China 's Consumption And Its Consumption

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.

Over the past ten years China’s financial flows have fluctuated a fair bit, with down turns and upturns throughout. With an obvious trough when the GFC hit. Although as soon as the GFC finished China’s financial flows bounce straight back up and boomed. As of recent China’s financial flows have been in a deficit and is now looking to be bouncing back up into the positive numbers. (Refer to Figure C)

This allowed the advent of privatized and foreign companies to compete with the state-run enterprises. China weathered the 2008 economic crisis pretty well; however, the policies implemented during the crisis to foster economic growth worsened the country’s macroeconomic disparities, which is one leading cause of the Chinese stock market plunge earlier this year (2015.) In order to tackle these imbalances, the new administration of President Xi Jinping and Premier Li Keqiang recently began to reveal economic measures aimed at promoting a more balanced economic model at the expense of the once-sacred rapid economic growth. This follows the logic of Keynes’ “stabilization policy”: reigning in excessively strong expansions to prevent their unwanted repercussions. The agenda of China’s top authorities also embrace daring reforms on interest rate and monetary policy management in order to adopt a more market-driven

Any political changes in a nation result in a decline of investor confidence resulting in the withdrawal of investments in the nation leading to economic recession. The article notes that only time will tell the ability of China’s president to implement the Deng Xiaoping economic-reform strategy. In a demonstration of hyperbole, the authors note that the future economic growth of China represents a “$42 trillion question”, which represents the difference in the GDP gains in 2033 if the nations continue to observe progressive economic growth, in comparison to the projected growth during the next 20 years considering the world’s average (WSJ). There is an increased struggle to attain the balance in regard to the middle income-gap trap.
There are warnings from different economies that have predicted a

The fastest growing sectors of China’s economy are healthcare, technology, education, and entertainment. This is attributed to urban households spending 40% of their consumption on these services including travel an

Furthermore, monetary conditions in China have changed as a result in Chinese’s GDP growth. The Chinese Central bank has reduced its reserve requirements and the

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

Since the fall of the Soviet Union Americans have had the luxury of living in a country with no foreign rival. When we do look to see who could be a potential existential threat, the answer is almost always China. China 's economy is growing rapidly, its military is expanding, and its diplomatic influence has spread to every continent. However, despite its impressive rise in the last fifteen years, China remains decades away from competing with the US on any level.

In the past China was not to able sustain its own economic well being, let alone be an economic super power. The standard of living in China was so low, that something as simple as a light bulb was a luxury (Fogel, 2006). After the Cultural Revolution and Communism set in, China’s economic luck started to change. Between the years 1978 and 1998, a mere twenty years, China’s Gross Domestic Product (GDP) has grown an average of eight percent annually. The eight percent annual GDP growth has made China one of the fastest growing economies in the world (Fogel 2006).

An efficient economy is an economy where resources are allocated to serve every citizen in the best way so that there will be minimal waste and inefficiency within the economy. China is the short name for the country, but the real name is People’s Republic of China. China happens to be one of the economies that falls under an efficient economy because it has continued to improve other the past decades. “Over the past five years, economic freedom in China has improved by less than 1.0 point, continuing its patchy and uneven progress since 1995” (heritage.org). Although China has had some rough stages in economy efficiency, they have continued to strive and make it on top. China is one of the most thriving countries in the world today, but it is still classified as a developing country. The population has reached over 1.364 billion and contributes to the 19.06 trillion dollars in exports along with the 19.01 trillion dollars in imports. China has obtained over fifty different commercial banks in their growth to the present, but there are twenty-nine different banks present in their economy. The currency used is the Chinese Yuan and one U.S. dollar equals 6.4 Yuan’s.

China in the 1980s was characterized by the economic reforms of Deng Xiaoping. After the death of Mao Zedong, the new supreme leader of China launched his “reform and opening” program that drastically overhauled China’s financial sector. China wanted access to world markets for trade, investment, and technology. For this to happen, China needed to demonstrate to the world its

Concerning the high Chinese savings rate, several analysts hold the financial sector accountable, noting that the underdeveloped financial system has restricted access to external finance - forcing Chinese firms to internally fund any fixed asset investment with their own retained earnings. However, this is not the only factor attributed; according to Juann Hung and Rong Qian, undervaluation of the yuan also propped up the savings rate by making foreign products relatively more expensive and thereby thwarting import consumption (Hung and Qian, 2010). Despite these theories being the subject of much interest, it is the effect of the savings rate which is most important; China’s rising savings rate meant that a key symptom of its economic expansion during the early twentieth century was a significant rise in its quantity of savings. This, in the eyes of leading economists, prompted a situation where excessive savings were pursuing a limited number of

China and India are each youth-oriented promoting environments that have incontestable trends toward Western-style consumption over the last decade. It’s necessary to look at widespread merchandise that interest youth markets and target the small and macro-environmental forces which will influence the promoting ways for these products. That may permit the event of suggestions for marketers in these economies and, therefore, the identification of opportunities for U.S. corporations to focus on these teams.

China’s Gross Domestic Product (GDP) has seen positive growth every year since 1976, when their growth was -1.6%. In 2015, China’s GDP grew by 6.9% and so far, each quarter in 2016 has seen 6.7% growth. These numbers are actually China’s worst growth rates since 1990, when GDP only rose by 3.8%. China has actually held the position of the world’s second largest economy since 2009, right behind the United States. With China boasting the largest population in the world — 1.357 billion as of 2013 — the market holds a lot of opportunity for the fast food industry. In particular, meat consumption is at an all time high. China is growing increasingly dependent on imports in order to keep up with the demand. This generates the perfect opportunity for fast food chains to enter the market and feed the growing masses.

China’s unique consumer culture can be traced back to the turn of the twentieth century when it was closely related to and acted as an aid to nationalism. According to Gerth, Chinese consumption trends in the 1920s were directed by the slogan ‘Chinese should consume China made products’ (4). The motive behind this trend was to encourage the consumption of Chinese products, and nationalism was used to foster this belief and trend (Gerth 4). Consumption at this early age can be assumed to having been directed by the government, which used to regulate the goods which were consumed by its citizens.