China 's Influence On Economy

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In the 21st century, the competition between diverse countries is increasing extremely intense. With the rise of the third world, as the biggest part of it, China’s influence in economy has become a controversial issue due to the prosperity of economy. To be more specific, China became the second-largest economy in 2011(McCurry,J and Kollewe J,2011).And in recent years, according the data in the bar chart below, China GDP’s is growing rapidly and the growth rate is staying between 7% and 8% before 2015. At the same time, because of the development of economic globalization, the relationship between different countries is getting closer and closer, especially in the world trade. Therefore, although China has already slowed down the step to…show more content…
(IECONOMICS, 2015. Source: http://ieconomics.com/china-gdp-annual-growth-rate) It is obvious that devaluation of Yuan will affect the export and import of China. A devaluation of the exchange rate will make exports more competitive and appear cheaper to foreigners. This will increase demand for exports(ECONOMICSHELP, 2015).To be more specific, in world trade, devaluation of Yuan means that more Chinese goods can be bought with the same amount of money. Therefore, the consumers from other countries are willing to buy more Chinese products, and the demand of Chinese goods will rise. Gradually, the exports of China will be increasing. However, another unavoidable issue is that labor-intensive industry still is the main industry in China. It is known to all that China has cheaper labor and low-price raw material, which is the advantage in the trade. Also, due to this situation, a great mount of developed countries set factories in China seeking lower the cost. Hence, in the fact, the exports of China are still not purely owned by China. As a summary of exports, China’s devaluation of Yuan can affect the exports, but will not strong as expect. In the import aspect, it seems more expensive for the consumer in China to buy the goods from other countries. Thus, the demand of imports will definitely decrease. (ECONOMICSHELP, 2015). Overall, devaluation of Yuan will bring benefits to China’s exports and cut down the imports from abroad. With the
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