The growth performance of China Essay Example | Topics and Well Written Essays - 1000 words

The growth surgical process of mainland China - Essay ExampleAlthough, Globalization and liberalization policies were the brain child of the capitalist countries like U.S and UK, China seems to be the number one exploiter of globalization which helped them immensely in achieving tremendous economical growth. This newspaper publisher analyses the economic growth performances of China. During 19972005, the PRCs average annual growth rate in satisfying GDP was 8.9%. During the forecast period of 20052010, it was assumed that the PRC continued its historical growth trend of 8.9% per family (Mai et al, 2010, p.5) (See appendix for more details). China is able to continue or sustain their economic growth veritable(a) with the help of some unbelievable polices. In fact China has rewritten some of the established economic principles. For example, BACK,(2010) mentioned that in any other major economy where growth had accelerated as quickly as Chinas, high interest rate would seem ine vitable. But in China, authorities pick up been reluctant to raise pass judgment (Back, 2010). In other words, according to traditional economic principles, a country should increase the interest rates when they feel that that their economy is overheated because of over economic exercises. But China did nothing to cool raft the over activities in economic sector and kept the interest rates at a spurn level until now. Even though economists have some concerns about the over activities in Chinese economic sector and the low interest rates, no big problems were reported so far from China. Still, the government isnt dramatically cutting state-supplied credit. This years loan target, although down considerably from last year, is still more than 50% higher than that of 2008 (Roberts, 2010). some other interesting tactics which helped the economic progress of China is the mass return of consumer goods. When most of the other nations tried to increase the profit by increasing the pri ces of their products, China did entirely the opposite thing. They reduced the prices of their commodities and succeeded in sell more goods in international markets than any other countries. Thus they were able to counter the negative do of price reduction with the help of bulk production and selling. Mai et al (2010) have pointed out that the PRCs exports increase by about 46%and imports by about 45% relative to their respective service line levels in 2010. Imports and exports of all commodities and services rise relative to their baseline levels (Mai et al, 2010, p.7) Another important step interpreted by China for boosting their economic progress was the welcoming of FDI. Even though China is communist country, they have realized that without private capital it is impossible for them to advance further. Foreign investment helped China to polish their production technologies and management skills further. The key benefit of foreign investment is improvement in productivity as ot her players in the host industry catch up with the performance standards set by foreign investors (Mai et al, 2010, p.14) The economic reformation processes undertaken by China under the leadership of Deng in the 80s and 90s helped them to speed up their economic progress. Deng succeeded in relieving the industry sector from the complete dominance of the government and bay window of small scale industries