The Growth of Chinas Economy Essay - 1009 Words

Since the reform and opening up, the economy of China grows significantly, as an emerging economy, Chinas economy has made tremendous contributions to the global economy, and Renminbi has become one of the most important currency in the world. According to the survey conducted by China National Bureau of Statistics found that from 1979 to 2012, China has attained an annual average growth rate of 9.8% for its national economy, while the annual average growth of the world economy is only 2.8 % during the same period. In past 30 years, Chinas GDP surpassed Japan’s, China became the world s second largest economy, in addition, the huge total volume of trade makes China become the world s largest trading nation. The contribution of China’s†¦show more content†¦These effective strategies helped Hong Kong overcome the financial crisis. All these facts fully demonstrated that China is a responsible big country. After the Asia financial crisis, the importance of Chinas economy has been brought into focus; Chinas neighboring countries have begun to recognize the influence of the Renminbi. 2008 financial crisis caused severe trauma on the world economy, although the economy of China grew moderately, China s financial system is very fragile, the financial laws and regulations are deficient, the structure of foreign change reserve is very risky, because China has huge foreign exchange reserve of US dollar, which makes China also suffer from the financial crisis. Financial crisis is caused by the American subprime mortgage, to combat the financial crisis, the United States issued a substantial amount of U.S. dollars, which makes the U.S. dollar depreciate continuously, and this action makes many countries that have great amount of foreign exchange reserves in U.S. dollars suffer huge losses. China has the largest foreign exchange reserves in the world, in 2008, China’s foreign exchange reserves had reached $ 2 trillion, the continues devaluation of the U.S. dollar make China suffered a lot, thus the international capital system based on U.S. dollars has been questioned, China and other countries that also hold a huge amount of U.S. dollars started to build a new international capital structure. In 2011, China, JapanShow MoreRelatedThe Economic And Economic Growth Of Chinas Economy1341 Words   |  6 Pages 2016 Coming out of a lackluster 2015, GDP growth slowed to 1.5%. Confidence of investors and consumers was unable to make significant gains as a result of the Presidential election and global uncertainty. The outcome of the 2016 election had a great affect on the US economy and the fiscal and monetary policies that could be put in place. Uncertainty over taxes, regulations, and trade following the election have led to a slowdown of growth. Consumption and government spending both increasedRead MoreChina s Growth Rate Of Steady State Essay887 Words   |  4 PagesIntroduction Krugman (1994) summarizes two sources of growth that help to expand the national economy. They are increasing input and increasing output per unit of input. Because of the diminishing return to capital, increasing input can only increase the output level in the long run. Therefore, increasing input, such as increasing employment opportunities, increasing the education level of workers, and increasing the stocks of physical capitals, is not sustainable in the long run. On the other handRead MoreChinas Role in the World Economy Essay1417 Words   |  6 PagesChina’s Role in the World Economy Abstract This paper aims to discuss China’s role as a major player in the global economy and the impact China will continue to have on the global economy. This paper will offer a summary of two articles entitled, China Pushes for Bigger Role in Reshaping the World Economy and Singapore sees India, China Role Growing, which discusses China’s transformation into a dynamic private sector-led economy and its integration into the global economy. I will also offerRead MoreDeveloping The National Economy : Increasing Input And Increasing Output Per Unit Of Input Essay887 Words   |  4 PagesLiterature Review Introduction Krugman (1994) summarizes two sources of growth that help to expand the national economy: increasing input and increasing output per unit of input. Because of the diminishing return to capital, increasing input can only increase the output level in the long run. Therefore, increasing input, such as increasing employment opportunities, the education level of workers, and the stocks of physical capitals, is not sustainable in the long run. On the other hand, increasingRead MoreChina s Impact On China1321 Words   |  6 Pages Moreover, after setting up economic institutions and an industrial base, Deng Xiaoping established various Special Economic Zones in China that allowed for increased foreign investment, helping to develop China’s commercial growth. As described before, when Deng Xiaoping came to power, his goal was for China to fulfill the Four Modernizations: modernization in agriculture; industry; science and technology; and defense. Deng believed that the only way Chin a could keep up with Western countries wasRead MoreChinas Emergence as a Superpower1552 Words   |  7 Pagesfund manager Chinas population is one of the greatest natural resources on the planet. Its citizens are becoming more educated, diligent, aspiring and comprise nearly a quarter of the worlds population. The combination of Chinas massive size and rapid modernization is creating the framework for an emerging superpower. Chinas growing economy is not only gaining international prestige, but its confidence has soared as it continues to be the worlds fastest growing economy for the past threeRead MoreWhy China s Fall Would Have On The Global Economy872 Words   |  4 Pagesdiscuss what impact you consider China’s fall would have on the global economy. The Chinese economy can be viewed as the cornerstone of the global economy. The current global GDP, measured in purchasing power parity of nearly 60%, as well as current international rate of growth at more than 80%, is primarily accounted for by China and other neighbouring middle-income countries, such as India or Vietnam.[1] These numbers are significant in understanding our global economy, which is widely interconnectedRead MoreEconomics Hsc China Essay641 Words   |  3 PagesFor an economy other than Australia, explain how government development strategies have responded to the process of globalisation. Globalisation refers to the process of increased integration between different countries and economies and the increased impact of international influences on all aspects of life and economic activity. Since 1978, the Chinese â€Å"tiger† economy has embarked on a process of social and economic reform designed to improve the quality of life of the population and open theRead MoreSimilarities And Differences Between China And Australia1236 Words   |  5 PagesDifferences between China and Australia’s Economies Introduction The Chinese and Australia economies have many similarities and differences, including the size of the economies, growth rates, unemployment, inequality, standard of living, environmental issues and the roles the different governments have in influencing and modifying these factors of the economy. Size of Economy The GDP is the total market value of goods and services in an economy over a period of time. China’s GDP is significantly larger thanRead MoreChina s Economic Impact On China883 Words   |  4 PagesChina becomes the second largest economy in this world and it has showed the remarkable economic performance over the last two decades after The United States. China’s gross domestic product (GDP) as Share of World GDP at PPP 25 years ago only reached around 4.7%, now China contributes 16.32% of world GDP. China exports the relative cheap products that lowered consumer prices across the globe, and its imports have had a major impact on global commodity prices. China also has become a major hub of