Main Industrial Development Challenges
China is currently faced with the following industrial development issues and challenges:
High Growth, Low Income
Despite the country’s dynamic growth, China is still a low-income country.
Lagging Rural and Inland Development
Disparity has continued to widen in economic performance across provinces.
Need to Enhance Competitiveness Through Industrial Restructuring and Upgrading Technology
China’s exports are concentrated at the relative low-end of the value-added ladder.
Under-Employment and Unproductive Labour
The labour market has changed drastically in the past decade.
Lack of Human Resources and Social Welfare
Low income and high unemployment levels are in part related to the social welfare policies of the Chinese government.
Environmental Problems
China’s rapid development, with its resulting energy needs and consumption, has caused serious pollution and degraded natural resources.
Food Safety
Chinese researchers have concluded that the country’s food safety management system has serious deficiencies in standards, monitoring, interagency cooperation, and overall safety results.
Energy Supply and Usage Concerns
Since 2000, economic growth has caused energy demand to increase by 10 percent per year.
Climate Change
China’s 2006 report on climate change acknowledges serious problems that the country will encounter.
Uncertain Role as Both Aid Recipient and Donor
Since China’s economic reform and opening in the 1970s, the world has given the country aid and investment money, over US$ 500 billion in total.
