China Declining Economy Case Study
China’s Declining Economy
Background on Chinese Economy
China has always been in the leading spot for social and economic achievements. Historically, they have been known to be open traders. Even on prehistoric times, there have been accounts proving that the Chinese often visit foreign lands to trade their goods. After the Second World War and upon the installation of a new communist government, all the profits generated by business men were managed by the government. Although a small portion of the government budget was used to modernize some industries, the gross national product of the country was unable to rise because the country remained a closed economic system. Despite the efforts of the government, their industry and technology fell …show more content…
Not only during the past few decades, but also for centuries before that, their perseverance in staying on the spot has been a model of the idea of economic development itself. Last year, 2015, China has been predicted to claim back the title it held for so long, being the world’s largest economic power, displacing the previous title holder, the United States. According to the World Bank’s International Comparison Program, China has overtaken the United States in terms of purchasing-power parities, a comparison of income between two countries (Giles, …show more content…
Its GDP-per-capita remains small. On the other hand, there has been an ongoing transition from a labor and manufacture centralized market into a consumption driven economy, just like in the United States. Chinese companies are looking forward to take advantage of their growing middle-class sector to which they can offer products that bring about life-style change. These people, in contrast to their previous generations, are more willing to spend the money that might help the circulation of currency. Moreover, despite the country’s unwillingness, China remains a lucrative asset for foreign investors. Emerging technologies such as those based on the internet are having a hard time penetrating the country, but has not stopped their efforts in doing so. Facebook and Google are currently non-operative in the country, but through various partnerships, these media giants are currently trying to build connections with the
Background on Chinese Economy
China has always been in the leading spot for social and economic achievements. Historically, they have been known to be open traders. Even on prehistoric times, there have been accounts proving that the Chinese often visit foreign lands to trade their goods. After the Second World War and upon the installation of a new communist government, all the profits generated by business men were managed by the government. Although a small portion of the government budget was used to modernize some industries, the gross national product of the country was unable to rise because the country remained a closed economic system. Despite the efforts of the government, their industry and technology fell …show more content…
Not only during the past few decades, but also for centuries before that, their perseverance in staying on the spot has been a model of the idea of economic development itself. Last year, 2015, China has been predicted to claim back the title it held for so long, being the world’s largest economic power, displacing the previous title holder, the United States. According to the World Bank’s International Comparison Program, China has overtaken the United States in terms of purchasing-power parities, a comparison of income between two countries (Giles, …show more content…
Its GDP-per-capita remains small. On the other hand, there has been an ongoing transition from a labor and manufacture centralized market into a consumption driven economy, just like in the United States. Chinese companies are looking forward to take advantage of their growing middle-class sector to which they can offer products that bring about life-style change. These people, in contrast to their previous generations, are more willing to spend the money that might help the circulation of currency. Moreover, despite the country’s unwillingness, China remains a lucrative asset for foreign investors. Emerging technologies such as those based on the internet are having a hard time penetrating the country, but has not stopped their efforts in doing so. Facebook and Google are currently non-operative in the country, but through various partnerships, these media giants are currently trying to build connections with the