Chinese Economy China, a nation with population well above one billion and amongst top economies of the world is a strong force amongst the most dominant developed nations of the world. The global recession that effected the entire world economy also had some impact on the Chinese economy and trends have been relatively low in the first quarter of the current year compared to the previous year same session. Despite the tough times in market, China has maintained its G. D.P (Gross Domestic Product) growth and it has increased by staggering amount of 8.1 percent compared to last year.
Its major strength has been its exports market. Few of its salient items of export are electronic goods, automobile spare parts, machinery, chemicals to name a few. It has trading ties with almost all nations of the world especially its neighbors and across the continents as well. The bilateral trades with various countries are worth mentioning. The last three decades have seen a change in trend in operations by the Chinese administration towards its economy; it is more of market oriented now as compared to international trade dependency in the past. Source: www. Tradingeconomics. com/National Bureau of Statistics of China The recent trends have been relatively mixed and the first quarter of current year saw a growth of 20 percent in the area of fixed assets investment which compared to last year was considerably low, and in the category of real estate investments a growth of approximately 23 percent was observed, this was also 4 percent less than the values recorded last year (Economics). The economy has been on the rise since reforms that took place nearly two and a half decades back in form of free market reforms. This was made possible courtesy the reforms put forward by Deng Xiaoping (Wong and Zheng).
The real secret is intensive amount of exports and contribution of private sector. The convergence of state owned mega enterprises into private enterprises has been another positive step taken by the government which has paid dividends in recent years. Transformation from government controlled to private sector participation has led to nurturing of economy. Economic growth is being reported as 9.5 percent and is expected to raise high in coming years.
Various industries integration with international players and supply chain stakeholders is another reason to such a prosperous economy. Foreign investors are enjoying a lot of perks and incentives in terms of returns and investment courtesy country’s economic friendly policies (Herd and Dougherty). Collaboration with World Trade Organization has further smoothened the ways for private investors in wake of the nullification of laws that barred private investors from stepping into various sectors. Government’s interest and participation towards a free trading environment for private investors has paved the way for further progressive economy.
An equal effort has been put into the education sector as well, since it is a known fact that the educated lot makes a great difference to the economy and progress of any nation. With annual increase of nearly 10 percent in G. D.P, China truly stands as a threat to the existing world power United States and with stable economy and international strategic approach; it is bound to become the next super power. Bibliography: 1-Economics, Trading. China GDP Growth Rate. April 2012. 24th April 2012 . 2-Herd, Richard and Sean Dougherty.
China’s economy: A remarkable transformation. September 2005. 24th April 2012 . 3-Wong, John and Yongnian Zheng. The Nanxun Legacy and Chinas Development in the Post-Deng Era. World Scientific, 2001.