Economic Growth of China - Example

The paper "Economic Growth of China" is a great example of a report on macro and microeconomics. The economy of China has become the ultimate wonder of the emerging countries in the Eastern Asian world on account of the robust growth it had been facing in the contemporary years. The Chinese economy had begun to witness robust economic growth ever since the introduction of economic reforms in the 1980s. The government of China had introduced reforms to transform the centrally planned economy of China into an economy that is driven by market forces.

It was a deliberate drive towards liberalization that was taken up by the government. The immediate impacts of these reforms were manifested in the high rates of GDP growth of the country. Empirical research on the growth rate of China has shown that the average rate of GDP growth before the reforms was 5.3% and it had increased to 9.3% after the introduction of the reforms (Subramanian, 2011). Another milestone for the Chinese economy was the joining of the World Trade Organization in 2001. The import and export volume of the county has increased exponentially after joining the WTO and the trade relations of the country with other countries have been enhanced. The U.S.A. has become the biggest trading partner of China and the trading relationship between the two has a profound impact on the economy of both countries (Subramanian, 2011).

(This reference contains the data) Though there have been extensive discussions regarding the liberalization of the Chinese economy in recent times yet the liberalization of China had been often controlled by a strong influence of the government. The existing theories of economic trade assert that free trade between nations gives rise to gains for both nations. Based on this theory it can be asserted that the bilateral trade relations between China and the U.S.A. are likely to benefit both countries.

However, increasing trade between China and the U.S.A. has brought significant challenges for the U.S.A. Researchers around the world have reached a common consensus that the fast growth of China in recent years will help it to surpass the economy of the U.S.A. in terms of growth if the balance of trade is skewed in favor of China.