Thus, precarious situation of the Chinese economy in the world is still having a significant impact. Which accounts for the largest portion. First, it’s the instability of the job market. 1.3 billion market as well as a cheap and abundant labor has provided emergence of the Chinese economy. Because of this, many national companies leave their countries by moving factories to China, so Japan, South Korea and Taiwan as well as damage to the U.S. labor market.
The one major... ... middle of paper ... ...f the Yuan increases the risk for default on non-performing loans for the country’s banking sector. China’s banking system has a significant amount of non-performing loans and although there’s been a mobilization to solve this problem, with many of the non-performing loans being exported and bought by large US investors, it is still a problem that exists to some extent. An increase in the value of the Yuan will automatically increase the value of the non-performing loans. Also, the Chinese government has massive amounts of US dollar assets, which they used to peg the Yuan. These assets will lose value in proportion with the revaluation of the Yuan.
Most investors fear economic loss and as a result do not invest. Small companies unlike large companies often do not survive the changes and often go bankrupt. Most governments as a result of recession have less money to spend attributable to an increase in national debt. As a result, struggling businesses and banks that depend on government money to survive end up depending on the federal aid for survival. It would therefore be important to understand the adverse effects of recession as they are along the gender line... ... middle of paper ... ...at the tendency of the study data collected to spread around the center, this will be done through either finding the range by subtracting the lowest value from the highest value and finding the range or through standard deviation The plan also involves inferential statistics that include trend analysis, analysis of variance models as well as multiple regression and correlation.
Trade liberalisation and the reduction in bureaucracy has enabled overseas firms to enter the Chinese market to take advantage of cheap and vast labour, creating millions of jobs. However, the privatisation of state-owned enterprises in the face of international competition as well as economic restructuring has also simultaneously led to mass job losses, especially in rural areas, posing a challenge to the Chinese economy and the government. During the period 2009 to 2015, China’s urban unemployment rate averaged 4.8% which is lower than the world average of around 7%. However, the real unemployment situation is likely to be more serious as migrant workers and newly graduated students are not included in government statistics on unemployment. As well as this, China has had historically low levels of unemployment, thus, a trend of increasing unemployment levels indicates a worsening situation.
An increased amount of debt owed to China therefore works to counter the US influence in world politics in favor of China. Moreover, this has aided to keep the interest rates in the US low. This is to the advantage of the US economy though. Were the interest rates to rise, the recession of the US economy would soar uncontrollably. Therefore, the holding of a big US debt by China leads to China having huge influence over US policies; foreign relations policy and also economic policies.
The above video emphasises on the severeness of overpopulation. Overpopulation is actually one of the core sources of problems for people, worldwide, not only for people in China. However, the problem is more prominent in China, compared to the other parts of the world. China has the highest population in the world, encompassing 1.2 billion or twenty one percent of the world’s population. She faces serious social and economic problems associated with overpopulation in the years to come.
People are poor; China has improved in recent years, but still much behind. China is running out of resources, the large population consumes more than they have. Almost a quarter of China's land is desert, no fertility what so ever. There is no chance for people to utilize it. The demand for jobs have increased greatly, even with foreign investment poverty still affects much of the population.
Franklin D. Roosevelt scorned and worked against the minority in the 1920’s that had such a powerful influence over the majority of the country at that time (Sachs). However the economic and political factors differ today from 1920’s. China and globalization add even more challenges to solving the economic crisis at hand (Sachs). In the present economy, “profits are being earned, and kept, abroad” (Sachs, 2011, p. 30). In the U. S. workers are losing jobs as more and more companies are moving operations off shore, these workers also must compete with higher educated individuals and oversea workers for jobs, while manufacturing and other low skill jobs continue to shrink (Sachs).
Considering the Mixed re... ... middle of paper ... ...current trade deficit. Yes there will be benefits associated with increase global competitiveness of the US products. However, there are other factors not associated with Chinese currency affecting the US global trade competitiveness. A case in point is the fact that from 2005 to 2008 when China allowed it currency to appreciate by 21%, a 30.1% rise of US trade deficit with China was still experienced. In addition by further putting pressure on China to devalue its currency, US runs a major risk of losing on capital inflows coming particularly from Chinese investors.
China has recently fallen into an economic slump. Because it is so involved with other countries around the world, this economic slump that China is going through is also affecting the other countries as well. The environment has also been affected negatively by globalization. There are many polluting industries, wastes, ecologically destructive practices, and air and water pollution. The reason this is happening is because people see China as a vastly growing country, corporations and companies want to move there because of the great opportunities they see to grow.