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Global Economy vs China’s Economy

Global economic exertion is the co-relation of numerous countries in the world that either has a positive or negative impact on others. Over the past years, the competition has had minimal restrictions by various governments over national boundaries. There have been minimal executions on the rights of free markets. Free markets is a structure whereby prices of services and goods are decided by the open market and users, the supply and demand are considered free from any governments interference.

China is the nerve center and the largest manufacturing economy in the world; it also plays a major role as a leading exporter of goods. For over 30 years it was the fastest growing economy with an average of 10 percent growth rate. It also plays a major role in international trade and is a member of the WORLD TRADE ORGANIZATIONS (WTO). With this massive growth rate, there has also been a negative concern of the health dangers it has had on the world; its industrialization has had serious challenges of the environment leading to carbon emissions, and the quality of the air does meet the international health standards.

China is the nerve center and the largest manufacturing economy in the world; it also plays a major role as a leading exporter of goods. For over 30 years it was the fastest growing economy with an average of 10 percent growth rate. It also plays a major role in international trade and is a member of the WORLD TRADE ORGANIZATIONS (WTO). With this massive growth rate, there has also been a negative concern of the health dangers it has had on the world; its industrialization has had serious challenges of the environment leading to carbon emissions, and the quality of the air does meet the international health standards.

China in the recent past was among the poorest countries in the world; its average growth rate is considered almost one-fifth of the U.S at the present. In 2015 China’s economy was considered the slowest it has ever been in the last 25years, it reduced from 10 percent to an imaginable 6 percent. It is also considered that china’s economy in the next three years would suffer a major blow because of its looming real estate and over-manufacturing and triggers an even bigger problem as they are related. The flooded markets of real estate will need to drop to woo potential customers.

China’s economy today faces a lot of problems some that have been considered almost next to impossible to come up with a solution. Due to its reduced growth rate, economists argue that it is more difficult time China that it faces to sustain its slow growing rate. Due to this challenge, China has opted to outline a five-year plan that is meant to achieve continuous development; it had also earned massive reputation as an industrial powerhouse

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Some of the issues that China faces in 2016 include the declining of their money supply; their factories are said to have been producing more than what can be sold. Some of the major advantages had to its economic growth were investments and lending out of debts to other countries but has been a different story as it emerges that it cannot only depend on this. Its investment in real estate has greatly harmed its economy as overcrowding in the market; there has also been a problem of loan defaults which has grown to 43% as many companies are operating at a loss and greatly been felt by the whole country. Some of the problems companies face include increased competition, rising operational costs and labor cost.

Some of the economic facts that China faces include:

A) Increased demand for meat-people with higher incomes and in live in urban areas has changed their diet habits. Nutrition shows a growing demand for meat and has increased more than tenfold of chicken beef and pork and overtook U.S in consumer basis and the largest consumer of meat in the world.

B) China produces the largest amount of rice and importer-China being the world’s largest producer of rice and also the biggest importer. It also increased its rice metric tons to 3 million and the concern for rice that is domestically consumed has led to its high rate of imports.

C) China is Africa’s major trading partner-China has good relationships with Africa that as even overlooked the U.S, some the major relations include agriculture sector implementing Chinas agricultural technologies.

D) The environmental problems: the increasing concern of air pollution in as major concern, a more worrying issue is the water contamination and the demand for better food safety regulations.

E) Renewable energy-China is the largest emitter of greenhouse gasses and is on the move of trying to conserve environment with low carbon and energy efficiency a fact that has been a crisis of the global environment and has led to setting up of strict policies to curb these problems.

F) Climatic change due to the drastic change that China faces due to climatic changes it has agreed to deal with the U.S in the reduction of low carbon cities and the urbanization trends.

China has surpassed its fears and has emerged as the second-largest economy after the United States a fact the Americans will not be happy with and an added advantage due its manufacturing and exporting over the years and with a 10 percent coming from the agricultural sector, the Chinese overtook the U.S economy in terms of G.D.P and continued to grow at an average of 7 percent a decrease from its original 10 percent a fact that is of great concern to its government. Its decrease is a pinching fact it affects other countries as it impacts globally on the economy.
Some of the factors that have an effect on China’s global economy certainly have a big impact and include
Oil- which has seen a drop in the oil prices undermining some parts of the US and other capital goods by manufacturers. Oil producers are the ones who lose a lot, but consumers like China gain hence causing a serious problem.

Inflation-Chinese commodities are known to cheap and affordable, In China’s go-slow it impacts a lot of the world economies, advanced economies appear greatly suffer from this inflation and triggers debt defaulters.

Trade-countries that directly dependent on China for commodities likes machines, oil and metals will eventually grow weaker than the expected economy hence reducing its dependency rate.

China contributes largely to the world’s economy and is depended on upon by other countries majorly in that it produces a lot of manufactured products and also affects the economy due its low growth of G.D.P and environmental factors that have been of major concern which causes which need to be addressed to bring global stabilization.

Global Economy vs China’s Economy
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