StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Economic Policy of China - Essay Example

Comments (0) Cite this document
Summary
Today all eyes are on China's which is the second largest economy and has successfully implemented open door policy in this era of slow economic recovery, and uncertainties. Nevertheless China has become the Asian locomotive for economic growth. (UN, 2003)
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.3% of users find it useful
Economic Policy of China
Read TextPreview

Extract of sample "Economic Policy of China"

Download file to see previous pages The two way trade in China has grown faster than it's GDP for the last quarter of the century. (Ken Davies, 2000)
After 1979 the Central - Local Relationship was made flexible: This initiated a loose and decentralized management controls over policy making, resource allocation, production issues (Ravi, 2005). The authority of local government people as well as plant supervisors in the industries were increased through the increment in the autonomy of public enterprises. This encouraged the private sector in the services as well as the light manufacturing industry. Foreign trade and investment was increased through a diversification in the banking systems, development of stock markets, and encouragement of the private enterprises (Baizhu & Feng, 2000). An example of localism is that the central government is subjected to severe budget deficits while revenue generation of local is increasing. The budget stood around -7.0% of GDP in 2006.
There has been a trend of changing role of institutions. Structural downsizing of State organs, streamlining departments, and creating institutions like the 'the National Development Planning Commission', 'The State Economic and Trade Commission' and 'Ministry of Commerce' to manage the macroeconomic competitiveness that China is striving to achieve.
According to the purchasing parity as it accounted for 12 per cent of global GDP. Ever since the 1980s the real income has grown approximately 400 per cent per head, and the export import has increased 11 to 13 per cent per year. The manufactured goods constitute 90 per cent of the total exports while the ratio of trade-in-goods to GDP today is around 50 per cent. (Sally, 2004)
Today not only are the Chinese commodities exported to the world a large amount of foreign commodities pouring into China. During the period 1990 to 2001, the world's exports were growing at the rate of 6.3% while in China the exports experienced at 14.9% growth. The import growth rate was 6.5% on average while China had 15.5%. The Chinese products not only prove to be cheap and efficient but also the foreign companies become price competitive by producing in China. (People's Daily Online, 2003)
China's trade liberalism is directly linked to the open investment policies. In 2002 the Foreign Direct Investment was $450 million from $90 million in 1990. It represented 36% GDP of China whereas 6% of the world's total. Most of the FDI stock comes from the manufacturing sector which constitutes about 7% of the world's overall manufacturing. (Sally, 2004)
Despite all the good things about the openness of trade there have been some major macro economic issues that the country is currently facing today.
The first is the external debt issue. In 2005 the three main indicators of external debt were way below the internationally accepted line; this is an alarming situation for a country like China. The external debt as compared to the GDP was 12.63%. Another issue is the public debt. China's public debt was 22.1% of total GDP (2006).
In 2005 Standard and Poor's revised China's credit ratings saying that China had come out of the instability and made progressive reforms and successfully implemented them. The rating increased to A- from BBB+ for levels above the 'non-investment' status that shows S and P's has a more positive of China. Moody's Investors Service has rated China favorably five notches above the non investment status. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Economic Policy of China Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Economic Policy of China Essay Example | Topics and Well Written Essays - 1250 words. Retrieved from https://studentshare.org/miscellaneous/1501612-economic-policy-of-china
(Economic Policy of China Essay Example | Topics and Well Written Essays - 1250 Words)
Economic Policy of China Essay Example | Topics and Well Written Essays - 1250 Words. https://studentshare.org/miscellaneous/1501612-economic-policy-of-china.
“Economic Policy of China Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/miscellaneous/1501612-economic-policy-of-china.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Economic Policy of China

China (1000-1600CE) economic

... in these cities. The most successful businesses in this period tended to be family owned enterprises and these experienced a fair amount of success as the quality of products from particular businesses was well known by their customers. The government’s lifting of all restrictions to trading activities greatly enhanced the business activities in China and this led to incredible economic growth and an increase in the wealth being brought in from trading with other countries. Chinese commercial activities spread overseas especially after the compass was invented and the government encouragement to merchants to invest in overseas ventures.5 This not only saw an increase in the coming of outside goods to China, it also brought Chinese products...
4 Pages(1000 words)Research Paper

China. Economic Analysis

... the citizens. Energy sources are a serious concern, for this purpose the government in recent years has started focusing on energy sources besides the conventional sources. Nuclear power plants and other renewable energy sources are in line for this purpose. Only recently did China become the world’s largest exporter to all parts of the world. This despite being the recession that has hit the entire world with its storm. While the period from 2008 to 2011 marked severe lows in the world market, china has shown better performances in terms of their economic growth, their exports and other variables. They have devised policies that ensure minimizing the deficit and losses due to recession. Though it would be a biased statement to say...
7 Pages(1750 words)Essay

Economic Environment of China

... and almost 36% of the population of China came under this policy as in 2007. This had led to a decline in the population growth rate of the economy. The way in which the Chinese population dropped over the years has been shown in the table below. Chart: Population Growth Rate of China. Source: National Bureau of Statistics of China Due to the adaptation of the communist methods of economic systems the Chinese government put a central control over most of the industries in the country. This allowed the government to accumulate the funds that came out of the surplus production in one place (Cai 203). These funds were then channelized into the right project that needed financial backing. The government during the year 1979 had a rate...
17 Pages(4250 words)Essay

Economic Development of China

Nellis (1999) contends that the effectiveness of privatization in transitional economies depends on the existence of the institutional underpinnings of capitalism. In addition, empirical studies confirm the close relationship between good institutions and economic development (De Long and Shleifer, 1993), Besley, 1995; Knack and Keefer, 1995; Easterly and Levine, 1997, 2003; Acemoglu, Johnson, and Robinson, 2001).
On the other hand, Stiglitz (1999) suggests that using "better management contracts" to make state-share holders act like private owners is a better choice in the absence of those institutional underpinnings, a path which has been followed by the Chinese government in the past two decades. As noted in World Bank (1997...
47 Pages(11750 words)Dissertation

Economic Reform of China

... strict foreign policy of US such as Sudan, North Korea and Iran. CONCLUSION: The economic revolution in China opens the gates of prosperity and growth of the country. This leaves a deep effect on various factors. The budget of the state significant altered. The least developed areas are focused and were heavily financed. The major preference of the government was to utilize the efficient labor and farmers in a productive way. Further more the benefit of economic reform in China was poverty reduction. Now the people of China got opportunity to choose the job they want to do. Further more it increases per capital income and the common man takes full benefits from the revolution. Further more the people of China enjoy the wealth disparity...
5 Pages(1250 words)Essay

Monetary Policy in China

...A MACROECONOMIC ANALYSIS OF THE NEW YORK TIME'S ARTICLE "AS ECONOMY SLOWS, CHINA EASES MONETARY POLICY" [your teacher's name] [name of the course] [date] Article summary In September 2008, the Politburo, China's highest-ranking decision-making body announces a change in the monetary policy in the economy. As the country for the long time employs a tightening policy in order to combat inflation, the country takes on a reverse direction through a loosening monetary policy. In order to sustain development in the country, the Politburo believes that previous efforts are not enough when protecting the country from the global economic downturn. As the country's exports begin to slow, its real estate industry weakens, and the lost...
7 Pages(1750 words)Essay

China Economic Report

...Running head: CHINA’S ECONOMIC REPORT China’s Economic Report Insert Insert Insert 17 October China’s Economic Report Introduction China is regarded the tiger of Asia, both economically and militarily. Both neighbors and international community remain unease with China’s domestic and foreign activities. However, for China, economic growth is the headlight, which the country should never put off and this has for a long time reflected China’s domestic and foreign policy framework. Numerous questions still disturb analysts and this has to do largely with perspectives the analysts decide to take. For example, issues such as whether China’s international policy is premised on cooperation or conflict, how the country has adjusted to period of G...
5 Pages(1250 words)Research Paper

Economic Analysis of China

...Economic Analysis of China Contents Emergence of the economy of China 3 Fiscal Policy 3 Monetary Policy 4 Trade Policy 5 Projections for the next fewyears 5 Works Cited 7 Appendix 9 Emergence of the economy of China The country of China accounted to just 10% of the worldwide growth in 2001. After the recession, when the World was paving the way to find the right path, the country contributed to almost 30% of the growth. So the country has managed to evolve as the second largest economy within a decade. A decade ago, the current account surplus of the country was at 2% of the Gross domestic Product while the reserves in foreign exchange were at 14% of the same or 166 billion dollars. In the year 2010, the current account surplus...
6 Pages(1500 words)Research Paper

Economic Development Policy: China and India

Countries with such a large collective workforce have the potential of greatly impacting the world economic balance. In order to compare the economic success of a country, a historical long-term background must be established to be able to visualize economic trends over time. In terms of GDP per capita at the turn of 19th century India held a good advantage over China in this economic metric which is a good indicator of the size of a countries economic activity. Toward the 1950s the gap had widened and India acquired an advantage of over 40% in total GDP over China. In 1950 India transformed its governmental structure into a democratic political system. China at the time was a communist nation and has continued to be one as of tod...
6 Pages(1500 words)Case Study

United States Foreign Policy from 1945-1991

American Presidents presiding over some key events in history, such as the Cuban Missile Crisis, The Cold War, The Vietnam War, etc., were hindered from acting as public representatives due to pressure from the military-industrial complex. John Kennedy, Lyndon Johnson, Ronald Reagan, George Herbert Walker Bush, and George W. Bush – all of them were subject to these opposing interests. But eventually, the corporate-government nexus proved too powerful; and in this sense, American Presidents after the Second World War were largely restricted and powerless to uphold their higher personal values. Most of the strategic moves on part of the United States after the end of the Great War were directly in response to an anticipated th...
11 Pages(2750 words)Essay

The Economic Impact of the Emergence of China and India

The main macroeconomic variable that toys in the global economy’s shift are the emergence of India and China as new superpowers. This emergence certainly has a number of implications, but among the most relevant are: disruption of the equilibrium of the global economy which results in rising demand of goods, giving way to worldwide inflation; the attractiveness of outsourcing to these countries due to low cost but high talent workforce of these countries for cheaper operations.
The growing middle class of China and India results in booming demand for the automobile industry. This increase in demand, with the increasing purchasing power of these countries’ people, is not limited to automobiles but more apparent in...
10 Pages(2500 words)Assignment

Emergency Economic Stabilization Act of 2008 and How It Has Impacted the Financial Markets

Though there were objections from various quarters about the huge amounts of tax payer’s money being used in the bailout of huge corporates, the Act has been successful in moving the downturn towards a flat point and now has started slowly moving towards a recovery stage. The various programs under the EESA 2008 have played a significant role in the financial sector, housing mortgage, and banking institutions to save the institutions from complete disaster.

The Emergency Economic Stabilization Act is a huge taxpayer bailout designed to rescue the financial sector. The amount of money to be used is around $700 billion or $2000 per American citizen (Public mark up). Emergency Economic Stabilization Act of 2008 is al...
10 Pages(2500 words)Research Paper

Information Security Policy of Organization

In the modern age of information technology, there are many threats created for organizational information. Organizations need a security model that has the capability to handle and secure our information reserves. Technical administrative safety /security measures like security plans, actions and procedures are the general practices for the organizational information security procedures. The attentiveness of producing actions is concerned by the organizations to an appreciably smaller level, on the other hand at the same time these are weighed up as being further efficient organizational actions than technical administrative ones. Information security encompasses organizational features, officially authorized aspects, institution...
6 Pages(1500 words)Research Paper

Economic Analysis of India

The country’s economy is fast growing with a stable political system that encourages foreign investment although with certain restrictions. The country generally has good energy, transport and communication systems which make the cost of doing business affordably.

The Republic of India found South of Asia is by far the world’s most populous democracy and ranks seventh largest in terms of geographical area (Brown, 1994). India is also the second most highly populated country in the world. The country has a rich culture with four major religions having originally emerged from it; Sikhism, Buddhism, Hinduism, and Jainism. The Indian Republic consists of seven union territories and 28 states and ranks twelfth la...
8 Pages(2000 words)Case Study

China Faces Pressure over Currency

Making its products cheaper in the US and thus encouraging imbalanced trade. It has been universally agreed that the free-floating Yuan would be significantly worth 15 cents.
Chinese economists feel that the impact has been over-exaggerated and particularly to America from Yuan revaluation. In particular, a stronger Yuan will not reduce the US’s trade deficit as there is a very smart segment of overlap between China and America Production and hence the US will not be able to replace Chinese imports. The consumer will end up paying more for imports from china or Vietnam and this would be like imposing a tax on US consumers.
The World Bank chief also disagrees with the US’s suggestion on China's currency rise a...
9 Pages(2250 words)Assignment

Bernard Madoff : A Scapegoat of the Economic Crisis

Darwin was condemned and treated with contempt by the Church for proposing the theory of evolution that linked all living matter in the earth, including humans. In the case of Bertrand Russell, he was imprisoned as a conscientious objector, for expressing his opposition to British participation in the First World War. These are typical examples of people being wrongfully punished when they were guilty of no crime or fraud or misdoing. It would be highly improper to associate Bernard Madoff with the aforementioned luminaries, for he was truly guilty of carrying out the biggest financial fraud in modern history. At the same time, it would be simplistic to classify him as a victim of the contemporary judicial system. The truth, in fa...
6 Pages(1500 words)Assignment

European Union Policy: Turkey

...Running Head: European Union.... Topic: European union policy Order#: 377392 Topic: European union policy Profile of Turkey-history, geography and population: “Area: Approx 780,000 sq km (300,000 sq miles) Population: 71.9m (July 2008 est) Capital city: Ankara People: Majority Turks. Minorities recognised under the Turkish Constitution: Jews, Armenians and Greeks. Other ethnic peoples include Kurds, Circassians and Bosnians. Language: Turkish (official), Kurdish Religion: Muslim Currency: Turkish Lira (TL) Government: Parliamentary republic. Membership of international...
9 Pages(2250 words)Case Study

International Business: World Economic Forum and Davos 2010

...Introduction Globalization, one of the most hotly debated issues means global capitalism to some while others consider it to be the continuation of modernism with the forces of wealth, progress, democracy and happiness at play (Kellner, 2002). Globalization is considered to be beneficial which promotes economic prosperity, cultural diversity and technological advancement. According to the critical social theory, technology and capital work together to create a new globalized and interconnected world. While each force of globalization is important, technological revolution has impacted the business models, value creation and differentiation (Spelman, 2010). The cloud computing technologies that have made the popular social networking...
7 Pages(1750 words)Coursework

Globalization and World Economic Forum at Davos 2010

... increase in the income of women which is expected to be $5.1 trillion by 2013. By earning more and influencing purchase decisions, women have acquired greater power in the market place. There is a greater emphasis on building vibrant business ecosystems that harness a shared foundation of technology and knowledge to accelerate growth and innovation (Tapscott, 2010). The Chinese exuded greater confidence than ever before and flaunted their economic performance. A visible signs of power shifting to east particularly China were clear and loud. Whether this shift will lead to cooperation or confrontation is a question that hovers on the western and American political and business mindscape. The projections were however marked by cautious...
7 Pages(1750 words)Coursework

Economic History of China

... Economic History of China Industrial revolution made many changes in the world. It is the period between the 18th to the 19th century where most of the countries base their success today. During that time there was major changes in the Agricultural sector, manufacturing, mining and transport and communication. In the final phase of the industrial revolution most of the countries made sure the economy was able to be conducive and was able to produce and transport. What was happening in the northwest Europe and China? Pomeranz has got a large impact on the topic of divergence. He bases all his arguments to the 18th century. He explains more about the industrial revolution in the North West Europe and the parts of china that had developed...
12 Pages(3000 words)Term 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 Economic Policy of China for FREE!

Contact Us