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AIM : To develop an understanding of what has happened in Brazil or Canada or China over the last two years - Essay Example

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In addition, China was named the third largest trading country between the years 2009 and 2011 due to the high number of exports and import activities in the…
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AIM : To develop an understanding of what has happened in Brazil or Canada or China over the last two years
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Download file to see previous pages In the year 2011, China was named as the biggest import/export partner coming third and second respectively in the import and export activities globally.
Das (2012, p. 38) suggests, “China is considered as one of the most diverse economies of modern times”. This explains why the country is referred to as the ‘world’s factory’ in some economic quarters. Beginning 1978, the Chinese economy has reduced its over-reliance on state owned enterprises and focused more on private enterprises despite the fact that state enterprises account for approximately 46% of the nation’s industrial output. However, the Chinese government has most recently renewed its efforts in encouraging state owned enterprises mainly in sectors that stimulate economic development. Some of the key sectors that are state owned include; banking, telecommunications and natural resources.
Many countries have now recognized just how much China is strategic as a trade partner. Despite the success of the Chinese economy, there are growing concerns regarding the trade balance of China with the rest of the world. In particular is the U.S. that has a trade deficit with China amounting to up to $135 billion a situation that has tripled compared to the trade deficit of the US with China a decade ago? In addition, more concerns have been raised regarding China’s trading activities where China has been accused of unfairly offering subsidies to stay ahead of competition in terms of the global trade. Some economic analysts argue that China as an exporter dumps substandard products in developing countries in order to maintain their trade dominance in the global front. China exports include among other products; textiles, electronics, data processing equipment and integrated circuits. The total value of Chinese exports currently stands at $ 2.05 trillion. As stated by Anderson et al (2003, p315), China imports from other countries ...Download file to see next pagesRead More
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