Honors Theses

Author

Andrew Piletz

Date of Award

2006

Document Type

Undergraduate Thesis

Department

Croft Institute for International Studies

First Advisor

Gang Guo

Relational Format

Dissertation/Thesis

Abstract

China’s unemployment problem is relatively new because of the planned economy under Mao Zedong. This study shows how China’s employment has been affected by Deng’s “socialist market economy,” educational reforms in 1999, and accession to the WTO in 2001. Also, it sets out to determine the effectiveness of China’s reemployment efforts, and proposes solutions for the future. Data for this thesis was attained through three main methods. The first was through scholarly secondary sources. The second was through primary data such as government statistics. The third was through a survey I had conducted at Shandong University at Weihai among over one hundred college students. These three sources of data were combined to show any correlations that might exist. Results of the primary and secondary data illustrate a clear unemployment problem that has been rising drastically since the 1990s and has increased since China’s accession to the WTO. Also, because of increased college student intake in 1999, college graduates are facing the new idea of unemployment. The survey results show a clear trend of increased western capitalistic thinking among China’s younger students. Research shows that China’s reemployment projects in the 1990s were marginal at best. Today, China is relying on the growing tertiary sector and FDI to absorb the unemployed. Most experts believe that China’s unemployment problem will increase for five to ten years after WTO accession, due to the restructuring of industries and increased foreign competition, but will drop after that transition period as China’s economy adjusts and foreign companies become more accustomed to China’s markets. This scheme seems ideal, but it is an oversimplified model as only part of China’s population will benefit from these growing sectors. China has firmly established itself as one brings this economic dragon to its knees.

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