The growth forecasts regarding the economy of China reflect a promising future compared to other many world economies. The fluctuating trends show the economy being on the competitive edge since it has continually indicated growth prospects of whichever magnitude. This has attracted many investment options in the country because of the widespread impact on the other growing economies. Many states have been on the look out of the increasing economic activities in China brought by the growing need for bilateral trade. The country’s GDP has been a threat to competing economies like the United States of America since it has been its primary competitor. The principal cause of the unmatched growth has been through some dictatorship in leadership which has made the state of being where it is now.
It is still debatable whether the one belt one road strategy in China can help countries achieve positive economic growth over time based on the economic fluctuations that counties are facing.
The economic outlook and leadership in China
The future of China varies widely in the economic angles based on the different periods of economic booms and recessions. Some viewers are of the idea that the financial move may fail over time due to the various difficulties in the maintenance of the GDP. However, other economic optimists claim that the alarming rate at which the Chinese economy is growing may make it an economic superpower within a short time. The growth prospects over the two decades give some light on making the right judgment concerning the economy of China in the future. This means several aspects which make an economy to grow must be factored before coming up with undeniable facts.
China has been estimated to be the most substantial economic power through many measures in recent years. This is due to the increasingly constant purchasing power than that of the US in the past years. The increasing purchasing power is an indication of reliance on the economy by other economies since many eyes are on it. The marked 25years of economic growth patterns in China have recorded many reforms which are supported by many growth theories and standard economic development. The future GDP growth in China has been attributed by the structural changes which have streamlined the quality and quantity of the labor in the country. As a factor of production, work need to be taken care of because of its one of the contributors to the output approach in the measure of economic growth.
The growth demographics and the social, economic policies in China have shown continuous rise which is evident in the current GDP records. The recognition of talent has made the human resource in the country so productive since they can use the skills, they have to make production so efficient. This move has received continuous government support making the country have a pool of resources which have been useful in making people stable. This has made the growth aspect of the economy to be sure because the labor market has been so ready to make the citizens useful in making the economy to grow. The government makes it a priority to have all citizens to be in a productive activity which may end up reducing the dependency ratio.
The economic reforms in China have been the reason for rapid economic growth. China’s future as an industrial giant has been on the lookout by many world economies because of the competitive nature of the so-called strong nations. However, there are several impediments to this economic growth brought about by some factors which are out of control by the country itself. Among them are the declining government revenue, many non-performing loans and many state-owned enterprises which have huge debts responsibility. These loopholes have been strengthened by the economic enemies to translate to a kind of a war that has fueled continual conflicts among the countries.
There are however some arguments that the past economic growth can even continue to the future because of the predictable growth patterns that are evident. The practical theories the country used for economic growth and trade are still applicable today. This has thrived the country to greater height since it has moved it from a low turn over in matters of business to a level that makes it competitive in the global trade. Trade has been one of the various reasons why this economy remains untouched. The flourishment of international trade between the Chinese economy and other countries has made China a center of excellence in so many fields. For instance, many states have been interested in the manufacturing sector of China because it makes perfect machinery.
This technical competence has been a center of attraction for small and big economies that would wish to borrow from China. This has created substantial economic ties because trade needs the establishment of good relations which improves the way they view each other. This has been one of the reasons why China has become a center of excellence when it comes to the trade industry. The Chinese reforms strategies in the economic outlook match that of other major industrial giants like Korea and Japan. This gives the country big muscles to compete globally. China has employed a method of decomposing the income in the GDP to make the economic growth be measured into labor and other variable factors. The working population in the country are so productive which makes the job so efficient compared to other countries.
The education system in China makes the students to be equipped with practical skills and knowledge that makes the quality and quality of labor to be excellent. When the students are through with their education system, they find opportunities which they directly impact the economy. The reliability of the education sector to transform the economy has made the country to have the strategy of teaching only what is produced in the school system. When this is done, the dependency level reduces exponentially making the economy to grow in the long run.
The surpassing of china’s pa capita income compared to that of the US is a clear indication that the future of China is promising. This has continually transformed the economic outlook in the country as many of the states are now depending on it as a benchmark. This makes the country a center of attraction because it is clear it has some principles which can be used as an economic tool for growth. The overall effect has been a continuous challenge to the issue of economic competition in many countries.
Belt And Road In China, The Opportunity Cost And Risk
The building of China silk road belt has some economic implications due to the risks and prospects that come with such a commercial venture. This is because the belt is going to impact the development agenda of the country due to the economic activities involved in the process. The multinational trade corridors are likely to be opened by the belt because it will open access to many trade countries. The belt is expected to act as an avenue where goods can be moved from and into the state for trading purposes. The economic policy coordination is likely to be brought into reality since the countries will be in a position to sit in a table and discuss matters. Consumer and industrial firms will have the chance to exercise free trade without many restrictions because they will depend on the belt for meeting potential customers and business partners.
It will also act as a facility of connectivity since it will be a standing point of making the trade to happen. The barriers that were acting as an impediment to trade will be a thing of the past since the situation will be sorted. The growth of trade will be strengthened because the existing multilateral cooperation and bilateral ties will be strengthened hence making the people feel free to do business. This will make the global economy to have the potential of growth because the trade mechanisms will facilitate most of the activities.
Despite China and Europe being landlocked countries, the belt will open up a mechanism of ensuring the two countries can encounter one another. The implication of this will be a corridor for major logistics which will make the human resources to be productive in exploiting the available resources. The joy of China will be the center of all these activities which means the economic gains it will receive from the country will be significant.
Additionally, the bridge is likely to shape Chinese engagement with the commercial world because of the interaction that will be facilitated by many trading partners. Since the bridge is still work in progress, the economy will grow since the infrastructural development will be done to promote all the aids to trade. People will get employment opportunities across the globe as the infrastructure develops since its growth need human power to be made a reality. The Chinese products will also gain international markets across all the multinational countries since the area will be open for trade. This move will be boosted all the economies across the globe since opportunities for doing international businesses will open in the long run.
Investment in the belt has boosted trust in the international people for a considerable period. Many countries are therefore able to benefit from this since their tenders are also tabled in the investment portfolio for growth purposes. The need to have one voice in matters of development has united many countries to the point of growing together in all economic aspects. This is because many states have realized that domestic trade alone cannot make them grow. They need some synergy in making their progress notable in the economic angles. The embracing of China’s plan to have the best established is an eye opener to all the world economies to come and enjoy the investment benefits.
The industrial restructuring will be a priority objective of the belt because many of the firms are likely to have an adoption of the best policies due to the international competition as well as employing the foreign workforce. This will be one way of drawing international attention since the entry of many people will being diversification of ideas. Again, the geopolitical role will be enhanced and strengthened since the China government will be accountable to operations of the belt. The economic docket will be fully responsible for the events taking place because the venture has attracted many interested countries.
The industrial oversupply for China which has affected it for a long time will be sorted since these products will be supplied to other countries. The domestic supply in the country is always higher than the demand hence having a huge surplus. This will be taken into account when countries come on board who need such products. China’s global policy will, therefore, be supported because an avenue will be created where the state can interact with it is business counterparts on business grounds. The products that the countries offer will be tabled and made available to the possible market countries. This will be an added advantage to China since it will expand its market base as well as making it known to global nations in the long run.
An implication of China’s influence on Africa
Because of its economic might, the impact of China to Africa has been felt through several avenues. As it’s in the public knowledge, the resource utilization in Africa is not so efficient. This has made most of the countries to be underdeveloped due to lack of growth factors. Use of traditional technology to do things as well as lack of capital have been the main barriers to development in Africa. Since many western countries are already developed, they can easily take advantage of pf this situation by bringing options that favor them.
For instance, China has been at the forefront in providing some assistance to Africa to indirectly know the secret behind their lack of development. This has happened through some financial, diplomatic and military aid that they offer to the African countries. This has been a threat to the US since they are also interested in making Africa their colonization strategy. The overall impact has been the development of a fight between the two states since each one of them have an agenda in Africa. The united states of America have developed a strategy of helping Africa and then make use of their resources as an appreciation for what they have done for them. They have called China to negotiate on how they can cooperate in this move.
The political control in China has made it an economic giant for a considerable period. The dictatorship form of doing business has also made it stand out among many other countries which have to copy much from it. The belt in the state has positive economic implication because it has made China an industrial giant, in the long run, It has made the geopolitical responsibilities to be strengthened. This is because it has much influence and hence it should be accountable to many countries it is under.
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