The Impact of the Global Financial Crisis on Chinese Economy Essay

The Impact of the Global Financial Crisis on Chinese Economy Essay

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The impact of the global financial crisis on Chinese economy

In the past two decades, China has enjoyed the one of the world’s fastest growing speeds. And for right now, China has been the most major contributor to the world economic growth. But in the recent years, the global financial crisis already did a huge damage to the Chinese growing economy. Especially in the aspect of exporting sector, China has been hit hardly by this crisis. The dramatic fall of external demand led to dramatic slowdown of the economy, and tens of millions of worker in the factor was laid-off during the crisis. Considering to Chinese government, it is critical for them to keep a stable growth which is viewed as the way to maintaining social stability. Because China, right now, is the major economic power in the world, and holding extremely huge amount of foreign exchange reserves, it is important to care about Chinese economy situation.
This literature review is designed to cover the recent research paper focus on the topic of the global financial crisis and how it influence Chinese economy.
The correlation of GDP growth between China and G-3 economies
Ligang Liu (2009) used the method of correlation analysis to illustrate the correlation between China and G-3 Economies, from 1981 to 2008. As he mentioned, trade and foreign direct investment are two important sources of economic growth in China. G-3 economies are not only important sources of capital inflows to China but also important markets for China’s exports. In 2008, the trade between China and G-3 took about 50 percentage of the Chinese total exports. This number indicates that Chinese economy and G-3 economy have a strong interdependency relationship.

From the table which concludes resul...

... middle of paper ...

...Policy Response, 2008 Institute of World Economy and Politics, Chinese Academy of Social Sciences
Ligang Liu, Impact of the Global Financial Crisis on China: Empirical Evidence and Policy Implications, China & World Economy, 1-23, Vol 17, No.6, 2009
Fung, K.C.(2009), “Global and Regional Supply Chains and Chinese Exports,” presented at EAI Distinguished Public Lecture, National University of Singapore.
Yuqing Xing(2009), The Global Economic Recession and Challenges to China’s Export-led Growth Strategy, Conference on Global Economic Crisis: Impact and Implications for Industrial Restructuring in Asia
Jikun Huang, Huayong Zhi, Zhurong Huang(Chinese Academy of Sciences), Scott Rozelle, (Stanford University), USA, John Giles (World Bank), The impact of the Global Financial Crisis on Off-farm Employment and Earnings in Rural China, World development Vol. 39, No.5.

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