China is in trouble

Next time you write argumentation I would highly suggest you do not create a wall of text that is more then two and a half pages long. Anyway on to business. Some of the first points you have addressed in your argument is that China (PRC) is dealing with numerous challenges that threaten the stability of the state and economy. It is agreed by both me and you that the Xiaoping reforms have indeed helped the Chinese economy away from a centrally planned system to a more free market capitalist system. Mr. Xiaoping's reforms were indeed highly opposed to Mao's eglatarianistic idealism that had held China back from becoming a superpower. However the status of China has changed quite radically over the last 10-20 years to which I will point out that China not only has a bright future but indeed will begin to challenge the United States in terms of geopolitical domination. The first five points that you make that currently holds the PRC back is...1, The disproportionate balance of it's high domestic savings rate versus it's low domestic demand.2. It's ability to sustain adequate job growth for tens of millions of migrants to the workforce.3. Reducing corruption and other economic crimes.4. The ability to manage the increase in wages and inequality properly.5. It's ability to contain environmental damage and social strife caused by rapid transformation of it's economy.I.On your first point you claim that the high domestic savings rate versus it's low domestic demand has become a serious issue that needs to be addressed. I however would beg to differ. A savings rate is fundamentally the outcome of intertemporal optimisation. Yet there are many different schools of thought about the role of saving in economics. Some stress saving as a core driver of economic development. Others focus on links with cycles of aggregate demand. Others see excess saving as a key source of global imbalances and even a major cause for the international financial crisis (Bernanke, 2005 and Wolf, 2008). However the statistical measurement of savings is very precise. Saving is a residual concept defined as the difference between income and consumption. Small errors in the measurement of either large aggregate can lead to significant mismeasurement of savings. The link between saving and other economic variables can run in both directions. And possible determinants of saving can be cyclical or secular. In other words we cannot look simply at the rate of domestic savings as a indicator of economic hindrance or growth. There are numerous other factors here that you have ignored that are critical in analyzing possible dangerous economic indicators even when compared to low domestic demand. II.On point two you have claimed that the ability of the PRC to sustain job growth for tens of millions of migrants has also become an issue of economic hindrance. This is a non-issue. While obviously not at peak performance yet this will quickly evaporate as Chinese labor becomes more and more focused. In order to be concise on such a complex topic I will quote from a international study done by Remnin University of China. It states, " Since the early-1990s, the Chinese economy has switched to a capital-deepening growth path. This has appeared to be capable of sustaining rapid growth and increases in labor compensation. The draw back is that its capability of job creation has been weak. Now, the sustainability of the growth path depends on whether productivity gains from capital-deepening industrialization can be channeled to the development of the labor-absorbing capacity of the services sector. By design or by default, it appears that government policies in recent years have all been consistent with, even conducive to, labor compensation expansion and capital-deepening growth. These policies include using fiscal stimuli to boost investment, promoting the market power of workers, increasing the protection of labor rights, emphasizing income redistribution to avoid worsening social polarization, and expanding social welfare provision. There thus arises the question as to whether this policy line is justifiable, or whether the government should rather shift to the alternative, more market-oriented policy line of promoting a return to the previous, labor-intensive economic growth path."Clearly from this study this issue of workforce sustainability is blown out of proportion and not dire in the least bit.III.There is no doubt that the PRC has a serious corruption problem. However your claim on the basis of economic crime is vague at best. Economic crime can constitute numerous different standards of what exactly "economic crime" is. On this issue we could go back and forth on but your lack of conciseness regarding on what exactly constitutes economic crime does not allow me to argue either way for a positive or negative change. IIII.The Chinese goverment as adressed in point two has taken increasing measures to insure there is no increasing disparity between the two. V. I am not really sure what to do with the information you presented regarding enviromental and societal issues. You present no source or evidence to support this assertive claim..."As a result, Chinese farmers have developed an over reliance on the input of chemical fertilizers andpesticides. The consumption of chemical fertilizers and pesticides has shown a pronounced increase over the last few years. Indeed, China's consumption of pesticides far exceeds the average level worldwide and China's consumption of fertilizers per hectare far exceeds safety limits of developed countries for agricultural application. This overuse of fertilizers and pesticides could result in a serious decline of agricultural production. Additionally, industrial pollution has contributed to the arable land destruction, some estimate up to one sixth of China"s arable land is polluted by heavy metals."ConclusionIn conclusion as I have adressed in the points above it seems you are creating a exaggerated situation of the PRC on a economic and societal level. You also have provided me no evidence or sources to back the claims you have made in your points. With all this in mind I rest my case and the floor goes to the pro. Sources:http://www.networkideas.org...http://www.bis.org...http://www.bbc.co.uk...