Economic status of China

Essay by cansisHigh School, 11th gradeA, November 2004

download word file, 3 pages 3.0

Overview: Because of china's want for rapid economic growth, it has changed its structure of the state owned enterprises not only the enterprises but also the whole economy, due to this change the unemployment rate has sky rocketed. Although china's economist expect that 2 to 3 million jobs will be created through China's entry to WTO (world trade organization) But through that process of entry the change again will create more jobs lost then created.


· Urban unemployment rate approaching 10 % at 2001

· Between 1998 and 2001 state owned enterprises is responsible for firing 25.5 million workers, now 16.8 million of those workers have been reemployed.

· China's 2001 position include 17.5 million workers have been laid off by state owned enterprises expecting to rise to 20 million by the end of 2003

· 3000 large and medium sized state owned enterprises would hit bankruptcy within 2 to three years.

· The entries to WTO will double the official urban unemployment rate over the next few years making around 30 million unemployment boost.

· An increasing downward trend in employment although the GDP has not decrease rapidly. 1998 GDP up 7.8%, unemployment rate 6.4%. 1999 GDP up 7.1% unemployment rate 7.4%, 2000 GDP rate increase 8%, unemployment rate 8.2%, 2001 BDP rate increases 7.5%, unemployment rate 9.3%, 2002 BDP rate increases 8.0% unemployment rate 9.9%, 2003 BDP rate increases7.5% and unemployment rate of 10.2%.

Reason for unemployment problems:

· Entering to the WTO means that we have opened up our markets for competitors, different sectors of Chinese firms will be differently effected depending on their efficiency and importance, the disadvantaged industries include the natural resource-intensive industries, capital-intensive industries and technology intensive industries, other industry such as the labour intensive industry will be in big advantage. Local enterprises...