Tuesday 10 May 2016

Could any other economy copy the Chinese miracle?

North Korea recently held a party congress. People had previously expected North Korea to announce opening its economy during the congress, the result disappointed many people. However, if North Korea decided to open its economy, would it be able to copy the Chinese miracle? My answer is no. I believe that the Chinese miracle is very unique that it could only happen in China. The factors that cause the big leap of the Chinese economic growth are unique. Firstly, the Chinese population is big enough to provide cheap labor force. Secondly, the Chinese has many ports to transport goods around the world. Thirdly, China had a very good relationship with Japan and was able to borrow from the Japanese banks and received orders from the Japanese companies. Moreover, the Japanese companies had helped to establish many manufactories in China as well. Fourthly, China has a stable and secured political environment. In addition, the single-party politics in China ensures that any policy established by the central government will not be easily replaced or abolished. These political factors reduce the political uncertainties for the foreign and domestic investors. In conclusion, I think the Chinese success is unique and could not be copied by other economies.

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