Contracts are made between farmers and village economic cooperatives and a wide variety of offices and technical personnel from different administrative levels" (fmprc.gov). The funding for the technology used by the agricultural industry can be traced to extension stations of political parties, finance bureaus, or local insurance company. Since the groups funding technical contracts are nothing more than investors, a portion of the profits from increased production due to the technological advancements are returned to these groups. However, the technology providers also bear the risk of investors, "if output and economic returns can’t reach prescribed figures, the extension administrations have to make up the losses"(fmprc.gov). Like all good things, China’s formidable economic growth had its downsides. There are a few detriments like inflation, an under-aided agricultural market, government inefficiency, and geographically uneven development. High inflation, caused by a demand for more exchange medium on the Chinese market is causing Chinese currency to depreciate relative to other national currencies. Currency conversions and management remains a sticking point for many businesses wishing to invest in China. There has been some movement in Asia toward a more uniform level of currency exchange, but not so much that it has affected the difficulties in trading with China. And, a lack of emphasis on the agricultural market is causing that sector of the Chinese economy to fall behind, and soon the supply of agricultural products will fall below the demand for these goods, resulting in a shortage. Another problem is also the inefficiency of large, state-owned production facilities can be explained by excess bureaucratic red tape and corruption. Finally, there has been an uneven distribution of development between the land-licked, western section of China and the industrialized east-coast, consequently causing ineffective land u...
