Release Date: 28 February 2008
Release ID: 1425
Since the launch of economic reforms in 1997, China has become one of the world’s fastest growing economies. The economy has been growing at an astonishing rate of 9.5 percent per annum.
The rapid rise of China as key economic power in a time span of about 28 years, said to be one of the biggest economic success stories in modern age.
“For the first time in recent history, in next year china will make a greater contribution to global growth than the United States” IMF said in its biannual report 2007.
To an estimate one third of the real growth in world wide comes from China. Millions of Chinese have been living like Americans, and China has replaced United States to become the world’s leading consumer of most basic commodities like grain, coal and steel.
“Global Insight” an economic forecasting firm projects that China’s real GDP will grow average 7.8 percent over the next 10 years, and that China would double the size of its economy in less than 10 years. It further projected that the real GDP rise by 10.5 percent in 2007.Chinese merchandise exports will likely to exceed those United States by the same year.
The National Bureau of Statistics of China has projected a robust 11.5 growth rate for the year 2007.
It is said that the Chinese economy has overtaken the U.K and it will surpass Germany in December or early in 2008 as world’s largest economy after United States and Japan. Last year China’s total economic out put was 21.1 trillion Yuan or US $ 2.7 trillion, whereas Germany’s total out put was stood around US $ 3 trillion. This year Germany is forecasting 2.3 percent growth rate, while Chinese growth rate is projected over 11 percent.
In the light of above statistics, it is estimated that Chinese economy is going to takeover Germany sooner or later.
The story does not end here. According NBS 3rd quarter Report 2007, the total economic out put was registered as 16.6 trillion Yuan. In terms of dollars measure the figure stands as 2.2 trillion. The Central Bank is accumulating a colossal amount of 20 to 30 billion US Dollar reserves each month. The foreign exchange reserves, at the time of writing this article have already crossed US $ 1.4 trillion. In addition, the trade surplus reached US$ 186 billion marks.
Analysts believe that the strong momentum and host of supporting factors are contributing to growth rate. Owing to positive supply factors; consumption, export and investment remained at high growth level.
Spectacular economic growths not only have brought greater prosperity to Chinese people, but it also offers great opportunities to investors and business community around the globe.
Because of its simplicity of rules and regulations, minimum cost of doing business, China has become most favorable place for the world investors.
China’s good and cheap exported commodities have not only benefited numerous consumers’ world wide, American alone can save expenditures of nearly US $ 15 billion annually, but has also allowed foreign companies to purchase in china to reduce their production cost and increase the international competitiveness of their products.
‘Fortune Magazine’ reports that over 80 percent of the world’s top companies have invested in china with more than 2,000 investment projects. Similarly several Chinese Firms are also doing business globally. Chinese products have kept moving to the world, while large quantities of foreign products have also pouring into china.
This free flow of goods and service has benefited the world significantly.
China is endowed with highly skilled and cheap labor force.Unlike most developing countries china is enjoying political, social and economic stability.
China has implemented a proactive fiscal policy and its monetary policy is supposed to be more cautious.
China has followed the course of sustainable economic development, energetically promoting information, use of IT to propel industrialization, and development of high-tech industries and pressing head, in order to optimize and up grade the industrial structure.
Chinese authorities have vowed to pursue reforms, improve the socialist market economy and make the system more modern so as to provide investors of all types in the institutional climate conducive to fair competition and development.
China is an important force to promote economic cooperation and welfare tower in the world’s family of nations. China may be the only country on the world map which enjoys very good relations with all countries of the world. There is no discrimination or most favored nation’s slogan in Chinese diplomatic arena.
China has always played its vital role for peace and prosperity. Recent drift between the US and North Korea was able to settle in Chinese arbitration.
During the Asian Financial Crisis 1997, china strengthened cooperation with East Asian Countries and help them out of the predicament. China’s rapid economic growth has provided them with huge exports market and boosted East Asian economic recovery. History is full of such examples abound.
China is not only trying to expand its trade and cooperation in comparison with the developed countries, but also extended great support to less developed and deprived nations. Historically, most of African countries were ignored by the developed countries for variety of reasons, but china has always support these poor nations.
China has expanded its trade with African countries by in large. In 2006 China’s exports going to Africa was estimated as $ 26.7 billion and imports from Africa as percentage of its total imports grew from 2.8 percent in 2004 to 3.6 percent in 2006.In money terms the figure estimated as US$ 28.8 billion. Major exports to African countries in 2006, included electrical machinery such as computers, vehicles, apparel, iron and steel products. The top five destinations of Chinese exports in 2006 were South Africa, Egypt, Nigeria Algerian and Morocco.
China has been called as a locomotive engine for the Asian economies. Today Asian markets are flooded with cheap and quality Chinese goods. The purchase of cars, trucks, motor bikes, electronic gadgets, refrigerators, televisions and computers have become a living reality now. Asian market had never witnessed a high demand for durable consumer’s goods before in modern history. This should be attributed to china.
Chinese economy has shown an outstanding growth rate over past several years and many analysts’ projects that it will enjoy pretty good growth in future also. However some economists warned that these forecasts are likely to occur only if China help to make major reforms to its economy.
In response to such projections and cautions Chinese authorities have already geared up its reforms and eight priorities list has been prepared for the next year.
Unemployment, inflation, poverty, Intellectual Property Rights (IPR) and Environment degradation will be a top priority.
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