Chapter 19, Problem 18AA

To determine

To explain: The main problems that should be overcome by China.

Explanation of Solution

China is moving towards a capitalist economy, in this process, the Chinese government has kept many private property rights with it to manage the economy. The government also sets up the production quota and decides the produce to be made in the economy.

The main problems that China is facing are pirate markets and increased pollution. There are many products that are available in the pirated form in Chinese markets and the government knowingly about the pirated markets had ignored this. This can be done by the government to collect revenue from the economy. The main problem that China is suffering from and should try to overcome is the problem of pollution. The pollution level has raised to 400%. The country is producing undesirable gas emissions, acid rain is also seen. 70% of the country’s rivers and lakes have become polluted and bottled water is the only option for the residents. China needs to overcome this problem soon as residents are suffering a lot due to the increased pollution.