China Economy

China Economy

Introduction

The substantial growth of China, from a stagnant non-performing nation to an economic giant in a time span of just twenty eight years, has been undoubtedly phenomenal. It has declined the presumptions that no country can revive back from big slumps. China has emerged as the most powerful economy of the twenty-first century; in fact the second-largest of the world. This success had not been achieved overnight. China had faced its share of extreme social and political pressures and problems, and after going through decades of misery, it has finally emerged to be an influential country; one that is being compared to even the giant super power- the United States. Now the growth is reaching an enormous extent and China is all set to substitute the U.S. as the driver of global economy. While US have been growing as the world's largest deficit burden, China has been running with the world's greatest budget surplus.

China Economy

One of the most important aspects of China's economic growth is its manufacturing sector; China has developed a very balanced manufacturing sector for itself, one that is giving competitive pressures to almost every other economy. The state machinery of China is effectively being employed for its modernization. China has had the edge of establishing reforms in the marketplace ranging from ruling out collectivized agriculture, fiscal decentralization, better autonomy for state organizations and enterprises, and liberalization of foreign trade and investment. The quality of Chinese labor is gaining appreciation from even US and Japan. It is creating economies for scale for other countries and more nations are willing to employ Chinese labor since it is more educated, willing to work, and result oriented (Zheng et al, 2012).

China is a population of about 1.3 million people; its sheer size results in economies of scale and manufacturing growth. With its expanded military base (increment in military budget by 7.5 percent in 2010), China has been seriously taking part in political matters outside its border. This has further strengthened the country's position on the global pedestal. This has been a concern for the world which believes that Beijing is aiming to conquer the whole world militarily. Many different strategies that are adopted by China in recent times have further reinforced a common belief that China is set to conquer the world. But this is not being done merely with the use of missiles and bombs (Yang et al, 2012). Instead China is making use of soft power. It is following an aggressive trade policy for the West, granting low interest loan facilities for people in Africa and Latin America, imposing diplomatic pressures on their partners and providing the largest number of soldiers to the United Nations on its peacekeeping missions.

Economic Performance and Indicators

China faced a huge hit die to global economic crises with significant fall in exports and private investment. Yet, it revived back with the governments wise expansionary policies, marked by the second quarter of 2009. This recovery was mainly evident by the domestic demand, marked ...