Impact of China on Global Economy
Presently, China is without question one of the largest and fastest growing countries in the world. This had inevitably led it to become the most speculated economy as well. This is due to its large population size, its comparative advantage in production, and its ability to offer tremendous economic opportunities. All of this in turn gives China the capability to attract foreign investors and firms. Although after the end of World War II it has been America who is named as the world's strongest and most influential economy, China is rapidly closing the gap as we move into the twenty-first century. Nevertheless China's rapid expansion has attracted its trade partners to force China to revaluate its currency; one of the main drivers of such force comes from the United States. All of these factors are vital in enabling us to portray the complex mechanism of the Chinese economy; three of the most crucial issues are China's rapid growth in term of economy, its tremendous comparative advantage, and last but not least the recent revaluation of the Yuan.
Firstly, Let's take a look at the growth and opportunities in Chinese economy and market. China is a rapidly rising global economic power. But without the foundation we would never be able to climb to the top, so let's take a look at the history of china economy first. Since 1978 the People's Republic of China government has been reforming its economy from a Soviet-style centrally planned economy to a more market-oriented economy but still within a inflexible political framework of Communist Party of China control. This is called "Socialism with Chinese characteristics" and is one type of mixed economy. To this end the authorities have sw ...