Essay Sample on Chinese Economy

Introduction

China is one f the fastest growing economies over the past 30 years. As statistics show, China is indeed the biggest and fastest growing economy in the entire world with most of its success based on the mixed economy. The Chinese economy has shifted sharply from the Asian based communism policies to a mixture of both capitalisms fused within the command economy. The mixed economy effectively placed China on the driving seat of the Asian economy emerging as the greatest manufacturers and producer in the Asian region (Shambaugh, 2013). The Chinese government has been careful with its spending which has been the greatest driver towards the development f the Chinese economy. However, with all the positive pointers to the promising fortunes for the Chinese economy, it would be interesting to find how much the future of the Chinese economy performs against the global economy.

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While the future of the China economy remains promising and competitive, the history of the Chinese economy and how it defines the future is an aspect that cannot be assumed at all. The government's spending is the single most contributors to the promising future of the Chinese economy. The government has had a dominant stature at some of the leading industrial players in the Chinese economy. For instance, the government is the biggest shareholder in the PetroChina industry, Sinopec, as well as the CNOOC, which are some of the greatest drivers of the economy (Haltmaier, 2013).

The future of the Chinese economy remains brighter by the increase in the financial prospects of the country. For instance, every indicator shows that the current balance of trade is in favour of the Chinese government. For instance, the People's Bank of China remains as one of the biggest global financial lenders to many growing countries across the world. With the rise in the cost of borrowing and the accumulation of the interest rates, there is a pointer to the fact that the People's Bank of China has a large stake in determining the trend of the global trade (Shambaugh, 2013). The emergence of the strong completion of the Chinese Yuan t the dollar value is a promising factor to the fact that China controls the prices for exports to the United States.

The future of the Chinese economy does not seem to dwindle anytime soon, owing to the fact that the cost of living in China is way much lower than that of the developed world, especially in European countries. Therefore, there is a high propensity to invest with relatively low-interest rates of investment. The banking sector is able to lend money to willing inventors, this provides the impetus to invest more and consume less by the public. According to Haltmaier (2013), with the rising rate of investment, the Chinese citizens have continued to invest in foreign countries while channeling the profits back to China to build its local economy. The evidence is the number of Chinese industries that dominate all the developing countries across the world.

The rise in fortunes for China economy has served to reduce the poverty rate in the country. In this case, therefore, a paltry 3.3% of the overall economy seems to live below the poverty line set at 2,300 Yuan. The country contains up to 20% of the total global population, thus their economy is prone to improve owing to the fact that their population is enough to consume everything produced locally (Shambaugh, 2013). More companies will also want to custom-make their products to sell into this promising economy while also seeking to improve their revenues. The Chinese economy is, therefore, one of the most futuristic and promising in the entire globe.

References

Haltmaier, J. (2013). Challenges for the future of Chinese economic growth.Shambaugh, D. L. (2013). China goes global: The partial power (Vol. 111). Oxford: Oxford University Press.