Why and How Has China Emerged as One of World’s Largest Economic Powers

Abstract In this essay, is aim to explore the China became a powerful country in economic in the world recent years. An admitted fact that China influence of world economic becomes great and trend increase. As everyone knows China is a developing country compare with another East Asia country Japan the economic powers are both strong in the world but China was growing in recent 30 years, surprising how quick they controlled economic growth and sustained growth. Following factors effect Chinese economy and leads China economy getting on the track and it is only the beginning.

Firstly, In China resources are variety they have the richest market of labor, plenty of foreign exchange reserve and high saving rate support China continuous economic growth. Secondly, China is a vast potential market for both Chinese domestic economy and overseas. China still has a great space supply for market develop. Foreign Direct Investment would like to enter and invest in this profit attractive market because market have unlimited chance to expansion that relate to high profit and it affect scale of economy in China.

Moreover, Government policy and socialist system help China fuel economic growth, especially in recent 30 years. The policies which well known in the world such as, ‘reform and opening-up’, ‘one country, two system’ and ‘special economic zone’. These create a great power of leading china’s economic increase but every policy bases on Chinese government’s power control. Besides the reform Chinese government play an importance role of leadership in China’s economic developing period, Chinese government interface marketing running which a lot different compare with western country’s economic system.

We can say that economic policies implement should under Chinese government’s authority control and they are rely on government and society structure which is aimed at the actual condition of China. Finally, Favorable International environment provide a stable economic circumstances and stimulus China’s economic growth. Also, globalization enter onto the world economic stage and play a large role in external environment, many and many economic organization like WTO, APEC and ASEAN leads integration of region economy.

These affect China’s economic, reflect and emergence China’s economic power in the world. In conclusion, China has emerged as one of world’s largest economic power and China’s rapid economic develop depends on a variety factors both from internal and external, China has successful reform the world economic market segments and even more effort. Content Abstract2 Content4 Introduction5 Body5 Conclusion9 References10 Introduction The analyzed of latest world economic and statistics data show that China’s economic growth is still above the level of previous years.

GDP continuous growth even under suffer of economic crisis and in this emergency condition beginning of showing China’s economic power and affect world’s economy. People cannot image that China’s economic growth so rapidly previous 30 years. It is a miracle in the world economic history and now makes it own performance and productivity for every moment. World need to revisit China’s position on economic. The booming of China’s economic is inevitable, behind the successful it depends on many factors. I am going to list four chief factors of help and stimulus China’s economy development.

First, China has variety of resources and then large market with large potential profit. Also policy and government type, furthermore external economic circumstance. All these deeply and widely influence China’s economy attain today’s result. Evaluate the method of China attend economic incase because China is good at analyze it comparative advantage and able to use those strategy correctly. In brief, doing the right thing at right time and fully utilize advantages of itself therefore China catch the opportunities and follow it. Body Firstly, China own abundant funds and resources in domestic market.

China is well known as a big power with richest labor force, abundant raw material and vast land area. People call China as the World Factory because many develop country invests business and using China’s labor forces. McCall says that (2008) China ‘now produces about half of the world’s shoes and a proliferating array of electronic items, toys, and garments for the global economy’. China has the cheapest human resources in the world, helps reduce the costs of input invest and production. McMichael says ‘has become perhaps the prime location for low-wage production in the global economy’. With 1.

2 billion ‘‘educated but impressively cheap (25 cents an hour as compared with $1. 50 in Mexico) and well-regimented’’ workers. China using this advantage develops country’s infrastructure and industry upgrading with a lower cost compare with other countries. This urbanized country, move country close to city. In condition, China has solve the employment issue while make full use of cheap labors. On the other hand, rich labor resources together with huge consumer market. Economic market cannot live without consumer, China have a large volume market it is the most powerful advantage than everything.

Also, In China people would to save nearly 50 percent of their income into bank, in this way China have enough monetary reserve force to defend and provide a protection of economic recession. Furthermore China has a plenty of foreign exchange reserves. High saving rate leads high savings and investment supporting the rapid economic growth in China. High saving deposits furnishes adequate capital resources which ensure the flexible mobility and ready availability of capital and thus by extension, guarantees the stability of the banking industry.

Furthermore, high savings could supply high investment in turn, which is a major contributing factor to the economic growth of a nation (Makin, 2006; Carroll et al. , 2000). When the accumulation of capital is comparatively sufficient is a great competitive advantage of China. It truth that China has plenty of labor and saving reserves support whole country’s change and economic growth, without enough money support economy market will never be able to expand and make benefit to market.

Secondly, China and world are going to move the view of market and target on China’s market recent years and still trend to be increase. That means China’s wide potential market is clearly attracted overseas companies position their part of market in China and target on China’s vast market and potential market. Because China develop in recent 30years and market are not completely and deeply explored by China’s domestic enterprises and transnational corporation willing to come to China to promote , awareness their product and concept of organization.

Through this way a company can impression the image in Chinese market and consumer which is good because people is open mind and trying to accept a number of new information of a company and their product, if is successful they can be format by these new enter originations and have chance expand the size of target market and compete with competitor to get the potential market. The good of enter a new market is mature and consumer is not setting a pattern and establish their consume concept. At that time it is a good chance which company can take the chance to attract customer, even come into being long-term customer.

Lean, H,H & Song, Y, Z(2009) saysthat China’s rapid economic growth is too dependent on external demand. The external demand is the engine of a company for Chinese company they are aiming to develop and keep their existing target market but for transactional corporate it is explore and expand their current market size, which their own country’s market size approach limited and stable when they are looking for more profit China is a perfect target to concentrate on. When China open trading market, market potential space and quite low expense of running a business in China become a outstanding character to attract foreign company.

Not only that but also Zou,P,X,W & Wong,A (2008)find that a joint venture is a business structure where a foreign firm goes into business with a local Chinese partner (China-Britain Business Council, 2006). The primary objective for foreign companies to invest in China via a joint venture is to overcome potential trade barriers in penetrating China’s market. All those factors drive China market face world and learn foreign enterprise’s management style and technology also using Chinese labor resources absolute serve multiple purposes. Furthermore, policy and interface by Chinese power type.

These policies help China develop regional economic and after that naturally emerge a economic zone surround the first region which implement the policy first, many years after this region will lead and effect surrounding region’s economic develop. Chinese economic development policy can hardly implement without the assist of Chinese government authority. China is under the socialist market economy which compare to western capitalism country is control by government. In such circumstances Chinese government forcing on perform their authorities to local government accept policy in their region seek the advancement of local economic develop.

Under the autocratic management style, government interface economic and executing policy. Below are the three famous policy and using in China many years, ‘Design the district economy policy’, for example, Shenzhen, Zhuhai and Shanghai-Pudong special economic zone, also ‘develop east coast city first’ now China has been implement ‘western area development’ base on the central city Lanzhou. China is a wide area country they cannot make every region economic develop balanced so they start to concentrate on some distinction located at good investment destination such as port city.

This policy planned every 10 years and has achieved it goals, now in China these region is develop than other regions and people’s living standing high than others. McCall (2008) says that, Shenzhen, near Hong Kong ‘has a booming economy and accounts for half of China’s GDP. ’ In addition, ‘One country, two system’ special zone government firstly is designed for Hong Kong, since 1997 the United Kingdom hands sovereignty over Hong Kong to China, China is going to cooperate with Hong Kong capitalist system and implement it until today has been through 13years and never cause negative effect in Hong Kong’s economic.

As well, Chinese government realized economic is the foundation of a country then reform and opening up to trade make China powerful. By improve the economic environment China stopped self-enclose market. Since the reform, China opening up to outside world and looking for business trading cooperate. This policy has played a important role in increasing foreign investment and leads China’s economy back on track finally drive China’s economic growth rapidly and stable in long term.

Last, stable international environment provide China a favorable chance to develop socialist modernization. Peaceful international environment generate harmony relationship between countries in the world. Globalization comes to everyone’s daily life. The business under stable and modern background increases the connection between many countries. This fact globalization led resources share and balance, for China attract foreign investment and provide opportunities in more areas. It helps allocate the finite resources and reduce the different and barriers between East and West Country.

Participative into the economic globalization scale the China’s international trade expanded and became the second largest in the world. Through the connection, effectively promote domestic economic strategy such as upgrade the domestic economic reform, increase the comprehensive national strength. Move over, globalization leads and form world and regional economic organization and council. The more typical and representative economic organization’s example are WTO (World Trade Organization), and a regional economic organization is ASEAN(the Association of Southeast Asian Nations).

China joins World Trade Organisation (WTO) in 2002 and China trying to reform their economic structure and create a significant performance of economic growth that reflects on GDP and living standard. Zou,P,X,W & Wong,A (2008)climate that the immediate impact of China’s accession into the WTO will be progressive reduction in its high import and investment barriers; stimulating a growing interest in projects. More and more enterprises facing the same market, environment and competition also challenges, it is getting harder for competitiveness organization stay in world market.

The standard level of China in WTO is getting important and trend to growth frequent with quite low fluctuation that show on GDP growth of China even during economic crisis it still keep increase and compare to other country such as western develop country it is inconceivable. The external market provide China a large demand market and support China’s export, facing the world market China has expansion the 20 percentage previous 30 years. Seems nothing can defense China’s developing because China and World both are rely on each other and growing, getting strong together.

Conclusion In general, China’s economic power becoming the second large in the world cannot leave without both internal and external factors. That China’s internal advantages of resources build a solid base for China developing economic, a stability foundation support China not afraid to face world economic flow. And government according to China’s actual condition control the authority, it is very important for China because of socialism they are centralized state, high concentration of power enforce implement policy and people cannot against help China develop directly.

For external factor, demand of foreign market market and resources as well as China need of foreign investment. So the foreign market and Chinese market are interrelated and interacted with each other. In addition, external economic environment are unpredictable and change variable for this China is take action adopt to the international trend but could not infringing it self’s interest. In a short word China is going to learn from other’s strong points and close the weaknesses and fully play advantages and improve and looking forward great progress in future.

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