical role in pacing up China’s economic growth in the initial stages. The SEZs (Special Economic Zones) in the country attracted a lot of investment because of the relaxation of government control and regulations these areas offered, serving as an environment best suited for business opportunities. Free market economics added on to this peed of growth.
Investment in infrastructure and education sector
China has correctly identified the role the advanced and well-maintained infrastructure and the educated population of the country could play in making a significant contribution towards increasing the nation’s economic growth. It is the reason why robust construction programs have been funded, considering their long-term benefits. And the literacy rate in China has also increased rapidly, with better educational opportunities available for the people.
Economic diversification
The decision to step into other domains of research to diversify the economic reach has also helped increase China’s economic growth. It is why a significant amount of investment has been made towards the country’s labour and capital sectors.