...www.sciedu.ca/rwe Research in World Economy Vol. 2, No. 2; October 2011 An Analysis of Emerging China’s Economy and its Influence on World Economy Zhijun Sheng (Corresponding author) School of Economics and Management, Changchun University of Science and Technology Changchun 130022, China Tel: +86-135-0445-7191 Email: shengzhijun412@126.com Jing Ma School of Economics and Management, Changchun University of Science and Technology Changchun 130022, China Email: majingdoll@hotmail.com Received: July 22, 2011 Accepted: August 21, 2011 doi:10.5430/rwe.v2n2p21 Abstract Since entering 21st century, the Chinese economy has obtained unprecedented development opportunity, growing rapidly. We emphatically analyze the remarkable performance and the immense changes of the Chinese economy in economic output, foreign trade, foreign investment and enterprise strength, etc. Finally, we point out the reality and potential influence and contribution of emerging China on world economy. Keywords: China’s Economy, Emerging Market, World Economy At the end of 2010, China’s Social Science Institute issued “World economy Yellow Paper” and “International Situation Yellow Paper”, which pointed out China has become the second biggest economy in the world, and has been in the leading position on many aspect. For instance, China ranks second on multinational merger and acquisition and surpasses UK, France and Germany to become the International Monetary Fund's third...
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...BMGT 110 China’s Global Economy Anthony Fleury Xinhua reported that Beijing recorded 80% blue sky days in the first quarter of 2009. The concept that there is a blue sky day is unusual for most of the world, but it represents the price that China has paid for its rapid economic growth trajectory. As cities sprout from villages and a labor force in the hundreds of millions is mobilized, China has experienced a double-digit GDP growth for much of the past thirty years. This growth however is under threat from several sources. The environmental consequences of growth are just one threat. China also faces chronic resource shortages – its industry does not want for coal but the Chinese people do struggle for things such as shortages of oil, food and clean water. The PRC also faces political tests as well, including Taiwan, Tibet and Xinjiang. Political tensions with the former could destabilize all of Asia if not the world. The tensions in the western part of China represent the social unrest that the Communist government’s march towards wealth has created. Even amongst Han, there is considerable disparity of wealth between regions and classes, and these disparities may very well threaten China’s future. This paper will analyze each of these critical issues in turn, and then synthesize the issues into an assessment for the future of China’s economic growth. All economies depend on resources for their growth. Output is determined by the availability of labor,...
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...First name, last name: Professor/tutor: Course title: Date of submission: Economic Impact of China’s Demographics Introduction Policies regarding population development are a major factor towards determining China’s future economic prospects. China is the most populous country in the world, doubling its population over the last 60 years (Lee & Qingjun 58). For the rapid population growth that China has achieved over the last few decades, controlling and monitoring the growth of the population has been at the core of the country’s administration. Policies have to be implemented that actively seek to implement demographic recommendations and stipulations with the aim of developing a sustainable population base compatible with the economy. Institution of population control legislation such as the one-child policy has effectively controlled the mushrooming population growth that distinguished China from the other world demographics. The result of the population control policy in the face of reduced death rates and low fertility rates has painted a grim picture for the Chinese economy. The result of the envisaged scenario is an increase of the number of old people in the country and a continual decline in the number of young people. This paper focuses on highlighting the potential challenges the country faces from having a reduced young workforce in an economy growing at a phenomenal rate. Due to the overhanging specter of an unsustainable population in the country with unchecked...
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...Discuss how and why China’s relations with the world economy change after 1993? The economic reforms of China, called “open doors policy” starting in 1978 with Deng Xiaoping –the leader of the Communist Party of China (CPC) - marked the beginning of a new era where China initiated to open its economy to the world. (Nolan, 2005) In 1992, during his Southern tour, Deng Xiaoping introduced the term of “Socialist Market economy” to describe Chinese economy and in 1993 the term was added to the Constitution, which means that socialism was still the basis of the economical system but that the State also protected the market economy from now on and therefore was ready to go international. This essay will discuss to which extent 1993 was the changing year for China’s international economic relations. Naughton (2007) refers to the 1990s reform in China as a “reform with losers” meaning that at this point, Chinese economy was moving towards a transformation to capitalism. They started to strengthen the institutions of market economy and began to privatize the State sector. The State-owned Enterprises (SOE) reform - specifically the “grasping the big, letting go of the small” strategy - was aimed to improve the efficiency and corporate governance of the State companies by keeping the key resources (such as infrastructure construction, telecommunications, financial services, energy and raw materials) (GENG, X., YANG, X. and JANUS, A. 2009) and the big companies and let go the...
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...China’s Exchange Rate Regime and its Effects on the U.S. Economy John B. Taylor Under Secretary of Treasury for International Affairs Testimony before the Subcommittee on Domestic and International Monetary Policy, Trade, and Technology House Committee on Financial Services October 1, 2003 Chairman King, Ranking Member Maloney, Members of the Subcommittee, thank you for giving me the opportunity to testify on China’s exchange rate regime and its effects on the U.S. economy. This is the fifth time that I have appeared before this Subcommittee as an Administration witness. Each time I have been asked to focus on an important facet of our international economic policy. I have testified on our policy toward emerging markets, on our policy for developing countries-including reforms at the Multilateral Development Banks and the new Millennium Challenge Account, and on our policy to remove barriers to the free flow of capital in our trade agreements-including those with Singapore and Chile. In each of these cases, an underlying goal of our policy has been to raise economic growth and increase economic stability around the world, and in doing so benefit the American people with more jobs, more security, and a better life. My testimony today on China’s exchange rate regime will be no different in this respect. The Overall International Economic Strategy for Growth and Stability The Administration’s major economic endeavor now is to strengthen the economic recovery...
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...How China’s Currency Manipulation Affects US Economy Howe School of Technology Management Principles of Economics How China’s Currency Manipulation Affects US Economy Currency intervention is the action of one or more governments, central banks, or speculators that increases or reduces the value of a particular currency against another currency – this is according to Wikipedia. From January until October in 2010 imports from China to the United States this year were $299,026.0 million and only $72,276.2 million in exports to China, leaving a U.S. trade deficit of -226,749.8 million - this is according to the U.S Census Bureau U.S Foreign Trade Statistics. Here we can examine that Chinese imports to the United States were too high which makes U.S. Gross Domestic Profit (GDP) shrink because imports are subtracted to the Gross Domestic Profit. This trade deficit causes damage to the United States manufacturers and destroys jobs. Chinese products are very attractive because their low labor cost. When U.S. people purchase Chinese manufacturing goods, their manufactures are compensated in dollars which are placed in a United States bank account. Then, the Chinese need to exchange the dollars to Yuan and as a result via their banks they sell the dollars to the Chinese Central Bank which is known as the People’s Bank of China. Given that the U.S trade with China does not balance, the result will be a shortage of the Yuan and a surplus...
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...How China's Black Monday could affect global economies By Ravender Sembhy August 24, 2015 14:11 BST After the Chinese stock market suffered its biggest one day loss since 2007, plummeting 8.5%, the country's media have dubbed today "Black Monday". The ripple effect has been felt across the globe, with indices nosediving one after the other. The FTSE 100 fell below the 6,000 mark for the first time since 2013, and Japan's Nikkei, the German DAX and France's CAC all followed suit in recording heavy losses. The Shanghai Composite lost gains made in 2015, plunging 8.5%. Why is this happening? Slowing growth in the world's second largest economy has been spooking investors since the beginning of the year, which has contributed to the loss. China is targeting growth of 7% in 2015, down from 7.4% in 2014, as the country attempts to move from an export-led economy to one more focused on consumer spending. However, there are now worries it will fail to hit forecasts and economic data come in weaker. Earlier in 2015, investors signalled their concern about the slowdown by embarking on a selling frenzy that wiped out more than 30% – some $3tn (£1.9tn, €2.7tn) – of China's equity market value in one month. The Chinese government has responded by injecting billions into blue chip stocks, permitting its state pension fund to invest in domestic shares for the first time and by devaluing its currency in a bid to boost exports. But none of these actions appears to have had the desired...
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...foreign investment. In turn, they are investing billions of dollars abroad. The collapse in international export markets that accompanied the global financial crisis of 2009 initially hit China hard. But they stand strong their economy and quickly returning to growth. In 2011, China formally overtook Japan to become the world's second-largest economy. Todays, the connection between China's economy and global economy is becoming tighter. In addition, more foreigners have expressed their admirations on China's economic achievements. They generally believe that the global economic development cannot go without China. The healthy and steady economic development of China is a huge contribution to the world. As the globalization is accelerating, the mutual dependence between China's economy and global economy has also strengthened. China is developing its transformation of economic growth mode and its economic structural adjustment. China's economic development is also becoming steadier and injecting new energy into the regional and global economy. The negative impact caused by the international financial crisis still has not completely solved but China's steady economic development gives the world's confidence on the early recovery of the global economy. China is categories as the fastest growing country in East Asia. Between the year of 1979 and 2001, Chinese real GDP grew from $177 billion to $1.16 trillion regarding to 2001 prices and real GDP per capita grew from $183 to $920...
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...situation analysis after China’s accession to WTO Introduction Since the reform and opening-up policy operated in China in 1978, China has already experienced a process of economic development and international trade improvement. In the early 1980s, China had tried to take several steps to end its economic isolation condition. After that, accompanying with the accession to WTO, China had received a new tide of development no matter in the field of economy or world trade. It has no doubt that China’s accession into WTO would bring about tremendous changes in China’s economic performance. Known as “World Trade Organization”, WTO is one of the most important international economic organizations and also a platform for ideas’ negotiation among different countries. Currently WTO has 159 members and is regarded as the "Economic United Nations”. China has joined the World Trade Organization as the 143rd member of it. From then on, China has made a significant economic improvement in foreign and international trade area, whereas, it also has brought some problems underlying the surface economy boom. And as some experts’ sayings, the disadvantages are far more than the advantages that WTO has brought along these 12 years’ development based on the analysis on the current economic environment, which has also been a challenge to China’s economy and future development from my point of view. The benefits that WTO has brought into China As some experts’ saying, China’s accession would definitely...
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...China’s Slowdown Has a Global Impact 1. Which negative effects and in which countries will China’s slowdown cause? The fact that economic growth in China, the world’s second-biggest economy after U.S. has been slowing since 2007’s peak has made impact on the rest of the world. There are various negative effects due to slowdown such as lower energy and raw materials prices for the rest of the world. Maruli Sitorus, a palm oil plantation owner has stated that his income has been halved over the past years as prices for palm oil-used in cooking oil and fuels-have slipped. He refers this slip to the weak demand from China. However, China’s objective is to reshape its economy to be less reliant on construction and heavy industry, and more reliant on consumer spending. Mr. Sitorus, had to cut the number of workers on his 25-hectare farm from 12 to 6 and put off fertilizing his fields and fixing his trucks. Another example of negative effects of China’s slowdown took place in Australia. Anthony Walsh, managing director for Ausco Modular, an Australian company that builds temporary camps for mine workers in Karratha, a mining town on Australia’s northwest coast. He has stated that a fifth of rooms once occupied by miners flown in from Australia’s east are empty, rents went down by 20%. Due to the fall, unemployment rate in Australia, a mining powerhouse is 5.7%, it’s highest in 4 years. While China’s slowdown hurts places like Australia, it also means low energy...
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...relinquish their position as hegemon. The perceived threat of a rising China; especially when there are several publications of books, articles and anti-China bashing blogs that helps to exacerbate these fears. China’s increase in soft power and hard power does not mean it is a threat to the global security; China’s development and their economic growth relies on peaceful relations with the West because China needs access to their domestic markets. The main reason why China is considered to be a threat to the West is because they cannot maintain their domination on the world stage, and has to make room for developing nations like the BRICS countries (Brazil, Russia, India, China and South Africa). Yet China simply wants to develop and increase the living standards of its people, and no desire of aggressive military actions. Thus, the foundation of why China is still been seen as a threat will be explored but the conception will be dismissed because as a growing superpower these steps are logical and any country that is in the same situation as China now will simply follow the same road. The following paper will examine different viewpoints regarding if the China threat theory is feasible or not; in order to come to the above conclusion. The United States perspective on China’s military progress Based on the information stated in the United States Department of Defense report (2011) it represent as though China is a possible threat especially if it...
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...the rise of China, following the enhanced economic and trade relationship between China and Asian economies, and China’s increasing importance in the world economy, China’s national currency, the renminbi (RMB) will be getting global from Asia. As regional internationalization of RMB is doubleedged, in order to eliminate the financial risks brought by this process, maximize the benefits, it is necessary for China to consider the trade off between costs and benefits of RMB internationalization. RMB internationalization is a dynamic process, in accordance with the different level of the process, the phased strategy should be implemented, and the corresponding policies should be pursued too. Key word: RMB internationalization Cost and benefit Roadmap Introduction If you travel in the Asian region, you will notice that the Chinese renminbi is appearing more often in shops and restaurants, driven by the rapid growth in mainland tourist volumes. Will Chinese Renminbi be the next world currency? Since 2000, RMB internationalization has attracted great attention from the policymakers and the academics both at home and abroad. There is sizable RMB circulation in China’s neighboring countries and economies, even RMB can be fully convertible in some developed countries, some of neighboring countries and economies treated RMB as a reserve currency. This is a new economic phenomenon for both China and the world. Because in economic development history...
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...The Effects of the Reform and Opening-up Policy in China Chenqian Yu(Nina) IE204 Academic Writing III Eassy 2 03/10 The Effects of the Reform and Opening-up Policy in China China has gone through a rapid economic growth over the past three decades since the previous premier Deng Xiaoping who was a pioneer of “Socialism with Chinese characteristics” decided to reform and open to the outside world in around 1980. This is the turning-point of China’s economy and also the symbol of China entering a new era. Before this policy came out, China was a poor and backward self-sufficiency country like an isolated island in the world. The 30 years’ reform and opening-up has shifted China to an open market for the world and raised people’s living standards; meanwhile, it also caused the imbalances in China’s economy. One of the effects of this policy is that it transformed China from a self-contained economy into an open-market economy. Nowadays, the economic activities which take place in China are much more than before, so more and more multinational enterprises are coming to China, such as Adidas, Coca Cola, and Starbucks. In the meantime, according to Charles(2014), Chinese domestic companies increasingly began to invest across national borders and privatization has been more wide-spread. Before the policy was put forward, China is an autarkic country where people were not able to have multiple choices on products in the market. However, now international...
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...PLACE OF PUB: New York, NY II. AUTHOR’S THESIS: China is reshaping the global economy and becoming more of a challenge to the West, but if it cannot advance culturally and institutionally, it will not replace the US. III. HISTORICAL BACKGROUND: The book covers an extremely broad period of history when it discusses the rule of China. Before Jacques mentions China’s current global status, he goes over China’s past global situations, mentioning the major rulings of the Xuanzong, the Tang, the Song, the Yuan and the Ming Periods. During the Xuanzong period (712-756), China lead the time period called the “Rise of the East” and took center stage in the Global Economy. During the Tang Period (618-907), China was economically successful and politically dominant. Foreign trade was fully established by that point and territory expansion had gone to dramatic rates. The Song period (960-1279) included the most remarkable economic transformation for commercial, technological and urban economies. At this point, China had let go of some of its militarism and political domination. Shortly after, however, the Yuan era (1271-1368) restored National Unity, political strategy and militarism. Jacques argues that China and the “West” were neck and neck in the race for global economic domination until China completely veered off its track in the 1800s. While Europe and the US introduced industrial economies extremely quickly and underwent massive social and cultural reform, China stood...
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...CHINA’S NEW CONCEPT FOR DEVELOPMENT Jiyao Bi1 INTRODUCTION In the first 20 years of the 21st century China is entering a new development stage to comprehensively build a prosperous society and to accelerate its modernization drive. China views these two decades as a period of great strategic opportunity which should be pursued vigourously. From an international perspective, peace and development remain the central themes of our era, and China is working to achieve this peaceful environment for development. From a domestic perspective, 25 years of economic reform and opening up have laid a solid basis for development, and China has achieved favourable conditions to accelerate development. However, opportunities are always accompanied by challenges. A key challenge for China is to adopt new thinking and ideas for development and make a new breakthrough in reform, so as to tightly grasp and make a full use of this opportunity to further promote its modernization drive. I. CHINA’S DEVELOPMENT TRENDS AND ISSUES China has experienced rapid economic growth since the late 1970s when economic reform and opening policies was initiated. From 1978 to 2004, China’s GDP grew by a yearly average of 9.5 per cent, the highest levels of GDP growth in the world. China has successfully maintained its sustained and rapid economic growth in recent years by improving and strengthening macro-control policies. Confronted with the external shocks of the Asian financial crisis of 1997–1998 and...
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