Contemporary issues in the chinese economy

Document Type:Coursework

Subject Area:Finance

Document 1

China has also experienced various challenges throughout the years as the population increases. The problems are expected to continue as the country becomes more affluent. Additionally, the continued economic growth and urbanization has brought a lot of opportunities and challenges to the rural society and agricultural sector in general. The main problems which have emerged due to the urbanization include pollution and food security. According to studies, the Chinese agricultural sector has been feeding approximately 22% of the world’s population. This stimulated many municipalities and provinces to start using innovative land tenure covenants. The land that was used for agricultural activities has been lost through the social and economic transition. Non-agricultural construction and readjustment of farming facilities are the leading causes of farmland in China.

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As the development of urban cities accelerates, the more arable land is lost (Cheng et al. According to statistics, about three-quarters of the land in China is 500 meters above sea level. Therefore, rapid urbanization has played a crucial role in China’s farmland loss. Human settlements, mining sites, and industrial sites have reduced the farmland. The government of China has industrialized rural areas through the construction of industries and buildings. The main objective of these constructions is to make China an industrious country and hence increase its economic growth. The process of rural urbanization in China has resulted in land development in a scattered manner (Ding, 2019). There is an unfavorable climate in the south of China which results in less agricultural activities.

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However, the loss of farmland in the southern region cannot be compensated by reclamation of land in the North. Some researchers argue that the expansion of non-agricultural construction, natural hazards, readjustment of agricultural land use and afforestation for ecological reconstruction are the significant causes of cultivated land losses. As the grassland and cultivated land decrease, the more the forestland and garden plots increase. The construction is attributed by the increase in urban population thereby improving the living standards of the people. On the other hand, China holds 20% of the world’s population but 7% of fresh water. The rapid growth of the middle class has demanded more water to cater to their lifestyles. Therefore, the consequences of water scarcity can be attributed to human activities.

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For example, residents in high rise building in Lintao city must carry water up to their apartments. On the other hand, Taiyuan city is under threat since guests in international hotels were advised that water would only be available for one hour per day (Parton, 2018). North China is subject to frequent droughts and hence the lack of water. A considerable amount of water comes from wells which are utilized in irrigation. The ministry of water resources and electric power has proposed the idea of diverting water from the Yangtze to irrigate North China. The analysis predicts that China would face catastrophic proportions as water shortages increase. Scientists also predict that the water shortage will rise to three billion cubic meters by 2020.

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Additionally, farmers want to water for irrigation purposes whereas people in the city need water to cater for their daily chores and activities. Therefore, scientists predict that some regions and provinces in China will experience massive shortages during their peak periods. Water supply problems are well known in the world. The main problem facing the country is how to distribute its water. As mentioned above, water resource is mainly found in Southern China, but the government has challenges in supplying the water. This has allowed the inefficient of water in agriculture and industry. Due to this, consistent water pollution of limited freshwater supplies has been witnessed in the last decade. A report issued by the World Bank of 2009 indicated that China was consuming its water ten times in the production sector than the average industrialized countries.

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Additionally, pollution in the main rivers and reservoirs has made water useless for industry and agriculture. Climate is another issue that has worsened the situation. The report also indicated that 13% of water is unused. The problem of water pollution arose in the last century where industrialization and economic expansion was conducted at the expense of water quality. Some firms from the west were delighted to outsource their production to Chinese firms which paid minimal wages and not concerned with environmental monitoring. The impact of water pollution affects many countries apart from China (Webber, 2017). Some of the water pollutions include discharges into oceans. The ranking was based on changes consumption of water quantity like household, industrial and agricultural uses. According to the report issued by China’s minister of water stated that about 40% of the country’s water sources are polluted.

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Another report issued during that summer showed that over 200 million people living in China’s rural areas lack clean drinking water. Lakes have also not been exempted from pollution by algae blooms resulting in the water surface to turn into iridescent green. Unknowingly, the underground water may be contaminated as recently revealed by the government study. A report issued in 2010 by the Environmental Protection Agency indicated that water pollution doubled since the government ignored the agricultural waste. The study stated that fertilizers used in the farmlands are a significant source of water contamination. Water consumed by many people living in China contains sulfates, fluorine, and arsenic. Over 900 million drink this water which is partly polluted whereas an estimated 600 million people drink contaminated water from human and animal wastes.

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High levels of radiation are also known to contaminate the water. The system has been implemented in various parts of the country like Gansu province, and the government intends to introduce in other regions. The Chinese government also issued a reduction call in 2006 which allows industries to consume only a third of the water. The five-year plan was used by the government to encourage people and companies to use water more efficiently. The government put some posters and billboards to create awareness to people about this policy. References Abbs, B. , & Li, M. , (2015) Analysis of farmland Fragmentation in China Modernization Demonstration Zone since “Reform and Openness”: a case study of South Jiangsu Province. Retrieved from: https://www. nature. com/articles/srep11797 Ding, C.

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