Introduction
China and India are two countries in Asia separated by the Himalayan Mountain. Both countries are growing rapidly in terms of economy. They are becoming both locally and internationally important in the economy of the world and are affecting globalization to the greatest extent.
Both countries, China and India, have experienced this growth because of good political leadership, security and investment in industrialization. The citizens of these two countries are engaged in intensive business throughout the world and this is why they are in a good position to control the world economy. China and India relate even in the military sector.
The current partnership between Asian countries India and China has a great impact on the world economy. These are the largest emerging economies that will set the pace of the global economy. This essay will discuss the impact of India and China power at the international trade system. The strategy and the impacts that both countries have at the local and international levels will be examined.
India
India is in the process of gaining great power at the international market. This is because of its diversity in ethics and a strong economic system. The growth of India was for the first time noted when New Delhi signed a nuclear pact with President George W. Bush in July 2005. India is now growing rapidly in the global balance of power. This is a sign that it will be able to control some sectors in the global economy (Foreign Affairs, 2011, p. 1).
China
China is third largest country after Russia and Canada and it has the highest population of 1.3 billion. It has a strong military force with nuclear weapons. Economically it is the fourth largest trading country in the world.
It has registered a rapid growth since 1978. In 1997 it rose to the tenth position in the world on terms of economic development. This growth is a clear indication that it can shoot to the top position (Dellios, 2005, p. 1).
China has a great planning system that strategizes to give the nation strength to exploit many opportunities in the global market.
The leadership in China considers foreign nations as important and encourages carrying out of business with other countries.
China is currently growing at a slightly higher rate of 1% more than India which is growing at a rate of 9% per annum (Taipei Times, 2011, p. 1), this is an outstanding growth rate: “As in the new 21st century finally dawned, it was China, rather than the pacific that was catching the attention; the future was pointing to China, a global power shift” (Scott, n.d., p. 101).
This was after a partnership with USA. The economic planning in China has been impressive and a critical turning point in the world’s economy (Scott, n.d., p. 101); the 21st Century is said to belong to the Chinese.
India China Economy
There has been an increased trade between India and China in the recent years which was not well established some years back.
Today both countries are beneficiaries of this trade: “In 2004, India’s total trade to China crossed US $13.6 billion, with Indian exports to China touching $ 7677.43 million and imports from china at US $ 5926.67 million” (Stanley, n.d., p. 1).
These relationships between these two countries were made in 1950: “India was the second country to establish diplomatic relations with China among the non socialist countries” (Stanley, n.d., p. 1). India and China agreed to work together for the benefit of the two countries (Stanley, n.d., p. 1).
Currently the effect that these two countries have on the global market cannot be denied
The global business revolution that has been unfolding in India and China over the past 15 years is currently also having, and will continue to have a major impact on the economies of the US, the EU, and other parts of Western Europe, Africa, Latin America and South Asia over the next two to five decades; albeit in varying degrees. (Peters, n.d., p. 1)
In spite of the decline in exports and major losses of Chinese caused by lower exports to the US and bank losses, China’s economy has not been threatened by these factors. The government has strategized to invest in key areas of education, health and infrastructure.
China’s economic status is mostly dependent on productivity rather than on exports. Thus the greatest effects of their economy are within and cannot fall because of other countries. It is even seen that it is other countries that depend on China compared to their dependence on other countries (Peters, n.d., p. 2).
However, China has a very high population. Many people earn less than two US dollars per day. From research it is estimated that about 25% graduates in one year do not get employed because of lack of jobs. This has been as a result of decreased demand for exports.
Accumulation of many jobless people in the society including the educated ones is a threat to security in the country. There is a need for the country to have policies to address this issue. Majority of those in rural areas also live in poverty (Peters, n.d., p. 3).
Though both China and India are experiencing growth in their economy, the gap between the rich and the poor is widening day after day.
There is urgent need to address the problem by introducing rules and regulations to govern the people so as to have resources, jobs and wealth distributed equally among the citizens. This is because as long as a country grows economically, it is the social and political stability that fuels it (Peters, n.d., p. 4).
The second threat to the economy of China is education. China has greatest education system but the system fails to train on skills.
This decreases their efficiency in exportation. While India has a good education system, it has a very huge number of illiterate people. In both countries there is also a significant difference in the number of educated males and females.
Most females have been left out of education and are illiterate. Another major problem is the brain drain, whereby the most learned scientists leaves the country to work in US (Peters, n.d., p. 6).
Sustainable development can only be achieved by investing in higher education. This will enhance productivity which in turn will bring a higher demand of labor. Failure to do this will stop them from having great international power that has been brought by their rapid economic growth.
Conclusion
China and India have flourished economically in the 21st Century. Most of the growth has come as a result of industrialization and political stability in the countries. The two countries have strategized and acquired markets in many foreign countries and this has led them to earn a lot of foreign exchange.
By their partnership they are able to have a greater influence on the global market. However, the two countries are under some threats in social political sectors. To have a sustainable development the two countries must work to bridge the gap between the rich and poor and also invest in education without discriminating between genders.
References
Dellios, A. (2005) International Relations. Web.
Foreign Affairs. (2011) Foreign Affairs. Web.
Peters, B. Adjustments to the Global Economic Crisis by India and China. Web.
Scott, F. The 21stCentury as whose century? Web.
Stanley, T. Economy Watch. Web.
Taipei Times. (2011) International Relations. Web.