China 's Effect On The Global Economy

1285 Words Apr 12th, 2016 6 Pages
RaghuRam Prasad
Ms. Wienkes
English 9 Accelerated
7 April 2016
China 's Effect on the Global Economy
Over the last two decades, what was once a developing country has grown into the economic superpower that is China. China passed Japan to become the world’s second-biggest economy in terms of GDP in the second quarter of 2010 and was said to be on track to surpass the United States in 2027, with an annual GDP of $14 trillion (Bloomberg). Since China became a larger and more influential country, it is now important to realize that the global economy depends heavily on China’s actions. Their exports have lowered consumer prices across the board, and their imports have impacted commodity prices. However, in recent times, China’s economy has started slipping. When China released their manufacturing report at the beginning of this year, major indexes across the world went down, including the DOW, which fell 565 points (Peltz). The world had to take a step back and start preparing for a potential recession. Thus, China has a profound effect on the global economy due to the fact that some countries depend on China for their economy, China is a large importer of various industrial commodities, and China manipulates their currency, the Renminbi, to their favor.
When China’s economy slowed down, it set off a rage of panic among different countries, primarily due to the fact that those countries have China as their major, if not their only, trade partner. Take Chile as an example.…
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