Can China Continue For Grow? China

These effective strategies helped Hong Kong overcome the financial crisis. All these facts fully demonstrated that China is a responsible big country. After the Asia financial crisis, the importance of China's economy has been brought into focus; China's neighboring countries have begun to recognize the influence of the Renminbi.

Similar to any other commodity commodities, demand for oil plays a very strong role in determining its price. Currently the continents that consume the most oil are Asia followed closely by North America. In 2008 Asia first passed North America in oil consumption due primarily to the developing economies of China and India and by 2010 the Asian continent was consuming around 25 million barrels of oil per day. This is primarily because these economies have historically been manufacturing based economies with extremely large populations, which require large amounts of oil to keep running. China is the world’s largest manufacturer and purchaser of cars, and thus is the largest importer of oil in the world. Although China is one of

China’s last dynasty ended one hundred years ago, and the last great dynasty ended one thousand years ago. (Dharmananda)Nonetheless, China is rising out of the ashes in modern times. China became a communist nation in nineteen hundred and forty nine. (Woods, 2009) With the help of the U.S.S.R., China made multiple nuclear weapons in the nineteen fifties. This sparked the start of China’s military modernization and their reemergence to the international community. China’s international policy is to promote world peace. They hope to do so by staying neutral and only defending their interests, and not instigating. The only contradiction in China’s policy is that it interferes with Tibet and Taiwan. If Taiwan ever tries declaring

In the National People’s Congress press conference in March 2007, China’s Premier Wen Jiabao argues the biggest problem with China’s economy is that its economic growth is unstable, unbalanced, uncoordinated, and unsustainable. Since export and investment play unsustainable roles in increasing China’s real GDP, this study tries to testify how consumption enhances the sustainability of China’s real GDP in the short run over a long period of time. As Krugman (1994) suggests, increase in the economic growth rate in the steady state can only be attained by the technological progress. However, it is also true that the increase in consumption will increase the real GDP in the short run. Based on the fact that the current ratio of consumption over output in China is much smaller than that of other countries, such as Japan and the United States, a higher ratio will increase China’s real GDP in the short run. Since it takes several years for China to change its economic structure toward consumption, the accumulation of each larger real GDP in the short run will result in a much larger real GDP in the long run. In other words, the increase in consumption will increase China’s economic growth rate indirectly. Therefore, this study uses a macroeconmetric model of Chinese economy to quantify what China’s real GDP would be in a series of increases in the ratio of consumption over output, spread over a long period of time and predicts what China’s real GDP level will be in the future

The monetary policies of USA and China is analyzed here from the perspective of their implementing bodies, their choice of instruments, and their means of setting their interest rates. The analysis reveals that there are immense differences between the two countries resulting from the nature and degree of influence from their respective domestic political systems. The paper

In 2005, Zhou Xiaochuan, the Central Bank Government of China who has been in power for the past 13 years, announced that the Renminbi would switch exchange rate regimes and would begin to follow a more flexible regime that was tied to a basket of different currencies. Prior to this new change, the Chinese yuan was strictly pegged to the US dollar, which helped them thrive economically in the global market. Less than a decade before the exchange rate regime was changed, the Asian financial crisis occurred and many East Asian countries were impacted. Compared to its neighboring countries, China was not impacted as badly as other countries, therefore it continued to stay afloat during this difficult period of time and continued after the

Most commentators believe that the decision by the People’s Bank of China (PBoC) to allow the yuan to weaken reflects rising concern about the state of the real economy. Economic growth has clearly decelerated, but rebalancing the dynamics driving real GDP was never going to be a predictable process, particularly given that the government has tried to prevent the destruction of capital that is invariably required during such transformations. China has never totally turned her back on fixed investment being a significant source of economic growth. This stance has introduced excess capacity into the economy, funded by a multitude of debt instruments since 2008. Higher investment spending was seen as the best way to shore up the economy during the global financial crisis. Utilisation of newly built capacity was expected to rise once demand conditions returned to normal. The problem is that global aggregate demand growth never returned to pre-crisis levels, consequently rendering many projects economically and financially unviable. This did

China began to reform its market in the early 1980s, with the shifting of a centrally planned economy to a market-based economy, China has experienced soaring economic growth and social development. In the meanwhile, the environmental degradation is getting worse. Yet, the environmental protection law enacted by the Chinese government barely have an effect. Economists and scientists have both pointed out that, if the Chinese government does not take timely and effective measures to reverse the current environmental degradation, such pollution problems will greatly hinder the future economic development in China, and the living standard of Chinese citizens

In 2005, Zhou Xiaochuan, the Central Bank Government of China who has been in power for the past 13 years, announced that the Renminbi would switch exchange rate regimes and would begin to follow a more flexible regime that was tied to a basket of different currencies. Prior to this new change, the Chinese yuan was strictly pegged to the US dollar which helped them thrive economically in the global market. Less than a decade before the exchange rate regime was changed, the Asian financial crisis occurred and many East Asian countries were impacted. Compared to its neighboring countries, China was not impacted as badly as other countries, therefore it continued to stay afloat during this difficult period of time and continued

China is the largest economy in the world in Purchasing Power Parity terms. It is seen as the dominant economic force leading the economies of the rest of world. In the last monetary policy statement, Federal Reserve took a U-turn from increasing the policy rate by keeping it unchanged in fear of the consequences that would lead to through the economic slowdown in China. Many analysts also reported

Secondly, the fixed dollar-pegged exchange rate system and monetary policy, the independence of the existence of a fundamental conflict, undermine the effectiveness of monetary policy cannot meet the needs of economic development. Monetary policy autonomy is essential for China’s macroeconomic stability; monetary policy should take precedence over the independence of significant exchange rate stability. But the Yuan against the U.S. dollar exchange

China, one of the large emerging markets, with the implementation of its “reform and opening up policy” made in 1978. China has successfully transformed itself from an inflexible centrally-planned economy to an open and market-oriented economy, and accomplished remarkable progress in trade market. China has maintained high and stable growth rates for over two decades. Since China is becoming an increasingly important member in the world’s economic scene, the movements of the foreign exchange rate could be an important issue for Chinese firms. On 19 of June 2010, China’s central bank declared that it will further implement the reform of foreign exchange and enhance the flexibility of RMB exchange rate (Money for life

In recent years, China’s balance of payments always keeps “double favorable balance”. In 2005, China’s national economy developed quickly and stably. The exchange rat of RMB became more flexible. The current account surplus increased obviously and the capital account surplus decreased. The foreign exchange reserve still increased quickly. In 2005, Chinese government did some fiscal policy and monetary policy. Such as decreased government expense, raise the tax rate, used managed floating system, improve the foreign exchange management, enlarged the foreign exchange market. We can conclude that china’s BOP will still keep “double favorable balance” and keep

in the business forefront owing to its lack of management reform and its inability to

With China's deepening Opening Up and economic restructure adjustment and the continuous appreciation of RMB in recent years, the