China has showed a remarkable and astonishing economic growth in the past 20 year's time. The growth rate of the Chinese economy marked by the International Monetary Fund between the year 1990 and 2010 states to be of 9.6 percent every year on an average count. This is unprecedented in the history of China.
In the year 2008, the financial crisis brought in a lot of pressure and collapse of exports in China triggering the base thus bringing instability in the political field that lead to countless revolts too. Many thought that this might lead to the downfall of the fast growing economy in China. Fortunately, the predictions were upturned and China surpassed the pressures to come out as a rising power with rapid growth.
The two major reasons that lead to China's rise in the last 20 years are as follows:
Waning fertility rate of the country.
Rising urbanization.
These one-time bonuses resulted in stimulating economic productivity to a greater extend. The fall of fertility rate was successful after the introduction of one-child policy in the year 1979. Therefore the country had to concentrate on fewer children during the 1980s and 1990s with limited resources. At the same time, with this new policy established, housewives and the others who worked in the farms now contribute to the boosting GDP figures of the country by working in the money economy. But the fertilization rate will not fall even more as this one time boost has its own limits and China cannot insist on having zero-child policy.
Urbanization was yet another feature that boosted up the economic growth of China during the past 20 years. GDP is greatly increased by urbanization as the population in the city move out of their houses to be employed receiving a fixed monthly income. On the other hand, people living in the outskirts of the city are more into farming and other similar activities. Urbanization is a process with natural limits like fertilization rate. Even though the urbanization level of China is in no way equal to that of the West, the growth is unprecedented with a steady rise and no fall.
If the resources from the last 20 years are taken, the transformation from agricultural resources to that of energy rigorous industries like cement and steel is a wonderful development. During the year 1978 famine was a great worry in China and then the farmers were asked to "catch their breath" that lead to increasing targets, prices and finally they emerged with marvelous results. By 1980, farmers were seen with a smile on their face, cash in the pockets, more time in their work and the freedom to choose what they wanted to do. This money was put into what China was well known for, labor- intensive light manufacturing that leads to shaping the economy for the next 20 years. The greatest development was in the energy demand where the reforms lead to just 10 percent of the global energy demand in the year 2001 much lower than the 25 percent that was seen in the year 1978.
It is high time that China be treated as an ordinary country that outgrew after 200 years of suffering. China to dominate the world is just a fear that many countries have on the rising status of this hardworking economy. The country is more likely to aim at fulfilling all the requirements of their own population rather than establishing themselves as the super power of the world.