uding domestic savings and foreign investment. Since becoming a member of WTO in 1999, China has attracted a great deal of investment from different countries, especially western countries. Comparing with their own countries, businessmen from western countries have found that a variety of resources in China such as wood, steel, and labour force, are far more affordable. As a result, a large number of manufacturing factories and plants have migrated from high cost expenses countries into China. Apart from that, the Chinese domestic investment has also been stimulated. The economic reform has motivated the Chinese people no longer to restrict their savings in banks but investing in some profitable stocks or shares, so a considerable number of residents have involved themselves in competitive business trades. Consequently, with the growing foreign and domestic investment, the Chinese economy is abruptly activated and presents a positive development.
However, although China has achieved a huge breakthrough in economy, many challenges have to be faced by the country. First and foremost, China's economic rapid development has not addressed environmental problems but instead it has increased its severity. According to a new report, China has overtaken the U.S. to become the world's biggest energy consumer in 2010. With a sharp increase of car demand, China has substituted America to become the largest country of oil products consumption and carbon dioxide (co2) from car emission has undoubtedly contributed to global warming. Additionally, a survey from World Bank reveals that the majority of the world's most polluted cities belong to China, taking up 16 out of 20, and the direct economic cost, such as health problems, water shortages, is estimated to be hundreds of billions of dollars annually. It seems that it is invaluable at the expenses of environmental deterioration to develop its economy. Besides, more than 300 million farmers living in the countryside probably drink unsafe water which is caused by chemicals and other contaminants. However, the Chinese government often disregards these environmental problems (Morrison, 2006). Although the Chinese government has probably in an effort to invest in exploring renewable energy and participate in the international conference on how to tackle pollution and global warming, in reality, it seems to be insufficient.
Another disturbing effect is that wealth gap between the rich and the poor is widening. In spite of the fastest GDP growth, per capita income is still low, with appropriately $3500 a year. According to statistics by the official Xinhua News Agency in China, the most affluent one-fifth of China's population earns 50 percent of total income. Due to the slow process of urbanization, there are a huge number of people who live in villages and have to suffer from inadequate employment, merely relying on cultivating fields to survive. Besides, although the government has carried out economic reform in rural areas, the insufficient infrastructure and costly expenses of products still restrict the consumption levels of farmers. (Chi, 2006). In addition to that, a considerable impoverish villagers living in villages are struggling with starvation and accommodation, while other wealthy ones are enjoying their luxury dinner and extravagant sauna. If the wealth inequality exceeds reasonable limits, the society will be becoming extremely unstable, since there have happened numerous events such as kidnap, burgling, and robbery.
Although China may suffer from difficult challenges in the long-term, opportunities in the future would not be ignored. China's economy i
