Development directions of China in face of global competition

Abstract

Content of article touches upon changes undergoing in Chinese export and its relation with current changes in its economy. While it might be hard to interpretate Chinese data, due to it’s totalitarian nature, export which requires involvement of external partners is more reliable data source. By performing analysis of current changes in Chinese export, one can better understand decisions made by central government and reasons behind them. Demographics changes, growing cost of labour and current state of international politics affect PRCs industrial output. As stated in article, Chinese population is undergoing changes and becoming increasingly old and its work force which is shrinking is soon to be joined by general population. This trend is hindering economic growth. In addition to this internal pressure less developed countries, are becoming increasingly competition in older fields in Chinese industry, mainly textile. This prompted decision on prioritizing high‐tech industry, this met with hostile economic response from developed countries hindering this effort. Legacy of one child policy is putting economy of PRC in uneasy to position.