China Economic Crisis

China is ran under a dictatorship, led by Mao Zedong, leader of the Communist Party. Being an authoritarian country, they restrict their citizens’ activities, job opportunities, education and rights. For many decades the citizens of China were prohibited to conceiving more than one child, recently that have changed. The people of China are now allowed to consider a second child. This policy have not affected many people of China because they are accustom to the one child policy life style. The people of China are used to living and caring for one child, that a second child would only cause more financial problems. This limits the amount of production in China.

In comparison to the US, the Chinese people have more of a widespread unemployment rate, income inequality, inequality as citizens and they live in more poverty. In China, they have sweatshops that all age children work in. This means that you can start working at any age you are capable of comprehending the task at hand. Also, they have limited jobs opportunities, so everyone is fighting to get into the same place. Otherwise, they are pack in one location or factory to work long hours under horrible conditions. This leads to an economy where there’s a lot of output but no input. The people of China are only consuming goods that is necessary for their family to survive and everything else is useless.

For instance, the Foxconn factories in china limit their workers to having a life outside of their job. Also, they have to pay to work in these atrocious conditions. “They keep their employees in overcrowded dormitories run by military-like security forces. People work excessive hours, often with no compensation for overtime, which the company claims is done voluntarily. Management controls every aspect of workers’ lives, interfering with their privacy. The concept of privacy is even an illusion, as up to 24 people share a room in huge blockhouses.” This type of lifestyle can make a person very depressed. It’s not healthy for the Chinese citizens or anyone else. The people who work in the Foxconn industry are basically paying to work in confinement. They are on a time schedule and are supervised throughout the week. Even when they aren’t working.

In addition, in Beijing there’s an excess industrial production problem that affects the economic reform. The government is bringing in products that aren’t currently being used. So, factories are getting shut down and the demand for those products are lessening. The people of China are getting fired from their jobs, so they are consuming less products. Which is causing the government to get rid of the surplus. The government also realizes that this will harm the revenue of China. So, they are making excuses to why production have slowed down. But the real reason is because they care less about their people demands and more about profit.