The economy of the Republic of China - Essay Example

Download file to see previous pages It has ensured that the resources in the nation are well galvanized to ensure they are projected towards the interest of the state and, in this case, to spur economic growth. However, the same regime has been put into the limelight by Western media of its unethical practices, especially in trade operations. China is accused of undervaluing its currency to ensure its local companies receive an undue advantage over their competitors in the global front. Locally the state runs almost 60% of the manufacturing firms; those enterprises are often favored to ensure they are advantaged over private companies in terms of government regulation and other elements (International Economic Association, Aoki, and Wu, 2012).Economic analyst and policymakers at the People’s Bank of China have been working to come up with an elaborate strategy that will see the country make a ‘safe landing’ once its economic growth rate subdues. It is a mitigation effort that is meant to prevent the nation from past economic catastrophes that had hit it back in 1985-1989 and 1992-1994 when the constant growth that China was undergoing drastically dropped thus affecting the economic system with massive inflation (Knight and Ding, 2012). It is prudent that trade in the modern world is market-driven; The Chinese government is relaxing its grip on the economy allowing litigations that are aimed to transform the economy to be market-based to ensure it naturally survives economic conditions in the future. ...Download file to see next pagesRead More