China was a war-torn economy fifty years ago emerging from one of the most tumultuous periods in its history. Also during the twilight of the Mao era, around 20 years ago, there was nothing much to be said about China’s economy since things weren’t looking up. But the China of today propels a different narrative, that of the world’s fastest developing nation with a dramatic economic transformation that nobody would have predicted.
Deng Xiaoping opened China to the world and facilitated the market-oriented economic reforms. He was motivated by how the economies of Hong Kong, Japan, South Korea, Taiwan, and Singapore has thrived through foreign investment, free markets and trade. His open- door policy was paramount in releasing enormous talents and energies among the Chinese population. His policy reform placed China on the map and all of a sudden it became the ultimate attraction for foreign investments, welcomed foreign technology, and there was quite a remarkable increase in export and growth. The whole world was looking, and everybody wanted a piece of China from its talents to investments and by around 1996, China’s proportion of individuals living below poverty level reduced from 60% to 22%. The quality of life in China has risen a great deal, and the citizens are enjoying a much more economic freedom and choice.
Trade integration with the world
China has been big on integration into the global market, and so many countries are challenged. China’s rate of Commerce has expanded at twice the rate of the world trade. It has confidently found itself in the top ten trading nations in the world which are quite impressive. It recently became a member of World Trade Organization (WTO) which will enable it to open its market, even more, allow a more balanced growth and reduce the general uneasiness arising from China’s sudden transformations.
Financial Integration and Liberalization
China is now the world second largest destination for Foreign Direct Investment(FDI) which is estimated to be US$217 billion. Since China’s creditworthiness has improved, foreign commercial lending has considerably increased. There is also liberalization in retail and wholesale banking and finance, telecommunication and transport which is quite beneficial to China. These are just some of the precursors that will open China’s economy to more competitive practices, improve resource allocation, increase technology use and bring benefits to its consumers.
WTO membership is quite a plus for China since it will speed up its economic growth. With WTO’s de-politicization, China will become more stable, open up its markets, and allow for more free foreign investments in services and goods.
The future of Asia
Asia is rising, but with one economic giant at a time, the time is ripe for China. The Chinese economy is rapidly growing with quite a remarkable increase in overseas activities of Chinese enterprises with resources, plant and equipment acquisition taking center stage. China is in its twilight ages; the world is watching with envy and taking notes. Gone are the days when China was that secondary or even tertiary foreign language. It’s no longer just all about Germany and French but also Chinese learning in the curriculum. The world can’t afford to ignore China and as the saying goes, If you can’t beat them, join them. And the world is experiencing this China fever.
According to the global analytic firm HIS, in a decade’s time, China is set to overtake the US to become the world’s biggest economy. As The Chief Asia economist, IHS Rajiv Biswas puts it, “ Over the next ten years, China’s economy is expected to rebalance towards more rapid growth in consumption, which will help the structure of the domestic economy as well as growth in the Asia Pacific (APAC) as a region.
China’s initial economic model builds on the Soviet model which put a lot of emphasis on closed economy and large economy. Its jargon was “self-reliance” which has done both good and harm to its economy. Today’s China is focusing more on regional development and has taken steps to move neighboring other countries in Asia and strengthen ties and work collectively. There is a lot of Chinese talent around Asia and the world as a whole which clearly shows how attractive anything Chinese has become. Some of the steps that China has taken to move close to East Asia include the reintroduction of material incentives, efforts at energy conservation and de-collectivisation of agriculture.
China’s relationships and the Southeast Asia and Central Asia have improved through the years. China has shown a keen interest in facilitating peace in Afghanistan since, with stability in the said country, China will find a gateway to Europe and Central Asia. Also with long-term stability in Afghanistan, it will allow China to build roads, railways, and water projects in the country as part of the Silk Road Economic Belt initiative. When does China stop? Maybe you shouldn’t expect that since its foreign investments have kept increasing all through the years. It is the economic Goliath of Asia and is facilitating good ties with almost all the Asian countries.
Why you should learn and understand Chinese
China is the world’s top preferred destination for expats according to studies. Learning Chinese will not only boost your career prospects but also act as your gateway to many international corporations operating in Asia. Still, you might ask why you need to learn Chinese yet you are not planning to work overseas. It simple, if you want to promote peace in the next generation, make money in the industry, renewable energy, high tech, strategic commodities and international trade then you need to learn Chinese. China is the future, and it’s more like why did non-native English people feel the need to study English?
Recruitment companies looking for expats to be based in Asian or Chinese market, then the candidate must have desirable Chinese. It is, therefore, a necessity for individuals seeking to work in Asia, seeking work that deals with Asian Culture and History, finding work in multi-international corporations based in Asia or any other places.
China is investing in many companies. They are moving to Africa and even Latin America, working on projects and creating jobs. For global strategy and business interests then learn Chinese since China’s economy is huge and also scores big on job creation and influencing global economic and geopolitical affairs. In 20-30 years, China will become number one Economic and Political power in the known universe, and when that happens you wouldn’t even ask why you need to learn Chinese, you will just do it.
Today everybody wants to trade with China or at least stay on good terms with them. Chinese invest in all continents of the world, they build continental railways, buyout companies, keep the biggest foreign currency reserves and launch satellites. Who knows what they will do next? Whatever China is planning to do, better stay ready, and you can start that by understanding their business culture and the language- Mandarin.
China has such great potential in that by 2050; it will be able to actualize its goal of becoming a modern global economy. It will be able to engage as a responsible and equal partner in finance and trade and become one of the key economic players in not just Asia but the whole world. China’s ability to provide development aid and financing will also considerably grow as it becomes the world’s largest economy thus increasing its political weight and clout with other countries worldwide, especially in developing countries.
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