Question

How has China come to be one of the major forces in the world?

 

 

Answer 1

Chinese economy is an external economy due to strong demand for Chinese products as they are available at cheaper rate. To maintain growth and currency stability, China fixed its currency by undervaluing it on the market. It is not fair however; this strategy keeps the demand for its products higher and shows a favorable position in the international market [trade perspective). China has grown its GDP at an average of 10% per annum and is expected to surpass United States of America by 2025.

 

The key drivers of China’s success are its people and culture that shaped their characteristics of hardworking, ambitious and caring to their families.  The next secret of China ‘s success is its high emphasis on education  and that is why every year China educates about 6-7 million graduates with high percentage in science and engineering degrees which is contributing a great part in its success. Or you can say that one of the major secret behinds China’s success is it adaption to modern technology, market mechanisms and management from West.

 

Another factor is China’s better governance by its government. Chinese government successfully implemented many pro-developmental policies such as Special Economic Zones and industrial development guidelines to uplift her industries.

 

When China recovered from recession, its GDP level increased quickly and it returned to the level which had been prevailing before the occurrence of recession.

The exports done by China have helped to lower the consumer prices throughout the globe. This led to increase in the aggregate demand throughout the globe.

 

After 2008, the share of GDP of China in the world economy had increased to 9.5 percent when it is measured at exchange rates in the market. Similarly, the production of goods and services in China with lowered commodity prices attracted rest of the world to import the goods from China.

 

These are the few factor behind China’s success making her a major force in the world.

These are the few factor behind China’s success making her a major force in the world.