China’s Economic Growth and Manufacturing


The Chinese economy has been linked directly to the performance of its manufacturing industry for quite long. The connection between the economic growth of the state and its manufacturing sector is quite obvious; as the latter has been the source of employment options for most denizens of the Chinese population for quite a while (Worstall par. 2). Therefore, the recent news regarding the rapid switch from the manufacturing field to a different source of growth can be deemed as fairly surprising. Because of the loss of the connection between the economic success and the development of the manufacturing industry, the companies operating in the latter will have to consider outsourcing to improve their performance and, therefore, be competitive in the global economy.

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Article Summary: China’s Growth and the Manufacturing Sector

A recent analysis has shown that the enhanced economic growth, which China is currently experiencing, coexists with a drop in the manufacturing entrepreneurships’ performance (Worstall par. 5). Indeed, the manufacturing sector, which used to power the entire country, has shrunk significantly. The specified phenomenon can be attributed to the fact that China’s economy is being run “on a stable track boosted by new growth drivers” (Worstall par. 7), as economists claim.

It would be wrong to claim that the specified phenomenon should be viewed as unprecedented in the history of economy evolution, in general, as the switch in the source of economic development from one industry to another can hardly be viewed as something unexplainable. However, the change under analysis remains unique for China, as studies show that it has been relying on its manufacturing sector for quite a while: “Economic reforms in China began in 1978 when the Chinese concentrated more on the manufacturing sector compared to the agricultural sector” (Hussin and Yik 39). Therefore, it is the discovery of another source of economic success that makes the situation in China so unusual.

According to Worstall, Chinas’ companies have been experiencing a palpable slackening in the expansion process, which sets the economic growth of the state at a comparatively slow pace (Worstall par. 6). However, the fact that the country has found a new source of its economic progress can hardly be doubted, as cash injections into the state’s largest banks have stimulated the economic progress significantly. It is expected that China will witness not merely an inconsistently rapid increase in economic success rates but also set its economic progress at steady growth.

Managers’ Decisions Regarding Manufacturing

Based on the information provided in the article discussed above, it will be reasonable to suggest that manufacturers in China should seek assistance from foreign organizations, which are willing to invest in their business development. Indeed, the domestic economy of China does seem to provide the assistance that these firms will require to improve their performance and attain stability in the Chinese market. Specifically, the issue of sustainability of the organizations in question will have to be addressed (Worstall par. 7).

It could be argued that, with the recent stir in the news regarding the decay of the Chinese manufacturing industry, very few companies will be willing to invest in the organizations providing services in the designated domain. Therefore, additional tools for improving the overall quality of the products and the performance of the firms have to be introduced. For instance, using outsourcing, Chinese entrepreneurships will be able to deliver more impressive results by improving the overall expertise level in organizations.


As the article by Worstall has shown, the Chinese economy is no longer dependent on its manufacturing industry. On the one hand, the above-mentioned change in the design of the Chinese economy can be viewed as a major foot forward in the state’s progress; on the other hand, the lack of opportunities for the owners of Chinese manufacturing organizations may trigger a rapid demise thereof and, thus, lead to another drop in the economic growth rates. Therefore, additional tools for improving the performance of Chinese manufacturing organizations aimed at improving the quality of the products will have to be considered.

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Works Cited

Hussin, Fauzi, and Soo Yoke Yik. “The Contribution of Economic Sectors to Economic Growth: The Cases of China and India.” Research in Applied Economics

4.4 (2012): 38–53. Print.

Worstall, Tim. “Chinese Official Economists: China Should Grow At 6-7% For Some Years.” Forbes. 2015. Forbes. Web.

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StudyCorgi. "China’s Economic Growth and Manufacturing." March 15, 2021.


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StudyCorgi. (2021) 'China’s Economic Growth and Manufacturing'. 15 March.

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