Chin The World 's Fastest Growing Major Economy

Globalization is a process that refers to the increased integration between different countries and economies as well as the increased impact of international influences on all aspects of life and economic activity. Over the last 50 years, globalization has had a tremendous impact on the Chinese economy. The impacts brought forth by globalization can be both positive and negative and effect both economic performance, economic growth and the development of China’s economy. Globalization is the main factor responsible for China’s significant growth that has taken place over the last two decades. However, globalization itself is not entirely responsible. The Chinese economy has also implemented strategies which have been very effective in promoting economic growth and development. These strategies include the implantation of“Open door policy”, “Reformation” of China’s agricultural system and joining the World Trade Organisation.

China had a GDP per capita level similar to Zambia, less than half of the Asian average and was lower than two-thirds of the African average at the outset of the reforms in 1978 (Eckart, 2016). China was poor. Since then, China has grown exponentially experiencing nearly 10% GDP grown per year until 2014 raising GDP from 155 current US Dollars in 1978 to 7,590 US Dollars in 2014 (Eckart, 2016). China, who accounts for 18% of the world’s population, was able to lift 800 million people out of poverty and growth in the middle class. This document will examine China’s financial and currency markets.

In 2014, what had been predicted numerous times throughout the past decade had finally occurred. According to the International Monetary Fund (IMF), China had overtook the United States (US) to become the world’s largest economy, with their Gross Domestic Product (GDP) measured by way of Purchasing Power Parity (PPP), where GDP is adjusted to accommodate the relative prices in each market, was estimated to be at $17.6 trillion compared to $17.4 trillion for the US (Fray 2014). This stood testament to the success of the economic reforms in the wake of the death of Chairman Mao Zedong, led by Deng Xiao Ping beginning in 1978, in revitalising the Chinese economy to the superpower status that it enjoys today (Zhu, Webber & Benson 2010, p. 9). However this measure of China’s economic success is but one side of the coin. According to China’s official poverty standard, poverty fell from 65% to 10% in 1981 to 2004 (World Bank 2009, pp. iii-v) and while this marked reduction is exceptional, the way these statistics are obtained reveals part of the problem. The Chinese government’s official poverty line is one of the lowest in the world and if poverty were to be measured by international standards, in 2005, China would have 254 million people under the US $1.25 poverty line set by the World Bank, the second largest number of poor in the world apart from India, compared to 15 million under official standards. This shows that while China’s tremendous economic growth is undeniable, its

'Made in China' has become the world economy is an important phenomenon, so that China was awarded the 'world factory' in the title. However, we need to recognize that China's current position in what kind of division of labor. China's technology really has made tremendous achievements, but China is in the knowledge economy and information economy, in the international industrial transfer, under and in the inflow of foreign capital to become the world factory, China in the international division of labor, after all, the low-level position and the distribution of benefits relative disadvantage status, is still in the low end of the international industrial chain. At present China has become not so much 'the world's factory' better to say that just be 'the world's workshop', because of China's major commitment to the process, rather than from technical development to the whole process of marketing. In respect of the manufacturing sector as a whole can see that both the proportion of high-end manufacturing products, or are still in developed countries, China is only since the development of a modern knowledge-based economy, can we say truly realize modernization in order to build a modern economy like a power forward. In the long run, China must also be at a high level to participate in international division of labor in order to obtain more benefits. Said that China has become

The economy of China can be difficult to understand and follow; here is an overview on the Nation’s economy. In 1820 China was the largest economy in the world, today it is the second largest. China lifted more people out of poverty than any other country, to where urban areas in China, poverty is eliminated (Project Specialist, Economic Growth and Social Inclusion Initiative, World Economic Forum). China is the world’s manufacturing hub due to the fact that it specializes in labor-intensive and export led production of cheap goods. Many US companies prefer to manufacture in China because the work is fast and cheap. “China is the world’s largest exporter and the second largest importer of merchandise goods” (Project Specialist, Economic Growth and Social Inclusion Initiative, World Economic Forum). By 2030, it is expected that China will once again be the world largest economy.

Over the past three decades in China, it goes without saying that it was miracle that economic growth increased rapidly. For the size of gross domestic product (GDP), China grew by around 10% per year on average, so that it became the second largest economy in the end of 2012, behind the United States. During the last 30 years, the GDP per capita raised from $205 to $6075. One of the most crucial achievement is that China, the largest exporter and the second largest importer, ranked NO.1 in the world for foreign exchange reserves, reaching $3.3 trillion. However, despite the benefits for achievement in China, the problem also cannot be ignored. Because of the rapid population growth, people got great pressure for the cost of

In 2001 China became a member of the World Trade Organization. China’s accession into this organization had many advantages and disadvantages for the country. Some of the advantages of being a member of the WTO for China was the strong increase in GDP growth rate which the country experienced as a result of the facilitation of trade and the increase in imports/exports. Some of the disadvantages of the membership to the WTO were the negative effects in health care, inequalities in income distribution, and inefficient pension funds.

For the past twenty-five years, China has witnessed an overall increase in its domestic growth (Fischler 148). According to the article, “The Rise of China as a Global Power,” by Dr. Rosita Dellios, China “is the world's fourth largest trading nation, rising from 32nd in 1978 to 10th in 1997.” Similarly, China’s GDP is also second to the United States of America, generating 13 percent of the world’s output (Dellios). Since China’s introduction into the World Trade Organization in December 2001, its average tariff dropped from 41 percent in 1992 to 6 percent in 2001, becoming one of the most open economies in the world (Dellios). China is also the world’s fastest developing economy, obtaining an annual growth of 9.5 percent through foreign

China has been transforming into a rapidly growing economy ever since the trade reforms began in 1979 and upon its further entry into the World Trade Organization (WTO) on December 11, 2001 as the 143rd member, China’s trade liberalization and global trade commitments made at that time augmented the expansion in U.S.-China marketable ties (Morrison, 2015). The most significant clause of this WTO enterprise that proved to be beneficial for US was China’s unanimity to

Market environment will affect business’s development and influence their strategy outcomes. In another word, selecting a good market to start-up a new business is a half of success. Focusing on the historical data, we can easily find out that China’s average annual growth for the last three decades were 10%, In 2014 according to the global recession this number dropped to 7.4% (Walker, 2015). Even through China’s economy looks like stumbling but the data still present that Chinese market is better than the U.S. since the U.S. average annual growth for 2014 was 2.4%, which is still far away from the late ninety’s 4% annual growth rate (Mitchell, 2015).

In this case study, we will attempt to answer what measures China took in preparation for acceptance into the WTO and how it adjusted to its eventual admittance in December of 2001. We will also review some of the problems associated with China’s economic growth strategy.

In today’s world, economic power is the prime moving force in determining how much a country can produce, buy, or sell their products or services. One notable economic powerhouse is China. Over the years, the Chinese business climate has grown from a centrally planned economy to a socialist market economic system. Having this new economic system gives foreign investors many market opportunities. However, one must not forget the differences in political and cultural environment that can create risk and uncertainty for foreign investors. According to a 2010 survey by the US-China Business council, companies are reporting strong growth and profitability despite the economic downturn. China has a large market and their purchasing power is ranked second in the world. Although companies are profiting, there are fourteen business issues in China. They are: administrative licensing barriers, competition with PRC state-owned enterprises or national champions, intellectual property rights enforcement, cost increases for labor and raw materials, restrictions on foreign investments, restrictions on market access in services companies, transparency, government procurement standards and conformity assessment, protectionism risks in China, lack of equal treatment from domestic companies, lack of consumer awareness/understanding about products, miscommunications due to language barriers and ethical issues, and the difference in human resource practices. In the United States, managers tend

China is second largest economy in the word. Size of the Chinese economy and future growth potential has attracted the foreign companies to operate and earn profits. Thrust for cost saving and market expansion direct Multinational companies towards China. China has open the door for foreign companies between 1978 and 1990. Mode of entry utilized by multinational firms includes direct export, franchising, joint venture & wholly owned subsidies. The various factors affecting the success of any foreign company in mainland, including but not limited to the time of entry, mode of entry, institutional framework, and culture difference. However, doing business in China is not as easy as doing in developing nations. A lot of companies have burnt their fingers in China operation.

Globalization refers to the development an economy and any forms of governance that span much of the world.It means the integration of markets across the entire world and the increasing tendency for people , corporations and states to operate in or across national boundaries. More foreign enter into China and the employment opportunities will be conduct regardless of the nationality in favor of ability. Mobility of humanresourse.With China's WTO accession, many in the Western world are planning to exploit the vast potential markets and considering the "benefits" that WTO membership will bring such as increased access, new markets and more opportunities to move production facilities. To benefit fully from WTO membership, however, Chinese companies will have to become players on the world, rather than just on the regional stage. Otherwise, the world will compete with China, but China will not benefit fully from entry into Western markets. We have come to realize that China's entry into WTO will bring great risks and challenges as well as the excellent opportunities to the Chinese companies, especially the state-owned companies, which are still in the process of reform. We need to quicken our pace of reform and lay a good foundation to meet these challenges.

China is the most populous country in this world with more than 1.35 billion residents. People’s Republic of China is established in 1949 and its economy started to develop from 1978 onwards. Mr.Deng XiaoPing was the president at that time. He and China government implemented the ‘Reform and Opening-up’ or ‘Chinese Economic Reform’ policy to make the trade freedom with foreign countries. This policy ensures the opening of the country to foreign investments and allows entrepreneurs to start their own businesses. The successful of the policy resulted in the immense changes in China’s society and economy. This ensured the reduction of poverty and balance the income among residents. Nowadays, China is a powerful and the fastest developing country in this competitive world. There are large amount of well-build industries and factories. The low price of the workforces and trade freedom also attract many foreign investors. China is an ideal country to develop a business and there are more opportunities for entrepreneurs. The largest population also prove that there are many customers. In addition, their high affordability and purchasing power give more foreign investors confidents to operate businesses in