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China’s Uprising and Imminent Stagnation
Many newly industrialized Economies(NIEs) all over the world are up and coming economic superpowers thanks to their accelerating economic growth of 10percent a year on average, as well as various comparable advantages(CA) they have that draw large amounts international investment. One of the most prominent NIEs in the twenty-first century was China. China's economic success, dubbed "The China miracle" has been happening since 1978 during the wise leadership by Deng Xiaoping who implemented the highly praised "Open the Door Policy". The increased volume of international trade of China with the rest of the world, developing natural harbors, which were the most lucrative export destinations like coastlines such as Shanghai, Zhuhai and Shenzhen. The industry of agriculture was a major employer of more than 70% percent of Chinese workforce at the time, was liberalized and barriers to trade and import tariffs were eradicated. This was a huge advantage to the phenomenon of globalization by making the most of the lucrative exchange of goods and services. In the years since 1978, China has enjoyed a remarkable growth, averaging 10% or more per year during the period between the 1980s and the 2000s. China's impressive economic performance was thanks to deliberate creation the Special Economic Zones(SEZs) in addition to Export Processing Zones(EPZs) by the government in places like Shenzhen, Nanjing, Pearl River Delta and the Wenzhou manufacturing hub in the east. These geographical zones are focused in export-oriented industries, and bureaucratic red tape is cut down, as well as up to 50% tax refund on profits during the initial five years and other economic incentives. Visit:- https://darioitem.press/ As such these zones are now among the top investment spots in the world and have been able to secure the 2.d most foreign dollars invested for a number of years in a row, just behind the USA. More than 300 of the Fortune 500 companies and Transnational Corporations(TNCs) have operations there as well as Haier, Huawei, Infosys, Dell, Hewlett-Packard(HP), IBM, Honeywell, Toyota, Apple(Foxconn plant) and many more. Since these zones have been able to bring in large amounts of foreign investment by the billions and more, China's "factory in the middle of all the earth's" position and significance around the globe is generally recognized. China's large number of 1.3 billion also provides it with the economic CA of extra labor at low cost for wages. Workers at Foxconn are employed for 10 hours every day for six days of the week. They are paid US$0.50-$2 per hour. Therefore, production costs are comparatively low in comparison to the profits earned which allows companies to make huge supernormal profits. Not only that, as of the 21st century, qualifications f Chinese workers are jumping, with many with respectable degrees from prestigious institutions like Zhejiang, Peking and even agricultural(Nongmin) universities. Foreign investment is pouring into high-tech sectors like electronic programs, software, pharmacy sciences and Research and Development(R&D) that makes China the perfect R&D hub. So, overall, their diversity of workforce has allowed them to cover menial to high-tech sectors, giving the country an edge in economic growth and a competitive edge that only a few economies are enjoying. But, despite that China's gradual rise to the position it has today has its own set of difficulties. One of the biggest challenges is that the country is losing their "factory of the world" status. The number of workers is declining and wages rising at a steady 17% a year, and the expected increase is to rival those of US minimum wage in 2030. Because of their One-child policy from the 1970s The Wenzhou hub is missing around 1 million people, and the pearl River Delta is short of 2 million. In contrast, the whole country is facing a shortage of about 4 million workers. However, productivity isn't measuring up because wages are rising too quickly with the exception of Guangzhou it has risen up to more than 1000 yuan a month from just 860 dollars per month. Therefore, more and more TNCs find it beneficial to recruit local workers and create modern technology in China to benefit their customers, like General Motors and Ford who have both relocated their operations to their native USA. Another challenge is the rising awareness of the absence of corporate Social Responsibility(CSR) in China. Today with social media increasing, consumers are paying attention to human exploitation or abuse, as well as the pollution issues in China's EPZs, which harm the social welfare of the citizens, and are demanding that TNCs show more respect for the environment through sourcing suppliers who provide workers with respect. CPI (Corruption Perception) Index(CPI) of China is around 7.1 and is one of the highest in the BRIC category, with the exception of India ahead. Since then, foreign investment has been decreasing with a steady increase as it did around 3% from 2011-2012. More firms realize that consumers will boycott specific products that make use of the illegal exploitation of human labor. The lack of environmental regulations has led to Beijing's air quality to have toxic particles of 331 parts per million(ppm) which is more than that of the WHO organization(WHO)'s standards for safety an astonishing seven times. Only 1% of the people living in Beijing are breathing clean air, according to research and studies carried out. As such these issues have caused public outrage and firms attempt to satisfy the demands of the public make the decision to shift production to another location. There is no denying the fact that China is facing extremely strong competition from the other BRICs, in particular India which is expected to surpass China's population of 1.3 billion in 2035. India's Gross Domestic Product(GDP) per capita is also rising and is the largest language-specific country and also the second largest source of engineering science graduates. As the back-office capital around the globe, many businesses like Dell have outsourced such tertiary functions to them, creating more profits than manufacturing industries. The Shell Technology Center Bangalore(STCB) is an example of India's ability in R&D and in the sciences as many agencies have declared it the next R&D hot spot. In the meantime, China has been emphasizing on lower-revenue manufacturing of footwear, textiles and other related industries. In the long run they are likely to lose to India on this issue of having a well-trained , dynamic workforce that is able to adapt well to the changing needs of the modern day worker.

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