Furthermore, before the financial crisis, the Chinese economy had a record from 2006 to 2008 with the fastest-rising Gross Domestic Product (GDP) in 11 years. The effect of this enormous growth has captured world attention, due to the fact that the large trade surplus China is with U.S has been leading to several issues in both countries. Some analysts such as ARTICLE 8 PP 5 see the huge China trade surplus with U.S as a clear indicator that China’s economical trade policies are manipulated or unfair. On the other hand, some other experts in the economic field claim that China´s surplus is a synonym of high savings rate. This paper aims to argue why China’s surplus is neither good for China nor the U.S. in terms of “exchange rate manipulation” and “high savings rate”.
China stands out for the explosive growth in its industrial segment, which in turn was fueled by China’s willingness to act more quickly and aggressively to lower its trade barriers and to draw foreign investment. In contrast, Ind... ... middle of paper ... ...kets. Their economic systems subdued growth and left both countries in poverty. In 1980, per capita income stood at $556 in China and $917 in India (Department of State, 2010). To boost their economies, China and India shifted strategies, letting private enterprise prosper and opening markets to foreign trade and investment.
The Promising Future of China's Economy If China's economy grows as fast for the next 20 years as it has for the past 14, it will be the biggest economy on earth: I feel that China's drastic improvements over the last 14 years are overwhelming, with their Real GNP growing at a rate of 9% a year, which means by, 1994, China's economy will match the performance of countries like Japan and Taiwan. China's standard of living has also increased, and the number of people who were considered absolutely poor decreased approximately 63%. I feel with the vast amount of people living in China, and the economic activity booming like it is, China's exports will continue to grow, as well as the standard of living. This will create more revenue, and more capital for them to produce even more goods and become even larger, prospering as one of the biggest economies on the earth. I also feel that China should try to overcome its corrupt system and steadily move into a free enterprise system.
Trade also grew more popular as china’s GDP got higher. The USA and China are now very close trade partners. In 2011, the two countries have traded goods which are worth $503 billion (Morrison). However, China’s rising Economy has also raised the concerns of foreign policymakers as they consider how this increasing economy could affect other countries’ economies and the global world trade (Li). They also fear that the growing economy could also decrease exchange rates on other currencies.
Although America’s economy is growing as time goes on, China’s economy is also growing. China’s growing rate is higher than America’s, and if this continues, China’s economy will soon pass America and takes its place as number one. Before Bill Clinton presidency, America was in a economical deficit state but after Clinton presidency the country was in a economical surplus, but when George W Bush left office, America was in an economical deficit because the government has been overspending and spending more money than they receive from taxes. This shows a trend, because America has went from a deficit to a surplus and back to a deficit. This deficit had only worsen until 2013, where the economy finally began to rise again which shows the trend of rise in economy again.
Their economy has grown an astonishing 9-10% over the past thirty years; almost double of what it used to be decades ago. China is also the “world’s greatest manufacturer and its greatest market” (Rachman). The continuing growth of China's economy is a source of concern for not only the U.S. but surrounding nations as well. One could argue that the U.S. need not worry about China’s growth because of the spread of globalization and that western ideologies would influence China to turn to democracy. Yet China has still managed to “incorporate censorship and one party rule with continuing economic success” (Rachman) and remains a communist country.
Firstly, Inamdar’s 2013 article comparing China and India will be scrutinised. It demonstrates that China fared considerably better than India on a number of fronts including - but not limited to - GDP forecasts, purchasing managers indexes (PMIs), exports, consumer confidence, output growth and currency values for that particular year. Bosworth and Collins (2008) further confirm this, stating that China’s rapid growth has now lasted more than a quarter century. The private sector grew particularly well according to Kumar and Worm (2011) accounting for around 70 percent of China’s GDP in 2005, hence why becoming involved in the Chinese private business sector would be far more preferable to that of the public. Growth has also been observed in China and India’s agricultural, industrial and services industries.
Even though it has led to a lot of problems that need to be fixed, I personally think they will not mess this up, if anything it may slow down, but China will stay as a world and economic power. The main problem is the pollution and if they let that get out of hand eventually that will hurt them greatly. China’s expected to pass the USA in GDP soon. They have room to grow because if you leave the cities China is still a developing country. They have a lot of room to keep growing and if they continue like they have they will have be the world greatest power.
Although China makes great economic achievements and improvements every year, the economic achievements is not that glorious when divided by the large denominator of population. B... ... middle of paper ... ... rate is 8.77‰( SFPCC) in China, it brings a population increase of 19,090,000(SFPCC statics), which equals a medium-sized country in Europe. As a result, overpopulation may not be that serious in some other countries, it does be the most serous social problem in China. In order to solve the overpopulation issue, the government should pay great attention to it. Some policies, such as “ One China policy”, have already been made in China.
International trade promotes a higher real income of poor nations. Some of these third world countries offer unskilled labor, which should reduce inequality and poverty in poor nations. There is a high chance for poverty to decline if globalization increases the price of the goods manufactured by unskilled workers. In order for globalization to increase poor people’s revenue in developing countries like Zambia and Ethiopia, these developing nations must maintain a constant productivity of goods. Sustained high growth in international trade is the best way to reduce poverty as is the case with nations like India and China, which have reduced poverty over the past two decades (Harrison 460).