Article Crtique

China 's Economic Challenges

Article Summary

The economic article China 's Economic Challenges : Insides China 's Economic Boom ' sheds light on the newest economic challenges and the problem of middle class emerging . The article summarizes that nowadays China became the world 's fourth-largest economy with gross domestic product of 2 .3 trillion . During last decades the annual growth of China economy was about 10 . Many economic issues benefit from such economic boom whereas some industries are suffering (Lim 2006

It is necessary to mention that nowadays Chinese businesses face serious

big-budget challenges from multinational corporations , because they are willing to conquer ' millions of new customers in China . Chinese homegrown manufacturers have to struggle seriously and even cruelly with them in to remain competitive and to keep their markets overseas Many industries ask : Whether increasing wealth is bringing political change to the communist nation (Lim 2006

The article takes into consideration the manufacturing industry and admits that it plays a really significant role in China 's economic juggernaut . Nowadays the manufacturing industry accounts approximately for almost two-thirds of economic growth . According to the author the industry accounts also for more than one-third of gross domestic product . The economic rise in China is considerably affected by the manufacturing town of Qiaotou (Lim 2006

The article also mentions the impact if construction on economic boom and it is noted that China is reinventing itself with an orgy of it (Lim 2006 ) The emergence of middle class in China is able to hasten significantly the development of civil society . Middle class impacts positively the development of democratic processes in the country (Lim 2006

Economic Issues

According to the article the purchasing power of this emerging middle class is great and the power leads many Western multinationals to rethink their products with Chinese characteristics (Lim 2006 ) The rewards are great if to operate in Chinese markets . Nevertheless the costs of running businesses there are also immense . Nowadays many companies invest millions in to research and to create new products to crack the market and to attract new customers from middle class . It is apparent that emerging of the middle class influences the economic boom and even intensifies it (Lim 2006

Nowadays the town 's residents have become richer as they have set up their own button factories . For example , as it was mentioned in the summary Qiaotou is dominating in the world market in buttons . Their success is evident and can 't be ignored . It is necessary to mention that the reasons for success are mostly due to new technology , because it provides the customers with the opportunity buy the products using Internet , telephone or fax without leaving their homes . Nevertheless Chinese manufacturers succeeded in saturating markets in spite of low-tech labor-intensive products face many challenges , because the competition is told to be fierce and new button factory owners tend to diversify into other related fields (Lim 2006

According to construction issue the article notices that developers have invested more than 20 billion...