Modern economic growth can be defined as a period with a sustained rate of growth caused by natural, environmental, political, economic, or external forces. Many countries have experienced periods of modern economic growth, but the most prominent is China. Prior to 1949, China’s economy was relatively stagnant and localized. With the formation of he People’s Republic of China, a new era of economic possibilities was created. Since 1978, China has experienced exponential modern economic growth.
China is the largest country in the world in terms of population, with 1,379,302,771 people (CIA Factbook, 2017). With such a large population, China is considered one of the largest emerging economies that offer market opportunities for foreign investment.
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No political opposition group exists and the legal power of the party is guaranteed in the constitution. Navigating the strict policies, and obtaining market information has remained an obstacle for businesses regarding the political climate. This puts the future economic growth at risk of being stifled by government interference. The Communist Party’s Central Military Commission has full command of China’s armed forces, both active and reserve. The Central Military Commission also controls the People’s Liberation Army, and the People’s Armed Police Force, both of which are not national armies belonging to the state, but serve as the Communist Party’s armed wing.
In order to prevent the stagnation of the economic growth, the Communist Party of China must continue to open the economy globally and increase their domestic consumption. Last year, government expenditures were the driver of China’s GDP, not domestic consumption (Forbes, 2017). In order to improve their domestic consumption and increase their GDP, the Chinese government must reduce excessive state control that can hamper certain industries. Additionally, the government should work towards reducing subsidies for certain industries and reallocating resources to investment in labor
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In 2016, China had $2.119 trillion worth of goods exported and $1.589 trillion worth of goods imported (Workman, 2017). The largest import is electronic equipment, which is also their largest export. This can largely be attributed to the growing exports of electronic equipment such as cellular devices. China is the largest supplier of cellular devices to the United States, making up $37.4 billion worth of U.S. imported mobile phones (Workman, 2017). As a member of the WTO, China has gradually decreased tariffs from 2002 to 2010 as per the agreed upon reductions (USTR, 2016), and scaled back on additional import and export regulations, thus making the market more accessible. In order to continue economic growth, China must continually open their borders globally, and comply with WTO rules.
Additionally, communication and media systems both face interference by the government, due to the Communist Parties overarching control. By developing communication and media systems, China’s technology will also improved. Between 2000 and 2010, the gross domestic investment in technology and research and development grew by 24% (CIA Factbook, 2011). Gross Domestic Expenditures on Research and Development make up 1.5% of the GDP, and Batelle estimates that it will exceed the United States by 2023 (Batelle, 2016). With additional technology, transportation systems and ports for trade will develop
the world today. It has exhibited many of the signs of a high growth economy,
Before the Communist Revolution, China had a dynastic system for their form of government. A dynastic system consisted of China being ruled by emperors and it started around 221 BC. The first known dynasty in China is the Shang Dynasty. The social classes included the upper class of nobles, the working class, and slaves. In the Shang Dynasty, China was well- known for their well- organized armies and the chariots they used. Their system of writing consisted of pictures called ideograms, pictograms and phonograms. The dynastic system left China in 1911 when the Qing Dynasty ended. A republican form of government was introduced where warlords governed the country. This type of government was weak for China and Sun Yat-sen, the leader of the Nationalist Party, searched for help from other countries to try to bring down the warlords. Unfortunately, western countries did not give their help, and China went to the Soviet Union for help instead. The Soviet Union agreed to help them out but they pushed for China to become communist. This decision eventually led to the civil war that occurred in China.
Robert E. Lucas Jr.’s journal article, “Some Macroeconomics for the 21st Century” in the Journal of Economic Perspectives, uses both his own and other economist’s models to track and predict economic industrialization and growth by per capita income. Using models of growth on a country wide basis, Lucas is able to track the rate at which nations become industrialized, and the growth rate of the average income once industrialization has taken place. In doing so, he has come to the conclusion that the average rate of growth among industrialized nations is around 2% for the last 30 years, but is higher the closer the nation is to the point in time that it first industrialized. This conclusion is supported by his models, and is a generally accepted idea. Lucas goes on to say that the farther we get from the industrial revolution the average growth rate is more likely to hit 1.5% as a greater percentage of countries become industrialized.
According to a 2013 estimate of purchasing power parity, China has a GDP of $13.3 trillion. It has a 7.6% GDP real growth rate and ranks 120th in the world in GDP per capita. One of the prime advantages of China is a populous labor force that ranks first in the world, totaling 797 million evenly split between agriculture and services with a few less working in the industrial sector. The unemployment rate is a manageable 6.4% and a 7.7% industrial production growth rate. China exports electrical and other machinery, data processing equipment, apparel, radio telephone handsets, textiles, and integrated circuits primarily to Hong Kong and the United States, as well as to Japan and South Korea. China also imports electrical and other machinery as well as oil and mineral fuels, metal ores, nuclear machinery components, optical and medical equipment, motor vehicles and soybeans. Its primary import partners are South Korea, Japan, Taiwan, United States, Australia, and Germany. China utilizes transportation through its 507 airports, and a railway system that ranks 3rd in the world totaling 86,000 km. China also makes use of its roadways totaling in excess of 4,000,000 km and stakes claim to the largest amount of navigable waterways in the world. Major seaports include: Dalian, Ningbo,...
China the land of giant panda has also become the land of numbers and achievments. Official figures shows that China's economy is the fourth largest in the world when measured by nominal GDP and is predicted to surpass Germany to take the third place in early 2008.
by a world power can be felt by practically every nation of the globe involved
In 1978, China was positioned 32nd on the planet in export volume, yet it had multiplied its reality exchange and got thirteenth biggest exporter in 1989. Between 1978 and 1990, the normal yearly rate of exchange extension was over 15 percent,[11] and a high rate of development proceeded for the one decade from now. In 1978 its exported on the in the world of the overall industry was insignificant, in 1998 regardless it had short of what 2%, however by 2010, it had a world piece of the overall industry of 10.4% as stated by the World Trade Organization (WTO), with stock fare offers of more than $1.5 trillion, the most astounding in the world.
China is located in Eastern Asia, but mainly to the north of the Xi River and the south of the Huang He River. China has many forests and swamplands, which later in time were populated by farmers. Anywhere above the Huang He River was too steep for suitable farming lands. There was not many farmers in China due to the geology, so most people were hunters or gatherers.
With a population of 1.357 billion (2013)3, China is the most populated country in the world. Along with the huge population comes a market that is unmatched by any other country of the world. Both domestic companies and foreign companies want to tap into this large market that just recently embraced capitalism and entered into the World Trade Organization.
From the 1970s, there has been a wave of liberalization in China, which was introduced by Deng Xiaoping. This is one of the key reasons to the rise of China to be one of the economic giants in the world. In the last 25 years of the century, the Chinese economy has had massive economic growth, which has been 9.5 percent on a yearly basis. This has been of great significance of the country since it quadrupled the gross domestic product (GDP) of the country thus leading to saving of 400 million of their citizens from the threats of poverty. In the late 1970s, China was ranked twentieth in terms of trade volumes in the whole world as well as being predicted to be the world’s top nation concerning trading activities (Kaplan, 53). This further predicted the country to record the highest GDP growth in the whole world.
When the new Chinese Government was set up in 1949, the new government faced a lot of problems. First on their agenda was how to re-build the country. As Communist Party of China (CPC) is a socialist party, their policies at the time were similar to that of the Soviet Union’s. Consequently, the CPC used a centrally planned strategy as its economic strategy when it first began. For a long time, the Chinese economy was a centrally planned economy in which none other than the state owned all companies. In fact, there were absolutely no entrepreneurs. As time went on, the problems of a centrally planned economy started to appear, such as low productivity, which was the key reason for restricting the development of China. With the population growing, the limitations of the centrally planned economy were clear. In 1978 China started its economic reform whose goal was to generate sufficient surplus value to finance the modernization of the Chinese economy. In the beginning, in the late 1970s and early 19...
...st and stand in the world. It is predicted that China will one day be the largest economy growing country in world. They continually growing and rebalancing their world to be the best. The growth of economy will depend on the Chinese government comprehensive economic reforms that more quickly accelerate in China transition to a free market economy. The consumer demand, rather than exporting the main engine of economic growth; boost productivity and innovation; address growing income disparities; and enhance environmental. (Morrison, 2014,para2)
Economic boom in India and China: India and China account for 1/3 of the world population and these countries have seen a great economic boom in the recent years and this partially is attributed to the rising costs. Around the world, people have eaten more as they grew richer. This phenomenon is called Nutritional transition. Hundreds of millions more people are now rich enough to eat meat compared with 10 years ago, with meat consumption in China more than doubling over the past 20 years.
The rise in China from a poor, stagnant country to a major economic power within a time span of twenty-eight years is often described by analysts as one of the greatest success stories in these present times. With China receiving an increase in the amount of trade business from many countries around the world, they may soon be a major competitor to surpass the U.S. China became the second largest economy, last year, overtaking Japan which had held that position since 1968 (Gallup). China could become the world’s largest economy in decades.
Economic growth is one of the most important fields in economics. In current generation economic is developing well. Economic growth is really important to country and for the world as well. Economic are one of the identity for country because it shows a country development and attraction for other countries (F, Peter. 2014). For example well economic develop such as Singapore, Dubai, New York, and Japan. These countries are well develop and maintaining their economic growths. Economic growths are really important because higher average incomes enables consumers to enjoy more goods and services. Then, lower unemployment with higher output and positive economic growth firms tend to utilize more workers creating more employment. Enhanced public