China’s Economic Growth

China’s economy is measured in terms of GDP value. In the past 30years, China has been enjoying explosive economic growth reaching over 6.5% growth rate per year and in 2017, reaching a mindblowing value of 23.12 trillion, which allowed them to become the largest in the world. One primary reason behind it is that China has a compelling government spending, driving the overall economy up. These massive spendings are also because they own and dominate many industries. Moreover, the central bank takes controls of the exchange rate, being below the US, thus allowing production cost to be slightly lower than ones in the US.

This can be reasonably beneficial since the growth of China has allowed them to reduce poverty, now only 3.3% are living below 2300yuan. Meanwhile, the growing economy makes people richer; thus more expenditures will occur and allowing further job opportunity and more significant growth.

On the other hand, government spending creates a debt-to-GDP ratio of around 260percent. While, the high growth can bring harm to consumers, from pollution issues to food quality and even high rates of inflation.

For future sustainable growth, innovative companies will be needed in the Chinese market as well as the development of technology. As active consumer market occurs fewer exports are required for the country, thus may focus intensely on country development from all areas, including aircraft engines and clean cars.

Leave a Reply