While all countries are important for the world economy, there are some like China that contribute immensely. China continues to open up and integrate with the rest of the world. This move has seen it become the most important economic driving force globally.
China imports and exports massively. Exports surpassed imports by 736 billion dollars in 2016, according to Economic Complexity Index (ECI). The country shipped the bulk of its exports to the U.S. Most imports originated from Hong Kong, while the U.S ranked as the third most significant source.
The World Bank in 2016 ranked China at position 4 regarding ease of doing business worldwide. Its huge population provides cheap labor. Cheap labor translates into competitive product prices, which gives Chinese companies an edge in the markets. This sizeable population also provides a big market not only for goods but also for those produced overseas.
China is the world’s second-largest economy. It has grown at a steady 10% since 1978. The year 2012 saw the country’s economy slow down. However, China accounts for more than a third of the economic growth that the world has had in recent years.
About seventy million Chinese still live in poverty, despite the fact that it is an upper middle-income economy. Also, its population is aging fast, and this should worry China. There may be in future too many elderly citizens who need government assistance. Moreover, it may no longer get cheap labor.
Finally, China is an economic force to reckon with. However, it needs to put some policy adjustments in place if it hopes to remain sustainable.
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