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China's bumpy road to the top

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Elaine Yauin Beijing

After more than two decades of rapid development, China has transformed itself from a technological backwater into an economic powerhouse with a thriving industrial sector.

The textiles, plastics and leather goods churned out by countless factories on the mainland are exported to countries all over the world, bringing in much-needed hard currency to boost the mainland's economy.

While a booming export industry and technological advances bring China wealth and prestige, its increasing clout on the international stage is worrying many countries. These nations accuse China of destroying their economies and over-exploiting the world's resources.

The United States, which has a record trade deficit with China, is especially wary of the mainland's expansion. With cheap mainland exports swamping American markets, US manufacturers have been badly affected and thousands of jobs have been lost.

The US claims that the undervalued yuan has given mainland exporters an unfair advantage in global trade. To bridge the yawning trade gap, US officials are pressing Beijing to let the yuan rise faster and have threatened to slash quotas for imports from China. The persistent trade woes have strained relationships between the two countries and destabilised the global economy.

Besides creating suspicion and hostility among foreigners, China's rapid progress has brought misery to millions of mainlanders who have been left out of the economic boom. Farmers and labourers in inland provinces have to endure environmental degradation and are easily exploited by profits-driven developers.

With skyscrapers and shopping malls springing up across mainland cities, many villagers are driven out of their homes. Violent protests sparked by land seizures have caused instability in rural China.

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