Human Resource Capital: The Importance Of Developing Knowledge Capital In The World's Fastest Growing Economy

China's rise to the top of the economic world in the past decade cannot be denied by anyone. It has experienced massive economic reform and embraced a much needed change in economic perception and is now rapidly reaping benefits because of this.In spite of this, China's continued rise to economic prowess has seen a bumpy road largely because of the lag in human resource capital. While other developed countries have continuously developed their human resource capital over generations and have seamlessly adapted to the modern global economy, it is not the same case in China. The race to join the elite ranks of the global powers is about catching up to the rest of the world not only economically but also socially and politically. The faster the changes come, the more social problems the country has battled in its large territory.China's rise was large due to the fact of their manufacturing prowess and the competitive advantage of having low cost labor but now, this advantage is slowly eroding as expenses increase and even lower cost countries are stealing manufacturing jobs from China. In the natural economic progression, developed countries have moved from low skilled work to today's modern economy driven by the creative workers where talented and educated people are driving the economy through the value they yield. And China only has a short amount of time to develop the human resources capital where it is lagging behind as problems from both local and outside its borders are arising. Without adapting to the new economy soon, more complicated social problems could arise and the country's development can potentially be derailed.This study focuses on the huge role and the importance of China to focus and quickly develop a competent knowledge infrastructure for its human resource capital. Knowledge capital builds human resources which in turn will drive the economy. However, this will also not be an easy task because of the short amount of time and the process of globalization itself offers problems - it brings riches to the people who can adapt while others are left to tend for themselves.