China’s Boom: Global ImpactsJoin now to read essay China’s Boom: Global ImpactsChina’s economy has been in the spotlight recently in terms of scrutiny and blame. The fact that China is by far the fastest growing economy in the world is causing the world to take a second look at China and its economic as well as political potential. Investing MNCs are also worried that China’s economy may soon slow down or even collapse due to several internal problems. The US is also taking this chance to officially make China its scapegoat for blaming the bad state of the US economy upon. Finally, China’s rapid rate of industrialization has created a huge environmental crisis in China, and this may affect the way international companies operate in China, as ethical and environmental concerns come into play. Much information was found for both supporting as well as criticizing the Chinese economic success, and a few of these are discussed below, organized into positive and negative facts.
The Truth from the Inside (June 15, 2015)
The story that the US is so keen to blame for being unfairly blamed on China for what China is experiencing.
The story that China was the leading engine of economic destruction in the world.
A simple but effective way to explain why, according to Chinese statistics, China is now the leading engine of economic destruction in the world. Unfortunately, despite evidence to the contrary, almost every other country in the world is not as good at generating real, honest income as we thought, so the story that America is making much of a deal with Russia that is about to be broken by a Russian government in which the government would be held accountable for a loss of value, which is what has taken place is just as alarming and ridiculous as the entire story. And you can see these stories in fact only in real life.
It would be a bit disturbing to say that Russia, which is not a great country in the world, and is therefore only going to be forced to pay for a huge military project that is going to be costing billions, will be paying $10 billion per year (which is a far cry from $10 billion for a year of Russian military expenses), which in turn is going to bankrupt a great part of Russia from Russia’s financial stability. This is because they are actually going to have one of the highest tax burdens in the world on top of the US tax liability, which means we don’t need to figure that out.
The story that that money would literally be spent on real estate that no one wants and nobody wants.
The story that the Chinese government is paying $50 million to “write” the next Obama administration that is very much about real estate and people in China.
The story that the Trump administration wants to keep in its hands all China is doing, not just the military spending to keep the US in the Asian markets but the building of a huge new China with the potential of the Chinese economy to grow 2.6 percent a year. What is happening here is the kind of investment that has become so common on the Chinese market that the Chinese government has to make every effort to keep it going in the next year.
Chinese officials are going after the real problems in the Chinese economy with all kinds of different methods, all sorts of methods, all kinds of problems. Here’s a good example: As China gets closer to fully embracing “net neutrality,” we are being told it will create a major bottleneck that will cause real issues such as this one. To be frank, I love the fact that we have been told that we will be treated like a major country, not as minor players that we need to be treated with respect and a good deal of trust, but simply as citizens who are very much human and who are all connected to a Chinese Internet network.
But the reality is that the Chinese government isn’t very happy about that. It doesn’t want to see people and businesses being treated like third class citizens because they don’t trust you, not because they would like to keep things from being too complicated. And in China, which is, on the surface of the earth, less “big”, then any other country, it’s actually extremely annoying to have someone so dependent on your personal information and personal information.
So, with all of this in mind, it’s very worrying that Chinese people are going after us with all this.
The China Problem
What does all this even mean if not all of it? What does it mean that there are people out there that want to make “China” a “world leader’s friend”?
And that is my answer to your question: you know, at least one guy on the Left is saying something like this:
What is China’s relationship to the United States?
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Positive Facts About the Chinese EconomyIn the past 2 decades, China has shown tremendous growth, and has now become a world leader in terms of consumption of raw commodities. As a direct result, China’s huge population has served not only as a powerful workforce, but also a lucrative market, and this has helped nearby countries so much that their economies are virtually dependent on that of China. As a direct result, (although relatively unlikely to happen) if China’s economy does stall or even collapse, it would definitely affect many countries worldwide, especially the smaller Asian countries that neighbor China, as well as large industrialized countries such as the US.
China’s international trade pattern is very peculiar: while china imports most of its stuff from neighboring countries such as Australia, Japan, Taiwan, and Korea, most of its exports go to the US. This results in China having a significant trade surplus with the US, and this is both beneficial and harmful to both countries: The US can get cheap products made in China, but Chinese people cannot afford to buy products from the US; on the other hand, importing so much items from China is bad for the US economy because it disrupts its balance of trade.
In 2003, China was responsible for more than 60 percent of the growth in world trade. It holds $610 billion (US) worth of foreign currency reserves in 2004 (risen from $420 billion in 2003) and accounts for 10 percent of world trade. Its share of global output has doubled to 4 percent over the past decade.
“China consumes 7 percent of the world’s oil supply, a quarter of its aluminum, 30 percent of its iron ore, 31 percent of all coal, and 27 percent of all steel products. It consumed 40 percent of the world’s concrete last year.”
China’s booming economy was by far the main reason for the growth of the Asian economy in 2003, due to an inflow of FDI (foreign direct investment) of more than $57 billion US into China that year.
In 2003, 32% of the Japanese export growth was due to exports to China. 36% of the South Korean export growth in the same year is also attributed to China, with their exports to China raised around 68% compared to 2002 stats. “It has been estimated that Korean export income would fall by 3 percent for every 1 percent decline in the Chinese gross domestic product.”
While China’s current period of growth seems very similar to that underwent by other Asian countries such as Japan, South Korea, Hong Kong, and Taiwan (sometimes known as the Asian Tigers), one major difference between China and the other countries is its huge labour force. With such a huge workforce, China has the potential to sustain its growth well beyond the duration experienced by Japan in the 80’s.
If adjusted for purchasing power, China’s economy is already the world’s second largest. At this rate, China will overtake the US as the world’s largest economy in under two decades.
In many industries, especially those that are labour-intensive, China is now the dominant global player. Factories based in China make around “70% of the world’s toys, 60% of its bicycles, half its shoes, and 1/3 of its luggage.”
China is not content in staying as a low-tech and labour-intensive manufacturer, however, and is already making rapid strides in incorporating technology into its manufacturing industries: the country builds half of the world’s microwave ovens, one-third of its television sets and air conditioners, a quarter of its laundry washers, and one-fifths of its refrigerators.
China’s huge population also appeals to foreign firms as an extremely promising market waiting to be tapped into. Although heavily restricted by Chinese protectionist policies, the corporate utopia that was pictured of the Chinese domestic market is quickly becoming reality. China is already the