China has experienced unparalleled economic growth over the past two decades. This excessive growth has made China the status of a major economic power in Asia. China lags behind Japan in terms of economic strength and lags behind the United States in purchasing power. In the world rankings, China is the sixth largest commodity country in the world and the twelfth largest commercial service exporter. It is also the biggest beneficiary of foreign direct investment. China joined the World Trade Organization at the end of 2001, further promoting China's advantages. Although there are some arguments that the actual growth of China's economic status is not as high as that proposed by the Chinese government, there is no doubt that China has entered the global arena as a major economic player.
Many experts are impressed by the exponential growth of China's economy in recent years. They call China a "world manufacturing center." Of course, as China becomes a major exporter of world commodities, this description, although exaggerated, is a great description of China's position in the world economy. However, this growth has been questioned by some experts and has worried other Asian countries. China's growth in the Asian market has grown steadily over the past two decades; this phenomenon is largely unmatched by any other country in the world.
Like other Asian countries and countries outside the geographic region, China's exports far exceed its imports. This growth has spurred interest in the investment sector and addressed the problem of global capital inflows into the national economy. Although China's exports still account for only a small portion of Southeast Asia's total, most experts ensure that China will become the largest commodity exporter in a decade. Experts also noted that trade surpluses with Western countries such as the United States and the European Union may sustain and encourage China's economic growth.
The attraction of China as a tourist destination has driven a part of economic growth. In the past two decades, the influx of tourists and the increase in inbound and outbound business travel have increased. Just like the rise of China's economic growth, its tourism market has experienced significant growth. At present, China has the fastest growing tourism market in the world, with more than 2 million visitors each year in recent years. As the country continues to develop in the commercial sense, more and more people will travel to and from the country. There is concern that China's growth as a consumer goods exporter may make other exporters somewhat powerless in the global consumer goods market.
However, some experts believe that this will not happen because the increasing globalization of the world consumer goods market may make other countries equally competitive in the production and export of communication technologies and electronic products, as well as in the production chains that exist in the country. Especially in the case of Southeast Asia, only the growth of countries such as China and its advantages as a participant in the world economy can be enhanced. However, experts also predict that China's growth, especially in the apparel and textile sectors, may lead to increased competition in the Southeast Asian market, which may make it impossible for competitive markets to keep up. Although this will certainly keep the market price at a low level, it will also give China a distinct advantage in Southeast Asian neighbors and adversely affect the wages and profit margins of industries in other countries.
There are also some concerns about the amount of money flowing into China compared to investments in other Southeast Asian countries. China's share of foreign investment funds is significantly higher than its neighbors. Especially in Southeast Asia, foreign investors are fiercely competitive, with nearly half of the funds flowing into China, and foreign investment funds in other countries have fallen by nearly 50%. Many experts pointed out that most of China's growth is the result of China's opening up of markets to foreign investors. Although it is still difficult to conduct business in China in a certain sense, economic opening is not only beneficial to investors, but also to China. Before the rise of China's economy, Japan was the only country in Southeast Asia recognized as a major player in the world's economy, and they were also recipients of most foreign investment funds.
However, it is conceivable that Japan has suffered economic losses due to China's growth. Because foreign investors recognize China's economic potential, most foreign investment funds have been transferred from Japan to China. In addition, Japan has to decide whether to invest part of its own money in China's economic market and growth. Although they have invested in China's growth in the past, with the plan to relocate several Japanese companies, Japan's investment in China may become stronger and stronger. Some experts predict that as China begins to invest in other Southeast Asian countries, China's growth will benefit neighboring countries. In fact, China himself has claimed that her economic growth should not be strained by neighboring countries, but should be a popular part of the overall growth area, because China is committed to sharing wealth.
Although some people think that China's explosive growth is a recent event, it has actually been a long time. Since China opened its economic and material boundaries to investors in the early 1990s, the country has been the beneficiary of most investors in the world seeking to invest in new markets. However, some experts predict that the general political instability in the region may be the collapse of China's economic growth, because these experts want to know how long the growth can continue, especially for the other regions of the region. These experts predict that the only way for other Southeast Asian countries to compete is to develop an effective trade policy similar to China. However, these countries that are in trouble due to internal political issues and lack of leadership may not be able to keep up. The rise of poor countries with stagnant economic conditions in China in recent decades is considered a huge success story.
Even during the economic downturn, China is one of the few countries to achieve steady economic growth. Some analysts insist that this growth has made China only support the United States as the world's total. Some even assert that in the next few years, China may indeed see that China surpasses the United States as the world's major power in all aspects, not just Economically. Of course, the rise of China as a world economic and political player has opened up exchanges between China and the United States and the rest of the world. China is now the second largest source of trade in the United States and many US investors have already carried US investment funds to fly to China. However, as some analysts predict, China will overtake the United States as the world's largest economy in the next decade, and other analysts believe that even if China continues to achieve sustained economic growth, there is no transcendence of the political structure of the United States is the world's superpower.
Orignal From: China's economic dominance as a major player in the world's economic players
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