The Pros and Cons of Economic Expansion in Mainland China

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                                                                         Leo EMT-1 SH-07-0002

The Pros and Cons of Economic Expansion in Mainland China

   In recent years, the economic expansion has increased a lot in Mainland China. It’s no doubt that the economic expansion brought many advantages to Mainland China, however, there also some disadvantages. This essay shows both of the pros and cons of economic expansion in Mainland China, for example, the increase of GDP and the environment problems. There will also talk about the effect of economic expansion on industries and give a specific industry as an example.

First of all, I will give some background about this topic. The economic expansion is a kind of economic activity, it describe the level of economic activity of the goods and services available in the market place. (Riley, G. 2006) Economic growth is a measurement of national income and national income can be measured by income, output and expenditure of an economy. If there is a high rate of economic growth, it means that the income, output and expenditure are increasing. (Riley, G. 2006)

There are many pros of economic expansion, one of it is increasing in GDP. It brings a lot of benefits to an economy. First, economic growth can improve living standards and lower poverty rate. As I described in the background, the economic growth is a measurement of national income and national income can be measured by income, output and expenditure of an economy. (Riley, G. 2006) While the GDP increased, the expenditure of the economy will also increase. As a result there will be a better living standard and lower rates of poverty because people will earn more money. A report published by the Asian Development Bank in August 2004, many countries in Asia which have rapid growth reduced the number of people living in poverty (less than $1 a day) fell to 22% of the population in 2002. Compared to 1990, it shows economic growth has improved the standard of living. (Riley, G. 2006) It means the standard of living in Mainland China because of the economic expansion.

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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 ...

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