tardigrada, 1 year ago

To provide context to the article: There is a proven dynamic relationship between trade openness, foreign direct investment, and industrial economic growth within economies, and this is true also for China. There is strong evidence for this (for example, see here).

A significant portion of China’s GDP depends on foreign direct investments, and the Gini coefficient, a metric for economic inequity, is 0.45 in China (for comparison, in most European countries it is between 0.3 and 0.35). It is commonly said that any Gini above 0.4 bears a high risk for social unrest.