Analysis of Structural Problem of Chinese Economy to Realize the Future Scope

This report is a reflection on structural problem of Chinese economy and reforms needed for future growth. The main focus is on the value addition to the exports and the industrial restructuring. Reports shows how china can diversify its manufacturing base to become less susceptible to external shocks and at the same time caters its huge population. China is investment driven economy and share of consumption to GDP has to increase, for that industry diversification in non-durable consumer goods, etc is necessary. Report also discusses the value addition by Chinese worker to the each sector mainly agriculture, manufacturing and service and their trends. It is found that manufacturing is already stressed and further increase in the availability of labor force will suppress the income more hence service sector needs to be enhanced.