By Michelle Scott
The status of China's economy has become a big interest to many groups around the world. Foreign investment groups and venture specialists are eager to do business in untapped markets in the world. Multinational companies are anxious to expand their influence in various industrial areas, as are Western governments, and humanitarian groups are hopeful that an open China leads to the improved living conditions of all of China's people and not just a select few.
Privatization
Privatization is one of the economic factors enabling China's reforms to push the country forward toward modernization and growth. One major improvement was the privatization of state-owned enterprises (SOEs), resulting in millions of people who were let go from their SOE jobs finding new careers in private companies. The privatization trials of entertainment and performance groups have been going on since 2003, and have had positive social and economic results. According to English.sina.com, in July 2009, the Chinese Ministry of Culture informed all municipalities, provinces and autonomous regions that they would be required to complete at least one privatization each by the end of the year, stating that they expected most of the groups to be privatized in 2010 or shortly thereafter. The performance troupes have also been informed that the government will continue to fund their operations until they are able to operate on their own, but advised the groups to begin seeking out other forms of funding as soon as possible.
Urbanization
Urbanization efforts in China have been focused on converting 45 percent of China's rural population into permanent city dwellers. The rate had reached 43 percent by 2005, and, according to Shahid Yusuf and Kaoru Nabeshima, authors of "China Urbanizes: Consequences, Strategies, and Policies," economists believe that the number could surpass the 60 percent mark by the year 2020. To accommodate the rapid urban spread, experts contend that a successful growth rate in industrial endeavors will be mandatory in order to maintain new urban living standards and incomes. Failure to meet economic growth markers could lead to the development of low-grade housing areas and even slums.
Technology
Another economic factor lies in the growth of technology companies such as China Mobile, the world's largest provider of mobile phone service, who have initiated talks with Google to begin providing Internet service through the China Mobile network. China Mobile acknowledged that the growth of Internet users had the potential to increase from 100 million users to over 400 million, if they could secure a way of providing Internet service to the 4 million new mobile phone users that joined the network each month. China Mobile's buy out of China Resources People's Telephone in Hong Kong was a successful merger that has resulted in a 50 percent decrease of operating costs, due mostly to the cooperation that has developed between the two companies. However, the company also experienced a 3 percent drop in its share price.
About the Author:
Michelle Scott is a graduate of DePaul University, and holds a Bachelor of Arts degree in business finance. She has been writing about various topics for 13 years, and now works in New York as a freelance writer and artist. Scott also applies her writing skills to academic summations.
