Question

Outline of current policy in China aimed at addressing GDP. Describe measures currently or previously attempted in the country to address the issue, and explain the impact of these on the population.

Answer 1

China had economic policies that made the chinese economy really poor, a central control, not efficient and an economy which stands alone from the other economies. This was the condition in china before the liberalization of trade and globalization.

Since 1979, china opens up the investment and trade with other foreign nations. Then china took a position in the fastest developing nations world wide and has an average GDP of 9.5 percentage by 2018.

Then china became an important commercial partner with US due to its largest economy and being the largest foreign exchange holder. Then china became the major merchandise partner of US, importer, and one of the top export market of US. The treasury securities of US wer mostly kept by the china. This had helped to fund the federal debt and to reduce the interest rates of US.

The government of china also put forward many innovative policies such as 'Made in china 2025' inorder to rise the china's manufacturing sectors. This can make china eventually reduce the foreign trade dependence and thus dominate the global markets.

Due to this the GDP of china doubles by every eight years and took away the poverty of an averaga of 800 millions of people in china. The great population in china also favour the growth of GDP. Since china has highest population, there will be more workers and they have the working capability. Thus they can produce more commodities and services and as result, the GDP rises.

Thanks!..