China vs world: opportunity or threat?

• Author: Oros, A. - Tache, I.
• Position: PhD Student, Faculty of Economic Sciences, Lucian Blaga University of Sibiu - Dept. of Economic Sciences and Business Administration, Transilvania University of Brasov
• Pages: 205-208

Bulletin of the Transilvania University of Braşov • Vol. 5 (54) •No. 1 - 2012

Series V: Economic Sciences

CHINA VS WORLD:

OPPORTUNITY OR THREAT?

A. OROS1 I. TACHE2

Abstract: This paper is aimed at analyzing some key issues posed by

China’s economic rise. First, we examine what are the opportunities and

threats of Chinese evolution in present and recent future. Then, we address

the question of what could Chinese government do in order to benefit from

this opportunities and prevent the imminent threats.

Key words: China, economic superpower, global economy.

1 PhD Student, Faculty of Economic Sciences, Lucian Blaga University of Sibiu.

2 Dept. of Economic Sciences and Business Administration, Transilvania University of Braşov.

1. Introduction

For the Western world, China has always

represented a mystery. From explorers like

Marco Polo, who returned home with

plenty of amazing stories about the great

richness of this mysterious country, to the

economic and political analysts, who are

unable to understand a society that does

not fit the Western model of liberty and

wealth, they all considered Chinese culture

impossible to understand.

The curiosity made China’s evolution to

become one of the most popular subjects

around the globe. This is the reason why

most of the Chinese studies are written not

inside, but outside China. Every day, new

articles, documentaries, scientific papers

and books are printed all around the world.

And the opinions are far from similar...

2. Objectives

The purpose of this article is to lay out a

number of issues presented by China’s

rise. Too little is known about China’s

impact on global world, this is why there is

a lot of enthusiasm about its evolution, but

also a lot of fears and scepticism. In this

paper we present in a more analytical

framework what are the opportunities and

threats of China’s evolution in the present

and near future.

3. Chinese evolution - opportunities and

threats

3.1 Opportunities

Generally, scholars’ opinions are divided

into two main groups. On the one hand,

there are the enthusiasts, the ones that

noticed the opportunities offered by the

Chinese market. Over the last 30 years,

China emerged from an underdeveloped

country to a new economic superpower.

Growth has averaged 10 percent, the most

impressive record in history.

In 1978-2009, China’s GDP rose 18.6

times [2], and the country became the third

world economic power, succeeding United

States and Japan [3]. Moreover, according

to data published in 16th August 2010,

Chinese economy surpassed Japan’s and so

China became the second largest economy

in the world [4]. With such a performance,

it is estimated that China should overtake