The Fight for Domestic Business in China

           China’s problem is quite the opposite from America’s--they have too much outsourcing into their country rather than from it. Though I am sure neither you nor a lot of China sees this as a problem because of the major boost it gives to China’s economy, even during this recession most of the world is experiencing. The problem is that these large foreign companies, who have been coming here for it’s cheap manufacturing and the large market for their products, have made it impossible for any of China’s domestic companies to keep up and flourish as much as the foreigner’s have.

            The economy of China relies purely on their exports and as the past has shown us, it is not safe for a country’s wealth to rely on one source. Due to this, it has been Beijing’s top priority to fix this problem by encouraging the growth of the domestic market. The Chinese government has been focused on taking advantage of the extra export money they have to take a big step up in the bettering of the country. According to Premier Wen Jiabao at the UN general assembly in New York “China has brought down the number of people in absolute poverty from 250 million to 15 million in less than 30 years" (China as a Global Player) this is a benefit of the foreign companies and the work of the government combined. Also over the past ten years China’s economy has been growing by 10.5% annually. All this work the government has been doing has paid off, but it still needs working for the better future of their domestic market.

China’s domestic businesses have been struggling to keep up; those who are really in deep have turned to illegal methods in getting ahead. In May of 2008 the Chinese government had discovered a child labor ring that tricked children from poor areas to come work in the “booming coastal cities.” This included over a hundred children ranging between the ages of 13 and 15 (the legal working age is 16); they were forced to work 300 hours a month. Though we may be bringing money to China by bringing our business there it seems like we are really hurting them in the end not only their businesses, but the people as well. The portrayal of the pressure we have created was written out well in the New York Times article, “The abuses may also reflect the combined pressures of worker shortages, high inflation and a rising currency that have reduced profit margins of some Chinese factories and forced them to scramble for an edge — even an illegal one — to stay competitive.” (David Barboza, China Says) The future of China is domestic demand and consumption so the importance of fixing this problem is immense.

            I hope to see China fix their domestic business problem because the homegrown market is part of every country’s culture; and to see it disappear would be like seeing their culture slowly decay. China’s government is working hard to stop this from becoming their future. From the success they have had so far with the rising of their economy and bettering of the country I believe they will work it out in time.

Works Cited

"China as a Global Player." World Economic Forum. N.p., n.d. Web. 28 Feb. 2013.

Barboza, David. "China Says Abusive Child Labor Ring Is Exposed." New York Times. N.p., 1 May 2008. Web. 28 Feb. 2013.

Jiebao, Wen. "Promote Sound, Sustainable and Quality Development." The World Economic Forum Annual Meeting of New Champions 2011. China, Dalian. 28 Feb. 2013. Speech.

"China." Sourcing Line. N.p., n.d. Web. 28 Feb. 2013.