The Growth Of China 's Consumption

These effective strategies helped Hong Kong overcome the financial crisis. All these facts fully demonstrated that China is a responsible big country. After the Asia financial crisis, the importance of China's economy has been brought into focus; China's neighboring countries have begun to recognize the influence of the Renminbi.

Inflation in China accelerated in november, as economic growth picked up and food prices rose. Chinese consumers paid 2% more for good and services in november then they did a year ago, the government's national bureau statistics reported on a Sunday. While that up from a 1.7% annual increase in october, it nevertheless represents tame inflation for the world's second largest economy. A year ago the country was experiencing an annual inflation rate at 4%. the Chinese government prefers to keep its annual inflation rate below 4%- a level it seems as consistent with health economic growth and consumer demand. The inflation rate averaged 4.23 percent reaching an all time high of 27.70 percent in october of 1994 and a record low of -2.20 percent in march of 1999. in china the most important components of the CPI basket are food at 31.8 percent of total weight and residence at 17.2 percent. Recreation, education and culture articles account for 13.8 percent; transportation and communication for 10 percent, healthcare and personal articles at 9.6 percent, clothing at 8.5 percent; household facilities, articles and services for 5.6 percent; tobacco liquor and articles for the remaining 3.5 percent. The CPI basket is reviewed every five years on the basis of household surveys. Revisions reflect new spending patterns and economic development, according to the nation bureau of statistics.

The China Boom: Why China Will Not Rule the World, by Ho-fung Hung. New York: Columbia University Press, 2016.

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)

This allowed the advent of privatized and foreign companies to compete with the state-run enterprises. China weathered the 2008 economic crisis pretty well; however, the policies implemented during the crisis to foster economic growth worsened the country’s macroeconomic disparities, which is one leading cause of the Chinese stock market plunge earlier this year (2015.) In order to tackle these imbalances, the new administration of President Xi Jinping and Premier Li Keqiang recently began to reveal economic measures aimed at promoting a more balanced economic model at the expense of the once-sacred rapid economic growth. This follows the logic of Keynes’ “stabilization policy”: reigning in excessively strong expansions to prevent their unwanted repercussions. The agenda of China’s top authorities also embrace daring reforms on interest rate and monetary policy management in order to adopt a more market-driven

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

In the 17th and 18th centuries, the demand for Chinese goods in the European market created a trade imbalance because the market for Western goods in China were non-existent; China was very self-sufficient with their produce and tools that they didn’t require imported goods.(Fitzgerald, 1992 The Europeans were not allowed access into China 's interior market, the Chinese people didn’t have a necessity of imported items. European silver flowed into China when the Canton System, established in the mid-18th century, confined the sea trade to Canton and to the Chinese merchants of the Thirteen Factories. (Hanes, 2003) The British East India Company had a monopoly of British trade. The British East India Company began to auction opium grown in India to independent foreign traders in exchange for silver. (Hughs, 1972) The opium was then transported to the Chinese coast and sold to local middlemen who retailed the drug inside China. The flow of silver was increasing in numbers as well as the amount of opium addicts that had alarmed Chinese officials. (Lim, 2011) The drug weakened a large percentage of the population, and silver began to flow out of the country to pay for the opium. Many of the economic problems China faced later were either directly or indirectly traced to the opium trade. (Keller, 2012)

It is well known that China is one of the biggest countries in the world in terms of area which covers an area around 9.4 million square kilometers, and also has the most heavily populated countries in the world with a population of 1.4 billion ( continue to increase ) between the years of 1950 - 2015 ( Population Research Institute, Morse.A , Feb 18, 2015 ). China's population is concentrated in the urban areas because of the availability of modern and civilized life, such as Beijing, capital city with 130 million of china’s population, which become the largest city most populous in the world in the year 2015 ( Population Research Institute, Morse.A , Feb 18, 2015 ). The number of 1.4 billion become a scary number in term of population in one country like China because to compare with other world’s population it’s equivalent to 19.22% of the total world population ( Population Research Institute, Morse.A , Feb 18, 2015 ) .

China’s exceptional economic growth could barely be suppressed in China’s borders. Although China was both a giver as well as a receiver of economical communication throughout Eurasia. One of China’s many effects of their economic transformation lay in the dispersal of its tegnological advancements to people and places as the migration of soldiers, merchants, traders, slaves, and pilgrams, carried their accomplishments internationally. China’s unique way of manufacturing salt by solar evaporation spread to Christian Europe as well as the Islamic world. Papermaking, which started during the Han Dynasty, spread to Vietnam and Korea by the 4th century, Japan and India in the 7th, etc. Both printing as well as papermaking were both heavily affected

China has undergone three major stages since 1979 (Lecture). In the first stage (1978-1984) China increased the economic productivity of all industries by improving the incentive structures. In doing so, China was able to increase agricultural output by 42 percent. By imposing these urban reforms, the effort became to increase autonomy of enterprises’. During the second stage (1984-1991) the incentive of the reforms were to improve resource allocation mechanisms (Henderson pg. 40). The core focuses of these reforms were, the material management system, the banking system, and foreign-trade management system. The current third stage of reform (1992-present) has dealt with the macro-policy environment, as well as the reform of exchange-rate pricing and interest-rate policies.

Concerned investors overreacted to the news of a slower Chinese economy, which partly explains the stock market turmoil in the U.S. and around the world. China’s economy is not immune from the business cycle. Its economy’s growth rate eventually came down from the double digits to the single digits as it undergoes structural changes. China is shifting from an export-led to a domestic consumption driven economy. Since 1976, the beginning of China’s journey towards integration into the global economy, annual GDP growth averaged 9.5%. Since 2012, growth has been below average falling to 6.8% in the fourth quarter of 2015. While it can be argued that China’s economic slowdown has both direct and indirect effects on the U.S. economy through trade and financial flows, a slowing Chinese economy has marginal effects on credit unions. Moreover, it is difficult to aggregate the effects of China’s economic slowdown in future U.S. economic growth.

The trade-off between economic growth and redistribution has become one of the major notes concerning the emerging economies of post-Cold War world. Adding to this struggle the urge to integrate into the international system while keeping the balances right at home has been another macro-level concern. In conjunction such liabilities not only necessitates the examination of fiscal and structural reforms but also the international trends as well within an historical framing. For that matter the case of China is fascinating in terms of blending these elements of economic and political changes in the last 30 years. However this attempt is not without a cost. This paper aims to

Furthermore, monetary conditions in China have changed as a result in Chinese’s GDP growth. The Chinese Central bank has reduced its reserve requirements and the

Since the financial tsunami and the bankruptcy of Lehman’s Brother in September 2008, the world’s economy took a deep plunge and the Chinese economy is no exception. In the wake of the global financial crisis, The Economist (2008) reported that China’s real GDP growth slowed to 9 percent in the third quarter of 2008 and export growth slowed to 21.1%. It was, in fact, well below analyst expectations and recent

By analyzing sectoral trends in investment and savings, Kuijs (2005) agree with Anderson’s argument: the China’s high savings rate is mainly driven by its high government savings and high enterprises savings. After comparing with other countries, Kuijs points out that the investment by households and the direct investment by the government has been relatively steady at the same levels as other countries. However, the investment by the enterprise sector is