China 's Economic Power On A Global Scale

China has long since been recognized in the world for its natural and man-made products such as its silks, satins, and its delectable cuisine. During post classical China, China’s influence was not only spreading across the country, but was spreading across the world. Economically the Chinese ideas and innovations began taking full affect across Eurasia. The Chinese art of producing salt by solar evaporation soon spread to the Islamic people, as they began using the technique for themselves. Other Chinese innovations such as papermaking, printing, and gunpowder all began to spread to other civilizations such as Korea, Vietnam and Europe. With the creation of canals, networks commerce, waterways, and technological achievements, the Grand Canal,

China is currently the 2nd largest economy in the world, trailing the us and set to overtake the us economy by 2024 according to the IMF. GDP of china has grown extensively over the past three decades and have contributed to large scale growth in exports and imports, technological advancements, health, and more. The acceleration of globalisation was due to two major advancements, the first was the economic reforms of 1978 when china ‘opened the country’ and the joining of the WTO in 2001. China is classified as a socialist economy currently being ruled by a communist government. China’s current growth rate for GDP is recorded as being 7.7% in 2013 and has continued to slowdown over recent years due to a global economic slowdown.

Globalization is an important term that is partially responsible for an economic revolution that took place around the world. Theodore Levitt, a former Harvard Business Review editor, coined the term “globalization” and used it for the first time in one of his articles in 1983 (Los Angeles Times magazine, 2006). According to the Business Dictionary, globalization can be defined as “the worldwide movement toward economic, financial, trade, and communications integration” (businessdictonary.com). China can be considered as an excellent example to demonstrate globalization. When Deng Xiaoping was elected as the Communist Party leader, he brought about economic reforms that opened the Chinese economy to the rest of the world and later introduced itself into the World Trade Organization (WTO) in 2001 (bbc.co.uk, 2006). Hence, expanding the growth rate of the Chinese economy, which has been constantly rising over the past decade. As of 2016, China is the second largest economy in the world with a GDP of $12.9 billion USD, and will continue to grow following the trail the United States (money.cnn.com, 2016). The emergence of China and its success as a powerful economy in the world can be partially credited to globalization. The following paper focuses on both the positive and negative ways in which China has been affected by globalization and its outcome that has placed China to where it is today.

In the past decade, China has proven their potential to be peaceful in their rise to power. The United States was acknowledged as one of the leading world powers in the late 19th century, following the Cold War. This power came to be as a result of significant domestic industrialization and widespread international influence. However, China’s case is a bit more complex. It’s rise to power was marked by the Communist Party’s completion of its sixth 5 year plan in 1982. Despite the country’s rapid development, much corruption and violence had occurred in its beginning years. Still, China will likely not repeat the same mistakes and will avoid international conflict in its advancement. This can be predicted by examining the country’s current economic growth, stable relationships with trading partners, and their keen focus on keeping citizens satisfied with the government.

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.

United States is the 2nd leading exporting country in the world of goods and services while it is the country that imports the most. The United States consistently imports more than it exports, primarily due to it depending on oil imports to meet its demand for consumer goods outside of U.S. and to meet its energy requirements. The United States recorded a $702 billion in deficit from just petroleum products in 2013. Meanwhile, the United States only had $231 billion in surplus from service trade. Few of the main trading partners of the United States are China, Mexico, Japan, and Canada. While Canada is the main country to which United States exports to, where as China is the main import source. In 2013, the trade deficit that was hit with China hit a new high at $318 billion.

China has always been a country talked about whether it’s because of trade that the U.S. and other countries are involved in or how much they have grown as a country. You usually hear a story in the news about their growing power. China has become one of the top countries in the world ranked as #2 right behind the United States with a GDP of $10.4 trillion U.S. dollars as of 2014 and continues to rise. China has transformed itself to a manufacturing and exporting hub since they were a centrally closed economy in the 70’s and has grown over 7% in the past couple of years while continuing to grow. What makes China’s economy powerful? As you continue to read this research paper you’ll understand why and how China has grown with their economic, military, and political power.

Other countries are also facing the issue of trade deficit with U.S. like India, Japan, and UK and the basic reasons include outsourcing, free trade and currency manipulation (Davies & Thurlow, 2010). In relation to U.S. Johnson (2015) identified that since Korea Free Trade Agreement, trade deficit of U.S. with Korea has increased by 80% and more than 70,000 U.S. jobs have been lost. Moreover, in 2014 trade deficit with China raised by $ 23.9 billion to $ 342.6 billion as U.S. made $2.3 billion to $ 124.0 billion exports to China, whereas the imports were increased by $26.2 billion to $ 466.7 billion. Plamer (2012) stated that one of the reasons of high level of U.S. trade deficit with China is the actions by Beijing to manipulate currency and displacement of more and more jobs from U.S. to China. For instance, it has succeeded to eliminate about 2.7 million U.S. jobs during 2001 and 2011.

Continual economic growth for the past 30 years has allowed China to rise as an economic power. As the Chinese manufacturing industry continued to grow many of the people moved from rural areas into urban centers. The continued economic growth has taken China from a poor country to the 2nd largest economy in the world. Using many of the principals of capitalism China has overcome obscurity and increased exports to the point of drawing a large trade surplus with Europe and the United States. The growing wealth of China has drawn much criticism form the global leaders as trade deficits rise. China has continued on policies of currency fixing and implementation of subsidies that are consistently controversial with the

China becomes the second largest economy in this world and it has showed the remarkable economic performance over the last two decades after The United States. China’s gross domestic product (GDP) as Share of World GDP at PPP 25 years ago only reached around 4.7%, now China contributes 16.32% of world GDP. China exports the relative cheap products that lowered consumer prices across the globe, and its imports have had a major impact on global commodity prices. China also has become a major hub of interindustry trade. Regarding those facts, China may become the engine of the world economy.

However, the U.S has service trade surplus with China (ustr). But the huge deficit in goods makes its services surplus unnoticed. For instance, in 2016, the good trade deficit with China was “$347.0 billion” whereas the service trade surplus was $37.4 billion (ustr). China is the third leading importer of U.S goods and services. Over the years, U.S is increasingly offering its services to China. China also demands high finished products from the U.S. Other goods that U.S exports to China are agricultural products. China is the second largest importer of U.S agrarian products (ustr). Hence, the Chinese market is vital for U.S agricultural goods producers.

China’s economic growth is expanding at a great pace, while other countries may be at a standstill. China has been the world 's fastest-growing economy. One of the main stimuli twelve years ago was the release of Hong Kong to China from Great Britain. The second largest stimulus was the opening of free trade with other countries, in which China was originally a closed trade country. Foreign trade and investment have played a crucial role in the growth of the

China is a globally renown manufacturing and production source. They possess the largest manufacturing economy worldwide and they also boast of being the largest recognized exporters. The consumer market also plays a key role in sustaining the economic growth. China has a population of 1.411 billion which serves as a big market for their products (United Nations,

"Napoleon said of China "Let China sleep, for when she wakes, she will shake the world." This assumption turned out to be true, particularly these two last decades. As a matter of fact, China has undergone two restructuring processes: the industrialization and the transition from a centrally planned to a market economy since the early 1980 's. Thus, Chinese government has been implementing an economic reform to reinforce its rapid growth. China is now awake and is already a major actor of the world economy, widely open to the world. It has reduced its trade barriers and has managed to attract huge foreign direct investments thanks to which China could improve its

China has seen unprecedented economics expansion through the last decade. This has helped the country build important infrastructure such as roads, ports and airport that are vital to importation. Furthermore, the accession of China to the WTO in 2001 can be seen as door to china has opened to the world. This has resulted in the adoption of unilateral trade regulation of the 90s. As a result, China trade and investment regulation is more transparent and predictable; overall, access to China has been facilitated ever since. This has made the country number one exporter to the US and as according to the ONS release of January 2014, China is second exporter to the UK. This shows that China has potential for foreign investment. However, China still remains a communist country with heavy restriction in area such as that of the Internet and communication and its labour law is still heavily criticise.