China-New Zealand Trade: Seizing a Unique Opportunity: Chen Mingming Outlines China's New Development Strategy and Its Relevance to New Zealand

By Mingming, Chen | New Zealand International Review, November-December 2004 | Go to article overview

China-New Zealand Trade: Seizing a Unique Opportunity: Chen Mingming Outlines China's New Development Strategy and Its Relevance to New Zealand


Mingming, Chen, New Zealand International Review


The outbreak of SARS in some parts of China last year has produced a profound impact on the thinking of both Chinese policy planners and the public about China's development strategy. It came as a wake up call to China, as it revealed a major flaw in China's development strategy, namely, excessive focus on GDP growth at the expense of the public health sector. The SARS epidemic sparked off a national debate. The consensus that emerged from the national debate was that China's current development strategy, which features high energy and resources consumption but low efficiency in terms of output, is not sustainable, and that it is important to pursue a new development strategy.

China's fast economic growth is certainly no unfamiliar story. During the past 25 years, China's economy has been growing at a stunning rate of 9.4 per cent. No other country has come close in terms of economic growth. Along with the United States, China has become the twin engine of the global economy. But the question is: at what cost?

Nature has not been kind to China. Large as it is, China is deficient in resources. The country's per capita share of water is only 27 per cent of the world average; forest coverage, 20 per cent; mineral resources, less than 5 per cent; and oil, only 3 per cent. China has only 6 per cent of the world's arable land, but it needs to feed 22 per cent of the world's population. And that land has been tilled for several thousand years. As a result, it has lost much of its fertility. Excessive farming has also caused desertification to 18 per cent of China's land area and soil erosion to 38 per cent.

Sand storms have become increasingly frequent in recent years. Desertification and soil erosion has affected the life of one-third of China's population, and 55 per cent of China's land area is no longer suitable for human settlement.

China's economic growth is fuelled by heavy consumption of energy and mineral resources. Already, China is the world's number one consumer of coal, steel and copper and number two consumer of oil and electricity. China will soon overtake Japan to become the world's second largest oil importer. Last year, China produced 237 million tons of steel, more than the combined total of the United States and Russia. Annually, China needs to consume five billion tons of oil, coal, iron ore and other mineral resources to maintain its economic growth.

Old problem

Inefficiency is an old problem plaguing China's economy. Last year, it consumed 40 per cent of the global cement output, 31 per cent of the coal output and 7.4 per cent of the oil output. Yet its GDP accounted for only 4 per cent of the world total. And China's per capita productivity is only one-fifth of that of the developed countries. Obviously, it is high energy and resources consumption rather than technological progress that has contributed to China's economic growth.

Another problem is that too much investment has gone into the real estate sector. The overheating of this sector is a key factor causing the excessive growth of China's economy. A lot of money has been spent on luxurious housing projects. This has diverted much needed resources from the public sector, such as public health. In 2002, public health expenditure took up only 2.7 per cent of China's GDP, which was low even among the developing countries.

Clearly, this mode of development has to change. The biggest challenge facing China now is to ensure that its economy grows in a sustainable and coordinated manner and that proper balance is maintained between economic growth and environment conservation. And what is being done by China to meet this challenge? The answer is a five-prong new development strategy adopted by the Chinese government.

Lower growth

First, steps are being taken to bring the current high growth rate down to a reasonable level to reduce energy consumption and cool economic growth. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

China-New Zealand Trade: Seizing a Unique Opportunity: Chen Mingming Outlines China's New Development Strategy and Its Relevance to New Zealand
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.