The Economic Growth of China and Decline of the West Essay

The Economic Growth of mainland China and Decline of the West - Essay casefulIt is also quite possible that China may never overtake the west because its population return is set to fall in coming years, and this will reduce frugal growth greatly. For instance, Due to Chinas policies to require their large population such as the one child per family policy (Qian, 2009), sterilization of people who have two children (Scharping, 2005), China will have a large population sr. over 65 years old. Its working population will, therefore, reduce resulting in slower economic growth due to reduced labor, hence lower GDP. The countries in the west have a cockeyed and almost constant increase in population. There is, therefore, an assurance that the human capital will of all time be available to work in the industries and sectors to increase production (Weston, 2004). Thus, this gives the west a competitive inch of China now and in the future.Chinas political instability to some degree h olds its economic growth. Politically powerful state-owned enterprises and state-controlled banks resist internationalization of their currency, the Yuan. Being government agencies, they usually have control over the policies that are made. Private business groups that support financial liberalization, usually have zero to fragile influence on the Chinese policymaking (Weston, 2004).