In conclusion, it is evident that the economic relations between USA and China have a long standing ground even though historical studies at some point show that the two countries had their differences. To be sure, trade between these countries has been one-sided for most of the time considering the fact that China has
Economical Factors China is seen as one of the most energetic countries in the world when it comes to economic development. The new reforms in 1978 stimulated the Chinese GDP growth from 364 billion RMB to 63.6 trillion RMB within 30 years (chinability.com, 2015). China has persisted to be a primary beneficiary of the world’s destination of Foreign Direct Investment in the latest period. FDI reports 27% of the value added production, 4.1% of national tax revenue, and 58% of foreign trade (usi.edu, 2010). China was facing an economic growth and a huge development, even though the international financial crisis of 2008 left some marks on several aspects of China, above all the export-oriented light industry in southern China (chinapolitik.de, 2009).
So, another finding Paul cited in (Li Xing 2010) of the study was that Chinese exports to Nigeria were on an increase and the difference noticed in the increase of the Chinese export within 1976 and 1980, was 250 million US dollars. That is the increase in exports as said above was from 128 million US dollars to 378 million dollars in the respective years. Therefore, this type of situation reveals that China does saturate the Nigerian market with Chinese goods and this could in the other way round because unfavourable market conditions for home produce goods. Again, as years were advancing the trade relations between Nigeria and China was also on good terms in the sense that the trade volume reached 3 billion US dollar by 2004. Also in 2010 the value of bilateral trade between the two countries was 10 times what it was in 2000 that is the value of trade in 2010 was 17.7 million US dollars meaning that the trade value in 2000 was below 7 million US dollars as revealed by findings (Rothberg Robert 2008 P: 274).
It is within the international domain that China is first rising in the realism of global power. The economy is getting better by the day with impressive gross domestic product (GDP), the per capita income is also on its upward trend, while the military power is getting robust and resilient with every administration. The number of expatriates is increasing making growth be realized. More importantly, it is the technological advancement that China is sightseeing. This positive changes in China poise China to be one of the first growing countries that can rise to the levels of superpowers such as The United States of America.
The availability of different of resources such as land, labour and the natural resources is always the key to attract more investors. One of the advantages that company will get when they invest in China is availability if all kinds of resources. The most important one is the human resources. China is the largest country in the world in terms of population and so it own rich source of labour in the globe. Besides that companies also get the lower cost of labour force and very rich in energy resources.
The increasing number of foreign investors in China will have negative impact on the economy without government’s intervention. Without government intervention infant industries will not benefit from low taxes and incentive for exports and will fail to compete in the free trade causing unemployment in the country. Secondly with resource allocation, Chinese government controls the resources based on comparative advantage helping domestic firms to specialize based on cheapest resource available. The availability of the resources increases the output of domestic firms; this will improves the balance of payment of a country because of the increase in value of export compared to the import. Lastly the dynamic mechanism states that growth can be sustained by introduction of new technologies, foreign investments and from imports.
China and Globalization In an ever changing world, the rapid growth of our cities and technology has prompted an interconnected, globalized world. A major cause of this global prosperity is the expansion and acceleration of trade. The comparative advantage (when protectionism is unnecessary) granted by a free market has maintained a relatively high amount of contact between countries and guaranteed an invariable sense of competitiveness for the cheapest and most innovative products. A prime example, China owes its profound economic growth to globalization. Known as the “world’s factory”, China is the largest supplier of cheap products in the world.
It is within the scope of those areas that China interacts with politicians, elites and local people in enhancing mutual goals and objectives. Chinese operation in Africa can be observed by looking at the activities of formal and informal sectors aiming to realize socio-economic agendas, each of the actors has developed different stimulus hence their interaction develop different
By implementing this “Going Global” strategy, Bank of China has successfully taken a leading position for international business among the peers in the banking industry. We can say that Bank of China has superior degree on globalization of the customers. After 2013, the global economy started to recover and China as a crucial player successfully achieved its steady development and stable economic growth( BOC Annual Report, 2013, p18). Combinate prudent monetary policy and liberating RMB interest rate, China became donimnant in international financial markets. As the result, the banking industry has expanded and increased by 13.3% to RMB151.4 trillion( BOC Annual Report, 2013, p19).
In previous years, the development trend of the Chinese economy provided immense development space for foreign investments. Labor force was at a low cost and the government encouraged foreign investments through the developments of Economic zones. Such framework authorized foreigners to take advantage of Chinese labor, while the income is sufficient. Foreign investors also saw a broad potential as economic growth was escalating. However, the economic growth has grew at a slower pace of 7.3% since 2014 compared to 9.91% in 2008 (Shao, Spring, “China’s Growth Slowest Since Global Crisis, Annual Target at Risk”).