Personal Financial Services in China Essay Example | Topics and Well Written Essays - 2250 words

Personal Financial Services in China - Essay Example Throughout the world, China is considered as a pioneer in all kinds of new technologies and modern scientific approaches to business. Thus, it has recorded a very high average growth rate of 10% for the last three decades (Zhu, 2012, p. 115). The economic structure is such that the country follows a socialist model in which unionization is supported and the people are provided with social benefits (Chao, 1986, p.245). The fair competition takes place where private and public enterprises work in harmony with one another and try to deliver an efficient allocation of the resources in the economy. The economy of China has the highest rate of urbanization and it is also the largest economy in the world. The country started the endeavor to industrialize the economy at the beginning of the 1950s. Before 1978, the growth rate of the economy was 3 % per annum which increased to 8% post-1978 period. There was a reversal in the pattern of accumulation of capital and the productivity growth of t he factors of production like labor and technology. The rate of labor participation grew very slowly during this period because the growth rate of population was very low (Schultz, 1953, p.136). The basic model that every business in the people’s republic of China followed was focused on investment. This strategy was taken only to achieve economies of scale and high rate of growth by the government of China (Naughton, 1995, p.45). However, it was not much of a success and led to many unfavorable consequences for the society.... Fair competition takes place where private and public enterprises work in harmony with one another and try to deliver efficient allocation of the resources in the economy. The economy of China has the highest rate of urbanisation and it is also the largest economy of the world. The country started the endeavour to industrialise the economy at the beginning of the 1950s. Before 1978, the growth rate of the economy was 3 % per annum which increased to 8% post 1978 period. There was a reversal in the pattern of accumulation of capital and the productivity growth of the factors of production like labour and technology. The rate of labour participation grew very slowly during this period because the growth rate of population was very low (Schultz, 1953, p.136). The basic model that every business in the people’s republic of China followed was focused on investment. This strategy was taken only to achieve economies of scale and high rate of growth by the government of China (Naughto n, 1995, p.45). However, it was not much of a success and led to many unfavourable consequences for the society. The agricultural production in the country also faced a setback because of this reason. In the post 1990 period, the economy of China again started growing at a very high average rate of 10% and it was accompanied by a very high rate of inflation. The Asian financial crisis had a very little impact on the Chinese economy only through the fall in the FDI and reduction in the exports of the country. This is because China had very large reserves and the cash inflows that took place in the country were mainly long term in nature and could not be withdrawn by the investors. But it was not completely unaffected. The rate of unemployment was increasing and the growth rate was