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Economy Of China According To Essay

Exports are also down significantly, yet despite these changes, the Chinese economy appears to be "independent and strong enough to not only cope with the global economic crisis but also to establish itself" as a major world economic powerhouse ("China Economy," 2009, Internet). One of China's greatest economic strengths is based on foreign direct investment, for the World Bank estimates that around $80 billion U.S. dollars are invested in China on a yearly basis. However, one of its most important weaknesses is the existence of corruption at the local level, a situation which the Chinese government has attempted to eliminate through a slow and long-drawn out process. Nonetheless, economists predict that China, "via a sustained rate of growth will enable it to surpass the U.S." To become the world's largest and most powerful economy sometime in the early years of the 21st century ("China Economy," 2009, Internet).

As to unemployment and inflation, according to the Chinese National Bureau of Statistics, the total number of urban unemployed in 2008 stood as around 8.3 million with the country's total unemployment rate at approximately 4.0%. Between 2004 and 2007, the unemployment rate decreased from about 10% to 4.2%, an indication of China's rapid economic growth. With inflation,...

Between 2003 and 2006, the rate of inflation plummeted to about 1.8%, far lower than the U.S. And other developed nations ("China Economy," 2009, Internet).
Within the last fifty years or so, China's business cycle has shifted greatly, due to many reforms initiated by the Chinese government which has always attempted to grant "more independence to business enterprises owned by the state government." The government has also led the way in creating many privately-held businesses within the service sector and in heavy to light industries. Most importantly, China's banking system was diversified in the 1980's as a way of helping Chinese stock markets "to develop and grow as economic reforms took hold" ("China Economy," 2009, Internet).

In the 1970's and 1980's, the Chinese economy grew at a fantastic rate as a result of the many reforms initiated by Mao Tse-Tung and his Communist government, one being opening the economy to global trade and direct foreign investment. Thus, the business cycles within China have for the most part depended upon reforms, the export and import of goods from all over the globe and the country's continuing efforts to phase in other changes in order…

Sources used in this document:
REFERENCES

"China Economy." (2009). EconomyWatch. Internet. Accessed June 23, 2009 from http://www.economywatch.com/world_economy/china.

Huntington, Samuel P. (1996). The Clash of Civilizations and the Remaking of World

Order. New York: Touchstone Books (Simon & Schuster).
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