International trade and economic growth of China - Essay Example

Comments (1) Cite this document
This essay examines the relation between Chinese economy and the manner in which its rising level of international trade has contributed to its growth. The Peoples Republic of China is currently the world’s second largest economy, when measured in terms of purchasing power parity and nominal GDP…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.1% of users find it useful
International trade and economic growth of China
Read TextPreview

Extract of sample "International trade and economic growth of China"

Download file to see previous pages China before 1980s was agriculture based economy and almost all the businesses, factories and commercial activities were under the state control. Capitalism was a forbidden and a hated world (USChina, 2011). This section examines the growth of the Chinese economy and trade. 2.1. Growth of the Chinese Economy After the people revolution, China closed its doors to external influences, seized all private factories and businesses and nationalised all the industries and banks. The result was a total shut down of free enterprise. Capitalists and scholars were hunted down and all trade, industries were state owned. As a result, the nations stagnated and led to a sharp increase in poverty. While the rest of the world saw booms and busts, China had a stagnant and stable economy that was controlled by the state. The standard of living was slow and bicycles were the main mode of transport in the city. From 1979 onwards, the Chinese premier Deng Xiaoping started the measures of liberalisation, allowed trade with foreign nations, allowed FDI and created industrial zones along the eastern coast so that foreign firms could set up manufacturing activity (Zhang, 2007, p. 12). This far-reaching vision paid off and very soon, China started its upward trajectory of growth. The growth in the GDP and other economic indicators are given in Appendix “Table A1. China Economic Indicators – 1 of 3” to “3 of 3” that gives details of the economic indicators. Growth figures of the economy have been given for 19 indicators for the years 1980 until 2013. Projections for 2012 and 2013 are estimated figures. Following graph illustrates the growth rates in GDP, PPP and the CAB in USD billions from 1980 to 2013 (IMF, 2012)....
This paper presents a comprehensive review of various trade and economic policies that China has used to promote the growth of its economy, which is illustrated with the help of analysis of data from different databases on the Chinese economy and trade.
It is clear that China, which was lagging far behind the west has grown its GDP by more than 30 times from 1980 to 2011. This huge growth in GDP was brought out by growth in many sectors such as construction, industry, agriculture and trade.
China has used its trade policies in a very clever manner to trap the western nations at their own games. The western nations came to China initially to make use of the low labour costs. However, the lure of China proved to be very strong and hundreds of western nations moved to China.
China set up huge manufacturing centres where low cost labour was available and other benefits provided to western firms. Hundreds of firms from the west set up their factories in China and exported the goods to USA, Europe and many other nations.
China carries out trade with a large number of countries. However, the maximum trade in terms of value of goods is done with only a few nations. After the acceptance of WTO treaty, there was shift in the balance of trade in Chinas favour. In the previous decade, China was a net importer since it could not manufacture many of the products. However, with increase in the manufacturing sector, exports have grown.
With a positive trade balance, China offers a unique competitive advantage to western nations.
...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“International trade and economic growth of China Essay”, n.d.)
International trade and economic growth of China Essay. Retrieved from
(International Trade and Economic Growth of China Essay)
International Trade and Economic Growth of China Essay.
“International Trade and Economic Growth of China Essay”, n.d.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
laurenspencer added comment 1 year ago
Student rated this paper as
Wonderful paper! Used it to complete an assignment for a macro & microeconomics course. It was easy as ABC, for the first time in my life.

CHECK THESE SAMPLES OF International trade and economic growth of China

International trade, economic integration and international marketing

...International trade, economic integration and international marketing Various markets around the world provide new opportunities for industrial and agricultural producers. It is often beyond the capability of individual agents or firms to access the potential of various markets. Hence, the government plays an important role in providing market research, technical know-how, infrastructure support and promotion to enable the producers to make a mark in the international market (Nelson, 2007). The government can ensure an early entry into foreign emerging markets and gain a first mover advantage. The government must also make efforts to develop long term relationships with other countries in this regard. These steps may incur costs... in the...
4 Pages(1000 words)Essay

China Economic Growth Since 1949

...for near future investment. The reforms also provided better room for private ownership of production, and such privately owned businesses produced jobs, developed much-wanted buyer products, earned important hard currency through foreign trade, paid state taxes, and gave the nation's economy a versatility and resiliency it didn't have before (Shane and Fred, 2007). As a result of inviting foreign investment, China's open up-door policy features extra capacity to the economic change. Cumulative international direct investment, minimal before 1978, attained nearly US$100 billion in 1994; yearly inflows elevated from under 1 % of entire set investment in 1979 to 18 % in...
9 Pages(2250 words)Research Paper

China Versus India Economic Growth

...? China versus India Economic Growth China versus India Economic Growth In the recent times, there are two main successes that stand out; China and India. These two nations are just by their size, economic giants, and as they grow in the recent years, it is quite obvious that their continuous transformation will have significant effects, not just to them but the entire global community. China’s economy is highly developed than that one of India. While India is the 11th biggest economy in terms of the various exchange rates (Chow, 2001). China takes the number two position...
4 Pages(1000 words)Research Paper

International Economic Growth (Economics)

...Japanese Post-War Economic Miracle is the given to the historical phenomenon of Japan's record period of economic growth following World War II,spurred both by US investment, which has been made by the American government, under the auspices of the Supreme Commander of the Allied Powers, and Japanese government economic interventionism in particular through their Ministry of International Trade and Industry (Ellington, 2004). The situation in Japan in the first postwar years was more then just difficult. There was a total isolation from outer world. The state, which had lost during war almost 40 % of its wealth, which has haven't any raw...
6 Pages(1500 words)Essay

International Economic Growth

...INTERNATIONAL ECONOMIC GROWTH What were the main factors which helped create a global economy before the First World War Before the First World War, there were three main factors that helped create a global economy. Global economic integration actually takes place because of increased communication and trade. Before the First World war, even though the people living in the late nineteenth century were relatively poor, transportation costs had suddenly decreased due to improvements in technology. The economies had not undergone industrialization but were still far advanced if compared with their former years. Technological breakthroughs occurred like the...
5 Pages(1250 words)Essay

INTERNATIONAL ECONOMIC GROWTH PAPER the years were characterized by increased trading, due to reduced barriers and abandonment of protectionist policies. This bettered the relationships between countries, increased the emphasis on specialization, raised productivity and thus, brought about economic growth in many countries 9. Why did the Asian 'Tigers' achieve such rapid economic growth after 1950 while the Latin American economies struggled to expand The Second World War left its mark on the Asian economies as the per capita GDP on Purchasing Power Parity declined in many countries especially in China, India and Indonesia. However, in the post war period, the economy...
5 Pages(1250 words)Essay

International trade ( Economic )

...Outline THE INTERNATIONAL MONETARY FUND: ITS ROLE IN THE ASIAN FINANCIAL CRISIS The establishment of the International Monetary Fund The role of the IMF up to the early 1970s IMF after the early 1970s Capsule History of recent IMF interventions Mexico Russia Turkey Brazil Argentina Other countries The Asian Financial Crisis South Korea Thailand Indonesia Evaluation of IMF interventions THE INTERNATIONAL MONETARY FUND: ITS ROLE IN THE ASIAN FINANCIAL CRISIS The International Monetary Fund (IMF) is an organization formed at the Bretton Woods economic conference in 1944, tasked to maintain monetary stability in the world community (Investopedia). The...
2 Pages(500 words)Essay

Factors Of The International Trade And Economic Growth

...Factors Of The International Trade And Economic GrowthInternational trade is the exchange of good and services with other goods and services or with money. The transnational exchange of commodities is mostly influenced by the forces of demand and supply. Different countries are endowed with different resources that enable them to produce resources for sale. These resources include mineral resources such as metal ores of iron gold and diamond and petroleum and agricultural products such as plants and animals for food. Services for trade include tourism attraction sites, skills and technology.1 For trade...
2 Pages(500 words)Admission/Application Essay

China's economic growth

...China: Trade Policy and Economic Growth China: Trade Policy and Economic Growth A-2 Trade Policy In order to really understand the trade policies that China has developed its good to look at countries like Saudi Arabia and the nations of Africa. China has been building relationships for 50 years that are only now beginning to show the fruits of those relationships. When China first began creating foreign policies and relationships of Africa, as an example, it was with the intention of creating ideological influence....
4 Pages(1000 words)Research Paper

The Role of International Trade in Chinas Economic Growth

...The Role of International Trade in China’s Economic Growth INTRODUCTION China’s economic growth in the past twenty years have been considered as remarkable and even to some “miraculous” (Sachs & Woo 1993) as its open-door policy has been initiated only during the late seventies. But now we see that China, the slumbering dragon of Asia, has awakened and has taken the world market by storm. In fact, the strong performance of China in the global market has stirred the interests of both the academicians and businesspersons. The academicians focusing on theoretical...
16 Pages(4000 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic International trade and economic growth of China for FREE!

Contact Us