China’s Economic Growth and the Property Revolution

After joining the world trade Organization in 2001, China’s economics growth is always brilliant. March of 2007 is to be remembered as the great property revolution turning point for China. China’s Authorities declared legal to protect individual property, which is a great step ahead for China’s economic growth which was based for decades on collective or public property.

Even though rural areas are under the old property legal system, the fact that the National Popular Assembly voted almost unanimously the Law of private property revolution, indicates that China is becoming more integrated into capitalism and into the Global Economy. Prime Minister Wen Jiabao regarded the property revolution as the “great jump” as a way to change from the days of instability and lack of productivity, into a new order where quality products and high levels of productivity are mandatory. The financial situation of state owned companies and the sagging contribution to employment has become a great concern for China’s central government.

Since 1978 for China’s economic growth, the government of the People’s Republic of China is reforming its economy from a Soviet style centrally planned economy, to a market oriented economy within the political framework of the Communist Party of China. China’s economic growth is helping to bring down the poverty levels, from 53% in 1981, to less than 8% nowadays. However, Chinese prosperity is still concentrated in the coastal and southern provinces, while efforts are being made to expand the prosperity to the inner provinces and the industrial northeast. Foreign trade and investment are helping increasing levels of income, consumption and productivity. The government is focusing on foreign trade as a way to promote China’s economic growth. China’s economic growth is so strong, that it is the first in the consumption of aluminum, steel, copper and coal and the second biggest consumer of oil in the world. With a cheap labor force of more than 800 millions workers, China’s economic growth potential is huge. Compared with developed countries, China lags behind in areas of science, technology, management, ecological environment protection, educational quality and organizational levels. Joining the world Trade Organization is paying off for China’s economic growth, as foreign direct investment is surging.

With China’s economy growth rates over 10%, and exports growth at a steady pace, the future is promising for the new member of the Capitalistic Club. Even though there are many countries feeling threatened by China, we have to admit that there is a new great door to opportunity being opened to industrial and trade investors around the world.