StudentShare solutions
Triangle menu

Economic growth in China and its impact on American economy - Essay Example

Extract of sample
Economic growth in China and its impact on American economy

The Golden Age of the China started soon after its amalgamation with World Trade Organization. The membership of World trade Organization has been of economic and industrial benefits for the country. Secondly, the normalization of the Communist China's diplomatic relationship with United States, have further boosted the momentum of Chinese economic activities. These two events are important because they signify the recognition of Chinese economy by United States and the world economic community as an equal partner. Since its membership, the country has become an important member of the world economic community and plays an important role in the global economy.
The partnership with WTO has increased the scope of China's market for international trade and investment, and has opened up the World economy for unrestricted China's exports. Economic analysts have viewed the so far progress positively, and considered it as a positive force for China's economic development, however others believed that the competition of foreign imports and foreign enterprises in China might destroy important domestic enterprises in China's agricultural, manufacturing and service sectors. WTO membership will hasten the relative decline of the agricultural sector and the relative rise of service sectors dealing with financial services and telecommunication. Secondly, the state sector will decline relatively to the non-state sectors and efficiency in Chinese enterprises will increase with foreign competition when tariffs are lowered and foreign firms can enter the Chinese market.
Although the concerns of the analysts have come up to be true, however the Chinese government's investment friendly policy and availability of local, cheap and skilled labor has turned the country into hub of industrial progress and development. The positive impacts are limited and controlled because the provisions of the WTO membership are limited in scope. 'The effects are expected to be gradual not only because the terms of the membership agreement are introduced gradually but because economic, legal and political institutions are difficult to change' (Solow, Robert M. 1956. "A Contribution to the Theory of Economic Growth": Quarterly Journal of Economics).
The open trade agreement is likely to develop social changes which have taken place in China since 1978. The changes have been as rapid as the Chinese people could absorb. Symbolically, China's position in the world economic community is openly recognized. China's entrance into bilateral and multilateral trade agreements have served as a blueprint for China's institutional changes. In the mean time, the scope and level of economic activities helped the Chinese leaders to project a better image of themselves in the world community; this has further improved their own confidence to govern. The psychological effects resulting from the status of international trade agreements, responsible for industrial growth, has pushed the Chinese leaders to adopt democratic reforms and has made the Chinese citizens more interested and patient in following their leaders in guiding the gradual political changes in China towards a more democratic government. (Lemoine Francoise. 2000. FDI and Opening ...Show more


China has emerged into economic and industrial hub, the investment friendly policies of the country has accelerated the economic growth of the country. The country has abundant resources, and is rich in terms of trained and skilled labor. The availability of the cheap labor, valuation of Chinese Yuan, and the entire system of the country has captured the attention of international companies, particularly from North America and Canada…
Author : eliza33
Economic growth in China and its impact on American economy essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Economic growth in China and its impact on American economy"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

The Impact Of Economic Growth, Political And Economic Systems On The Internalization Of An Organization
The Impact Of Economic Growth, Political And Economic Systems On The Internalization Of An Organization Globalization, privatization and liberalization have brought huge changes virtually in every areas of human life. Business is one area in which globalization has brought significant changes.
9 pages (2250 words) Essay
China and Taiwan in american foreign policy
The confrontation remained a proxy war during the Korean War in the 1950s and the Vietnamese conflict in the 1960s and 1970s. The break up of the Soviet Union and the demise of communism, except in China, should have paved the way for more amicable foreign relations between the two countries.
5 pages (1250 words) Essay
China. Economic Analysis
Economic Analysis. China: China one of the major stake holders in present day Asia, has revamped its economic structure since the days of socialist era. They have reformed their structures and centralized their economy around a global pattern oriented economy.
7 pages (1750 words) Essay
Alienated to the Far East, there was always the possibility that the sleeping giant would awake and explode upon the world. However, the awakening was slow, but powerful all the same. Secondly, the fact that China would emerge as a strategic partner with the EU is all the more interesting given their roles in the Cold War Era.
19 pages (4750 words) Essay
International Economic Growth
The economies had not undergone industrialization but were still far advanced if compared with their former years. Technological breakthroughs occurred like the invention of telegraph, railroads and steamships. The fall in transportation costs is one of the main reasons that lead to a global economy at the time.
5 pages (1250 words) Essay
The impact of the emergence of China and India on the world economy
It may sound not believable, but the serious threat does exist. India is already on the verge of overtaking Japan in becoming the third largest economy in the world while China occupies second place. Even though India is the home to more people living in poverty than any other country (300 million people live on less than 1 dollar a day), at the closer look, China and India have the potential to become the strongest economies in the world in the nearest future.
8 pages (2000 words) Essay
Taiwan-China Economic Relations
This commercial relationship between Taiwan and China as a result of favourable environment available to investors and business people at both the sides is leading towards an integration of these countries' mutual economic benefits. The ascending trading activities between Taiwan and China are further corroborated by the cultural and social similarities among people at both the sides.
16 pages (4000 words) Essay
Long run economic growth and development
This essay focuses on the interrelationships of particular aspect of economic development with the long-term growth of a country. In order to understand, why some countries are able to develop and grow better than others, it is important to consider the theoretical background of development and determine the drivers of growth for different nations.
11 pages (2750 words) Essay
Economic growth in China and its impact on American economy
ation of Chinese Yuan, and the entire system of the country has captured the attention of international companies, particularly from North America and Canada. After the membership of the World Trade Organization, the developing country has turned into competitive field against
15 pages (3750 words) Essay
The effect of liberation on economic growth of China
It also allows the countries to enjoy the benefit of economies of scale from the large-scale production of the goods they are best at producing. Under global trade arena countries can also buy other things which other nations are best at
32 pages (8000 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Contact Us