25 Jun Chinese Economy of a Giant: Country’s amazing GDP of $15.66 Trillion
Chinese economy is the biggest in the world, they were the economic giant that dominate the world’s cash flow. Face it, everything is made in China, from technology, machinery, agriculture, and maladies. This article will try to explain how can they grow their economy so fast from the rest of the world, an how can Chinese economy stay at the top.
Economic policy made by Chinese Comminist Party (CCP) is meant to make use of Chinese demography to brush their economic potential and enhance Chinese economy further. The government provide support to individuals and organizations alike, which further increase their economic possibility. For example, they have a policy to attract managerial-level professionals, Chinese born abroad, entrepreneurs, fresh graduates of foreign origin and gave them permanent citizenship, while they also accept foreign investment in technology.
This policy is helping Chinese businesses who are keen on hiring overseas workers as it helps them to build stronger connection between international markets and Chinese companies, China is becoming a global think-tank for business ideas, perhaps that is why everything is made in China. These policy-making is a part of China’s three-step development strategy which started from a way back in 1980 aimed to quadruple its Gross National Product (GDP) by the end of the 20th century, successful execution of this strategy is a big deal for Chinese economy.
China is attracting talent and businesses from the world, the more diversity it gets, the more idea is exchanged among Chinese youth, the stimulant of Chinese economy. Speaking of diversity of ideas, the government also make sure the exchange of thoughts and ideas between the government and non-government bodies circulate smoothly. In the US, members of think tanks often engages directly in government’s agenda, while retired government officials joins a think tank. China adopts that method, but has a little difference.
The Chinese version only allows former government officials to join think tanks, but can’t be the opposite, think tank members aren’t allowed to take part in CCP’s agenda in any kinds. However, it has changed in 2016 as President Xi Jinping said in his speech that Chinese government is ready to recruit CCP members from the think tank community.
Foreign Direct Investment and Global Cooperation
The CCP has now ease up on the regulations for Foreign Direct Investment (FDI) and global partnerships, making it an attractive venue for business. Regardless of being a communist party, CCP welcomed compassionate capitalism with open arms. Emphasize a little on capitalism and changing the rules of business globally. Like we mentioned above, they are ensuring that they attract enough talent and ideas from the globe and at the same time build new opportunities for their own from FDI.
If you want to know more about Foreign Direct Investment and how it would benefit a country, you can read: 4 ways that Foreign Direct Investment can help to reduce poverty
Citizen’s Quality of Life
Chinese economy still dependent on their citizens. So therefore, China is not just focusing on rapid development but it’s also keen on improving the quality of life of the citizens, while countering issues such as wealth gap and pollution, so the citizens can work the best they can. President Xi Jinping directed the global corporations operating in China to work on employee’s welfare and ensure better living standards for them. From that point, every Starbucks that operate in China provides health insurance that covers the employee and also their families.
Chinese Economy Post-COVID
You might think that Chinese economy might plummeted after the coronavirus outbreak, surprisingly that wasn’t the case. China’s economy is bouncing back hard, and expanding even faster than it did before the pandemic. The National Statistics Bureau said that its GDP rose 6.5% during the fourth quarter of 2020, exceeding the 6% milestone at the end of 2019, before the start of the pandemic, setting a new highscore of $15 trillion GDP. President Xi Jinping praise strict lockdown measures and an all-hands mobilization of medical workers in his speech.
Chinese economy only jumped into negative territory once, during the first quarter of 2020, when authorities locked down Hubei Province and its capital, Wuhan, and enforced softer lockdown measures around the country. As other countries fell into crisis, Chinese sectors such as construction, heavy industry and export manufacturing were jump-starting their operations by the late spring of 2020. By the end of 2020, Chinese officials said exports hit an all-time high of $2.6 trillion, despite a bitter trade war with President Trump.
However, this amazing growth took great sacrifice, method in which China wished to stay away from, debt-fueled spending on infrastructure and a reliance on dirty heavy industries, including state-owned coal and steel production. Economic activity grew, and the unemployment was brought down, but many other indexes performed very badly, so said professor of finance at Peking University in Beijing, Michael Pettis. Many Chinese left a shower of complaints about the uneven recovery, they don’t feel any richer they say.
5 reasons why China is growing so fast, by Arpit Mishra, 2nd November 2017
China’s economy is growing faster now than before the coronavirus pandemic, by Gerry Shih, 19th January 2021