The economic expansion can also help China in many social problems, for example, the employment. If the economic expansion in mainland China increased, the output and expenditure will increase. As a result companies will need more workers to produce more goods. So another benefit of economic expansion is that it can bring more jobs to an economy. (Riley, G. 2006) It is useful to decrease the unemployment in a country. The British economy is a good example where the number of people in work increased by about 29 million from 1993 to 2006 because of economic growth. (Riley, G. 2006) There is a large population in mainland China and growing rapidly. So the economic expansion will keep the unemployment rate relatively low in China. There is a large population in mainland China and growing so rapidly. It’s more than 1.3 billion and the growth rate is 0.629%. (Wikipedia. 2008) If the unemployment rate is too high, there will be more and more people being unemployed. The most important problem is those unemployed people are very easy to become crime because they can’t earn enough money to support their family. So that some of them will try to earn money in criminal way. As a result economic expansion can help mainland China to decrease the crime rate and the unemployment.
Although economic expansion brings many benefits to mainland China, there also some disadvantages of economic expansion. The main disadvantage of economic expansion in mainland China is the environment problems. (Holden, K. 2007) The level of consumption will be high because of the economic expansion. The high level of consumption might cause high level of pollution because when economy is growing people need more resource to produce goods and services, as a result it will pollute the environment more. China’s industrial growth depends on coal. Although it is plentiful in China, it’s polluting. According to a World Health Organization (WHO), 656,000 Chinese citizens were killed each year because of air pollution and 95,600 Chinese citizens were killed because of drinking polluted water. (Holden, K. 2007) It’s a serious problem of China.
Economic expansion will lead to the economic bubble which is “trade in high volumes at prices that are considerably at variance from intrinsic values”. (Ronald R. et al. 1993) It means the price of products is much higher than its real value. Generally, economic bubbles are bad on the economy because they tend to use unsuitable resources into non-optimal uses. For example, in mainland China the price of houses increased rapidly in recent years. As a result, the real estate development invested many building projects. However the supply is too much so that the resources are used into non-optimal uses. In addition, a crash will follow by an economic bubble which can destroy a large amount of wealth and lead to economic problems. It will also cause deflation as was the case of the in the 1990s for . (Wikipedia. 2008)
China is the largest producer of steel in the world and the steel industry has been rapidly increasing its production because of the economic expansion. (Wikipedia. 2008) Steel production was 140 million tons in 2000, while in 2006 was increased to 419 million tons. Much of the country's steel output comes from China. The rapidly increase of steel production is caused by the economic expansion in mainland China. (Wikipedia. 2008) It shows that the economic expansion brings a large quantity of output to mainland China. So that there will be more jobs and people will become richer. It means people’s living standard will improve.
There are both pros and cons of the economic expansion in mainland China. For example, the economic expansion will increase the GDP in mainland China while economic growth brings a lot of benefits to an economy and it will also cause many environment problems. However, the economic expansion helps in the economy of China. Although there also some cons of economic expansion, people can find another solutions to solve it.
Bibliography
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Holden, Kevin. (2007) National Geographic. Available at: (Accessed on: 20/4/2008)
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Riley, Geoff. (2006) Eton College. Available at:
(Accessed on: 20/4/2008)
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Ronald R. et al. (1993) The Robustness of Bubbles and Crashes in Experimental Stock Markets. Available at: (Accessed on: 19/10/2008)
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Wikipedia (2008). Wikipedia. Available at: (Accessed on: 19/10/2008)
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Wikipedia (2008). Wikipedia. Available at: (Accessed on: 19/10/2008)
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EMT-1
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