China’s Future Development: Challenges and Opportunities
- James A. Dorn
- Content Type
- Journal Article
- The Cato Journal
- Issue Number
- Publication Date
- Winter 2019
- The Cato Institute
- 1978 has been erratic, with many interruptions along the way. The
end result, however, has been eye opening: the Middle Kingdom has
become the world’s largest trading nation, the second largest economy, and more than 500 million people have lifted themselves out of
poverty as economic liberalization removed barriers to trade.
One of the enduring lessons from China’s rise as an economic
giant is that once people are given greater economic freedom,
more autonomy, and stronger property rights, they will have a better chance of creating a harmonious and prosperous society (see
Nevertheless, China faces major challenges to its future development. There is still no genuine rule of law that effectively limits the
power of government, no independent judiciary to enforce the rights
promised in the nation’s constitution, no free market for ideas that is essential for innovation and for avoiding major policy errors, no competitive political system that fosters a diversity of views, and a large
state sector that stifles private initiative and breeds corruption.
China’s slowing growth rate, its increasing debt burden, environmental problems, and the increasing tension in U.S.-China relations compound the challenges facing Beijing.
- Development, Economics, History, Trade Liberalization
- Political Geography
- China, Asia