Chinese Economy Analysis

990 Words4 Pages
Overview of the Chinese Economy
Out of all 195 economies in the world, china is ranked 2nd in Gross Domestic Product (GDP). China has a total population of over 1.3 billion people. The average annual income in china is around sixty-four-thousand yuan, which is around ten-thousand Australian dollars. China has an annual increase in GDP of 10%, which makes the world’s fastest growing economy. In 1981, 88% of China’s population suffered from poverty, in 2012, it dropped to 6.5%. China’s reaction to globalisation assisted in there GDP to rise and resulted in multiple trade agreement with other countries, which caused in an increase in trade and profit. These factors impacted on China’s economic growth and development.
Explanation of how globalisation
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Trade agreements between countries have been put in place as a means to increase the trade between countries. China has 14 free-trade agreements with economies around the world. By creating these free trade agreements, economies are able to trade as much resources and goods with other economies with no applied tax. Furthermore, by creating these free trade agreements, economies are also encouraged to trade resources and goods with countries that cannot produce themselves or lack in. In 2012, China became the biggest trading nation in the world. This has been measured by the amount of exports and imports that China has. The USA’s exports and imports added up to $3.82 trillion USD in 2012. China’s exports and imports added up to $3.87 trillion USD in 2012. Free trade is extremely beneficial for economies as it has influenced China’s GDP and has made It closer to becoming one of the super economies in the world. By utilising the trade system, China being the main hub for trade can produce and sell products at a price that is lower than the developed…show more content…
This policy was called the Great Leap Forward. The Great Leap Forward was an economic campaign run by the communist party of the People’s Republic of China and was aimed to span from 1958 to 1962. It was brought into place to evolve China from being based in the farming sector, to the industry sector. Although this strategy was not passed, China did consider the advantages and benefits of this idea and integrated them into their economic system which is still in place today. This was called the Open-Door
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