Thursday, 5 August 2010

China - The Power

China continues to develop and has become the largest producer of greenhouse gases, thus putting the rest of the world and themselves into a slightly greater environmental peril. This is a claim of those believing the climate change to be the end of humanity even though it has been demonstrated by scientists that this will not be the case.

However action still needs to be taken and which path should China guide itself upon? The current argument from the China Premiership is that they have the right to industrialize and develop in the same way the western world did and at the same rate, and thus cannot be advised by those that caused this climate trouble. However a western angle would appear that lessons are to be learnt from such mistakes made by the western world. Although mistakes are not directly admitted it is apparent that the science and reasoning that is at present was not available when the western economies were developing thus not giving them options.

China's development is now out of character from its history of self containment as its economy and exports increase into a dependent western world. These exports are made possible through the economies of countries such as Australia. 64% of exports from Australia end up in China thus making a large part of Australian economy dependent on China's continued development.

In the coming decade China will face workforce problems. 90 million people joined the Chinese labor force in the previous decade compared to 5 million in the current decade, and effect of China's social policies. This could be a large part of a slow-down in the growth of the Chinese economy which would subsequently result in impacts of exporters of strong economies such as Brazil and Australia. Australia has avoided recession of any kind for 17 years now, and China will appear to have the power to bring that to a sharp end as it decides to care for its population.

So China, in the eyes of the foreign, have a large responsibility for the economies of others, their own and the environment. The most interesting question will be if they decide to take the same route that the western world took or will they take a more moral stance of doing what is right for 6 billion people and not just themselves.

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