Chinese Economy in 2025

The purpose of this research report is to provide an overview of China’s economic growth in relation to the long term economic growth drivers. Critical assessment will be made on the growth drivers to determine whether they lead to long term economic growth.

Since the reform and opening up, the economy of China grows significantly, as an emerging economy, China's economy has made tremendous contributions to the global economy, and Renminbi has become one of the most important currency in the world. According to the survey conducted by China National Bureau of Statistics found that from 1979 to 2012, China has attained an annual average growth rate of 9.8% for its national economy, while the annual average growth of the world economy is only 2.8 % during the same period. In past 30 years, China's GDP surpassed Japan’s, China became the world 's second largest economy, in addition, the huge total volume of trade makes China become the world 's largest trading nation. The contribution of China’s

Nowadays, China has become the second largest economy in the world. The GDP (gross domestic product) of china was growing at 9.7% per year in average since 1978, which the year of Chinese “open door” politic founded. China also has become the biggest producer and consumer in many key agricultural and industrial markets and the largest FDI recipient among the developing countries. The performance of china in developing of economy is called “china’s economic miracle”, which be studied by many economists. However, there are also bad results with the development of economy in china such as environment disruption, corruption and

China has reached a milestone in terms of achieving its centenarian goal of making China a prosperous nation once again. One of the ways that it has done this is by having steady economic growth even in the midst of an economic crisis. Not only has China’s economy grown, but its standard of living has also improved, it has achieved this by spending 70 percent of its fiscal revenue towards improving people’s standard of living. China has also pushed more anti-corruption reforms and has made efforts towards widening its economy by setting up freer trade.

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

Although the total size of China’s economy has grown at an astonishing pace, being the second largest economy in the world by now, its real GDP per capita does not tell the same story. China is still quite far behind most developed countries by this measure. The other problem facing both countries now is growing income

Over the last few decades while China’s population growth rate has decreased, its GDP has increased. “China’s GDP per capita for the period 1952 to 2008 grew at an average annual rate of 5.58%.” (Yao) Furthermore, during the same time

“China is confident and capable of maintaining a reasonable growth rate thanks to its economic structural reforms and emerging new sources of growth” –

Ever since the initiations market reforms in 1978, China has over time turned from the common central-planned economy to market based economy contributing to it experiencing rapid economic as well as social development. China’s GDP growth index averaging close to ten percent annually has promoted 500 million and above people out of abject poverty. Recent reports suggests that China has realized almost all of its Millennium Development Goals or at within realization. The state’s population has hit 1.3 billion making it the second biggest economy and is progressively playing a significant and prominent role in the world’s economy. A keen interest into China’s economy along with the political impacts on its economy will be the focus of this paper.

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

Needless to say, the rapid growth China has exhibited could not last forever. Over the past 5 years, growth in the nation has slowed to 7%. To put this in perspective, the U.S. grew 3.7% in Q2 of 2015 while the IMF projects global growth at 3.1% over the course of 2015. Even with slower growth than prior years, China’s growth still outpaces a majority of countries including advanced economies.

Since initiating market reforms in 1978, China has experienced enormous and rapid economic growth, become one of the world’s largest economies. The seeds of this rapid economic growth were planted in 1978 when the Chinese Communist Party started to introduce capitalist market principles. This was done by moving from a centrally planned to a market based economy. The shift away from traditional Marxist policy created a scarcely concealed capitalist culture in China masked by a communist facade. One can argue that with wealth comes a much higher level of education. The economic development in China has created a society that is better educated and paid. Citizens are developing much more politicized views and are more actively expressing their opinions. If the economic inequality caused by their current specialized private sector continues to grow, the citizens, now increasingly aware of their rights, will be less likely to accept the domination of the state. Finally, due to the internet, the nationalism that has historically helped Communism to remain the dominant ideology in China is decreasing. Younger generations are experiencing a culture shift that favours a more democratic lifestyle. Globalization and the growing entry into foreign markets will create pressure for China to abandon their communist political self-identity, transitioning instead towards democracy.

According to World Bank (2010), China’s gross domestic production (GDP) reached as much as $5,930,529,470,799 in 2010, when for the first time China ranked the second in the world following the United States and surpassed Japan, and has been maintain the ranking in the following years with larger gap outperforming Japan. Moreover, the annual growth rate of China’s GDP has averaged over 9 percent in the last 3 decades (World Bank, 2010), with no other country having achieved such rapid developmental success as China in the world (Turin, 2010). As the country with the largest population in the world, China has lifted 300 million of its citizen out of poverty (Ramo, 2004), attributed to 67% of the total reduction of global poverty during the last 25 years” (People’s Daily, 2008; Turin, 2010), and people living at less than $1 a day has sharply declined to 13.4% in 2003 and further to 8% in 2009 from 60% in 1980 (Sahoo, Dash & Nataraj, 2010). China’s dramatic rapid economic growth has been a miracle of in the world. Reflecting the notion that as one of the most significant emerging economies, the world centre may be shifted to China, thus a couple of research studies have turned their attention from western advanced economies’ to China, trying to find out a model that can perfectly explain such growth, Some scholars contribute China’s success to the incentives of Asian Flying Geese Model. Hemphill & White (2013) claim

The rapid rise of China is considered as one of the greatest financial achievement, domestically China achieved a major change by raising 500 million of its people out of extreme poverty and we can say that China attained a major economic power within the span of three decades. It became the world’s largest holder of foreign exchange reserves, manufacturer, and the largest merchandise exporter. China’s remarkable economic growth for the last two decades can even go beyond the United States’ size of gross domestic product (GDP) as well as inflict significant political influence in East Asia. Furthermore, China hold the largest and strongest armed forces arsenal with an astounding excellence in its armed forces capabilities to become the

Felipe et al (2013) estimated that it was unlikely for China to continue registering high growth rate any longer since its past thirty years’ development has created wonders but also inefficiencies and imbalances. We have witnessed China’s inevitable deceleration in recent years with annual GDP growth rate declining for five years in a row, which fell to 7.35% in 2014. According to several growth projections, China’s average annual growth rate