The Positive Impact Of Consumption On China 's Economy

China is the second largest economy in the world. It has become the fastest growing economy in the world with an average rate of 10% for the last thirty years. The largest exporter and second largest importer of goods has brought China to be ranked first in the foreign exchange reserves. The country with thousands of years of history, started off and continues today as mostly an agrarian economy. Over time China's economy continues to change and prosper. Starting with the first economic change in the early twentieth century, which occurred when the GMD (the Nationalist Party) lost control due to its poor economic performance. This in turn led to their defeat by the CCP. During that time many peasants lost their farmland and this led to a peasant

Located in Eastern Asia, China is a country known for being a worldwide economic superpower that has had a communist government for several years. Beginning in 1978, China, under Deng Xiaoping’s rule, began to incorporate capitalistic ideas in the government. Deng created various reforms unlike any of the policies or reforms in prior years that began to reconstruct China’s economy through modernization and by establishment of international trade.

Since the market orientated economic reforms were introduced in 1978 (Khan, Hu (1997, P103) China’s economy has seen a 10% increase in Gross Domestic Product (GDP) Per year (Vincellete, Manoel,

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

In 2014, China’s GDP (Purchasing Power Parity) was $17.62 trillion. However, China’s per capita income is below the world average. China’s GDP per capita stood as $12,900. According to Magnier (2014), “The country’s gross domestic product last year totaled

China has the largest population of any country on our planet Earth, with more than 1.35 billion people.

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.

The rise in China from a poor, stagnant country to a major economic power within a time span of twenty-eight years is often described by analysts as one of the greatest success stories in these present times. With China receiving an increase in the amount of trade business from many countries around the world, they may soon be a major competitor to surpass the U.S. China became the second largest economy, last year, overtaking Japan which had held that position since 1968 (Gallup). China could become the world’s largest economy in decades.

China has been moving to a market-based economy since 1978, and a relaxation of central control over certain aspects of the community has helped it become the largest developing economy and the second largest economy in the world when measured by Purchasing Power Parity.

A dual-track economic system was implemented during the rule of Deng Xiaoping in order to move China’s economy from a state planned system to one that is market driven. In the state planned system the prices of goods and production quotas were set by the government in the sectors that they controlled, while at the same time allowing the sale

The purpose of this essay is to show how the economy of China has, and is changing, becoming the second largest economy in the world today. Although China is currently under the leadership of Xi Jinping, this essay will concentrate primarily on the actions undertaken by then President Mao Zedong, followed by then President Deng Xiaoping, (sans mention of Hua Guofeng). Given the relative infancy of Xi’s assumption of power, economic policies still remain largely rhetorical in form. Likewise, the majority of literature concerning economic policies under Xi are largely speculative, often citing strategies and ambitions as opposed to thereby, lacking a solid basis for rational induction In addition to China’s lack of transparency, In addition, it will be shown that the methodology behind the Chinese economy demonstrates the implementation of varying levels of the characteristics associated with the schools of Realism, Marxism and Liberalism. Thus, China’s approach to global trade in the 21st Century is pluralistic, testamentary to the failed economic

In order to increase China’s consumption, it is important to figure out feasible policies that the Chinese government could implement to stimulate its consumption efficiently. Anderson (2007) points out China’s firms’ expropriate market share and profits from other countries cause China’s excess savings. Therefore, China’s imbalance economy does not result from low consumptions, but results from Chinese companies’ high profits and their rising savings. The banking system data shows that the household savings rate has fallen in the beginning of the decade. However, the drop in household savings rate is offset by a rise in the enterprise deposit share. This is confirmed by the flow of funds estimates. Although both household and government saving rates are high, neither ratio has changed much over the past five years. Instead, the real driver of the recent Chinese "savings boom" is the corporate sector, in which the estimated gross savings rate has shot up by nearly 7 percentage points since the beginning of the decade.

China has increasingly liberalized their centrally governed economy into a market-controlled economy and continuing this trend is likely to prove to be beneficial. Exploring the past, we will see where the influence for liberalization came from. How liberalization has allowed China to be where it is today as an economic super power and how it will influence the future of China’s development and association with the world economy.

Consumption refers to the aggregated value of goods and services bought by people in the country. It takes up 68% of the GDP especially for developed countries like the U.S as of 2014 (World Bank 2014). Its components covers consumer staples goods that are considered to be non-cyclical and energy products. Investment on the other hand includes the investment activities of private businesses such as acquisition and construction of new mine and factories. For the purpose of the discussion, the paragraph will focus on comparing U.S and China’s consumption because consumption is normally the largest GDP component in an economy.