Economics Assessment Task : The Chinese Economy

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HSC Economics Assessment Task One The Chinese economy is one of the biggest economies in the world. It is also the fastest growing economy in the world, with a current growth rate of 7.8%. The Chinese economy has multiple strategies to help promote the economic growth. One of which being, China investing heavily into education. Another strategy is attracting Foreign Direct Investors. Finally, one last strategy is China and their memberships in free trade agreements. Through these strategies China gained this high rate of growth and thrive to maintain it. China as an economy has change rapidly over the past few decades. It has gone from a war struck country prior 1978, in which the economy was greatly effect, to one of the largest…show more content…
As China’s economy has progressed they have become more eligible to invest into other countries. As of recent China has been investing into Africa. In May 2014 China’s premier, Li Keqiang, toured Africa for the first time since he took office in 2013. He visited Ethiopia, Nigeria, Angola, and Kenya and met with numerous leaders to discuss the developing relationships between the countries. In conclusion to the premier’s visit he gave a pledge for an additional 12 billion USD in credit and funding in hope of boosting the economic development of the continent… China is forecasted to become one of the biggest overseas investors by 2020. 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) Figure C Many Chinese millionaires are leaving China and moving into other counties like the US and Hong Kong, this is mainly because they want to ensure freedom of global mobility and access, as well as security and protection of their wealth for their families. On the other hand there are people moving to China for work. This is mainly in the middle class sector of jobs. Which includes teaching private English

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