Chinas Role in the World Economy Essay - 1417 Words

China’s Role in the World Economy Abstract This paper aims to discuss China’s role as a major player in the global economy and the impact China will continue to have on the global economy. This paper will offer a summary of two articles entitled, China Pushes for Bigger Role in Reshaping the World Economy and Singapore sees India, China Role Growing, which discusses China’s transformation into a dynamic private sector-led economy and its integration into the global economy. I will also offer my opinion on the future prospects of China’s rapid growing economy and trade expansion. China’s Role in the World Economy Over the past decades, the competitiveness of the United States economy has been outstanding because of its†¦show more content†¦Chinese banks are more stable and the Beijing government is sitting on the largest stockpile of foreign reserves in the world. Chinas power has been increasing in recent years as it has surged to become the third biggest economy, after the U.S. and Japan. Since the late 70s, however, Chinas economy has doubled every eight years. In that same period, the U.S. economy has doubled once. Today, average Chinese have some ten times the purchasing power they had just a quarter century ago. Chinas growth was led by exports and investments in fixed assets, such as factories and roads. China is now a powerful trading nation, and in recent years has been an avid consumer of industrial commodities such as copper, iron ore, and steel to fuel its rapid industrialization. Additionally, another main driver of Chinese growth was the Beijing Summer Olympics whom people looked to as a defining moment of Chinas rise. Chinas run of economic prosperity has been great news for millions of Chinese who have seen their living standards improve, as well as for global trade and the broader world economy. However, with all the foreign investment China is receiving, the country will only grow more and more interdependent upon the world economy. The impressive growth rate of China’s economy is not without its shortcomings. Problems such as inflation andShow MoreRelatedChina s Economic Impact On China883 Words   |  4 PagesChina becomes the second largest economy in this world and it has showed the remarkable economic performance over the last two decades after The United States. China’s gross domestic product (GDP) as Share of World GDP at PPP 25 years ago only reached around 4.7%, now China contributes 16.32% of world GDP. China exports the relative cheap products that lowered consumer prices acros s the globe, and its imports have had a major impact on global commodity prices. 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