The Economic Growth of China and Decline of the West Essay

The Economic Growth of China and Decline of the West - Essay modelingIt is also quite possible that China may never overtake the west because its population growth is set to fall in coming years, and this entrust reduce sparing growth greatly. For instance, Due to Chinas policies to control their large population such as the one child per family policy (Qian, 2009), sterilization of people who have two children (Scharping, 2005), China will have a large population aged over 65 years old. Its on the job(p) population will, therefore, reduce resulting in slower economic growth due to reduced labor, hence lower GDP. The countries in the west have a unconstipated and almost constant growth in population. There is, therefore, an assurance that the human capital will always be available to work in the industries and sectors to increase production (Weston, 2004). Thus, this gives the west a competitive edge of China now and in the future.Chinas political instability to some degree ho lds its economic growth. Politically powerful state-owned enterprises and state-controlled banks resist internationalization of their currency, the Yuan. Being government agencies, they usually have control over the policies that are made. Private business groups that shop financial liberalization, usually have zero to weak influence on the Chinese policymaking (Weston, 2004).