Since Economic Globalization has been prevalent from the 1990s, competition among the countries in the world is increasingly intense.
China quickly caught this chance and became the largest economic body through the plan of innovation. In the past few years of development, the Gross Domestic Product (GDP) of China has doubled and been dramatically increasing, which left many European countries behind. However, apart from the rapid economic growth, what also brings to China are serious environmental issues and much inequality lying between rich and poor. These are a blow to the sustainability of China’s current economy, which is expected to be solved. Whereas, fortunately, China is now trying to address the problems and has a strategy to deal with it. In addition, China’s economy is more likely to benefit from the reform from imitation to innovation. Therefore, China’s economic growth is sustainable.
China’s economic growth seems not to be sustainable due to the sacrifice for the environment and economic inequality. Rapid growth causes environmental damage (Febrero 2013). For example, there was massive smog found in Beijing’s air and acid rain produced by a burn of coal accounts for 30% of the total pollution. This also becomes a competitive advantage that manipulated by western countries (Rosen 2011). In addition, a low-interest-rate policy that adopted by the government brings no benefits to citizens who are transferred from farms to cities (Amadeo 2019). As a result, a number of households have low income and consumption cost. So if such phenomena are not properly rebalanced, the demand of people will be largely dragged down.
On the other hand, it suggested that China has set up conservation for the polluted environment and narrowed the income gap to keep sustainable. The government took environment crisis as a priority and has implemented a large variety of laws and policies regarding the issue (Febrero 2013). For instance, since reform in the late 1970s, it has been concentrating on the stronger power of regulators and executive force. Besides, the government clearly released interest rates and decided to develop a market-faced policy (Barboza 2012). These actions significantly change the imbalance that was blocked by badly vested interests then expanding the sources of people’s demand. In the past, it possibly is the failure of policies that make urban earns 3.5 times more than rural does and a large number of people were still living in poverty (Biswas & Hartley 2018). However, an event named ‘poverty alleviation’ saved them and left only 3.3% of the population below the poverty line (Amadeo 2019).
Additionally, China’s economy tends to execute a high-speed strategy from imitation to innovation with far more reforms than the past. Fast-moving innovators injected new strength into the present economy (Dutt 2018). They have a rapid prototyping process which needs to approach customers and fulfill their requirements then creating better products. Moreover, the innovators can’t produce at the first beginning all by themselves. They need to change from copying to fit for purpose (Mckern 2016). First, they copied from others’ products at a much lower cost. Gradually, governments will bring various products that highly developed into the market. It was well illustrated by King in 2014 that a lot of medical facilities were imitated from western countries in China because technology condition was not standard yet. However, a few years later, the innovators had the ability to create medical devices on their own. Also, clinical researches can be carried out without foreign major research organizations and nearly 80% of drug-eluting stents sold in China are completely local manufactured. Furthermore, there is one way left to make China an innovation engine which is seeking new knowledge abroad instead of seeking new resources (Mckern 2016). For instance, over many years of international expansion, Huawei has constructed a global network, developing 36 joint customer innovation centers. With other major Chinese telecoms company ZTE, they are constantly among the top 10 patent filers per year in PCT application process.
In conclusion, China’s economic growth is definitely sustainable. Despite there probably are environmental deterioration and income inequality between rich and poor during the economic fast growing progress, China’s government has made a new policy aimed at tackling such a difficult situation, concentrating on environmental protection and equal shared prosperity instead of blindly increasing GDP. Furthermore, China’s economy is changing from imitation to innovation in order to maintain its sustainability. For the future growth of the economy, reforms and innovations are super necessary for the consideration of long term development and it can not only save the environment but also keep GDP grow steadily. China can do even better than now and start a new era.