China is a nation located in East Asia. It is one of the most populated nations in the world with a population of about 1.5 billion. Despite this, China is known for its ancient civilization. In fact, China was recently rated the world’s fastest growing economy with regard to the high percentage of the world’s total exports. The fast growth in China’s economy is attributable to the expedient policy implementation by the Chinese government.
In addition to this, China has an effective leadership that spearheads all sectors within its economy. A market-oriented economy is one of the recent adoptions of China’s economic strategies, which has indeed quickened economic growth. As such, China adopted measures with the aim of coming up with policies aimed at reforming the previously closed economy. This paper is therefore an in-depth analysis of the reforms made by China that have made it outdo the United States of America in terms of economic growth.
China’s economic growth came as a surprise to many. A macroeconomic analysis of China in the last century indicated a low income per capita. However, the pace at which China’s economy has grown in the recent past is something to question. Some analysts have even argued that China’s economic growth has been overrated.
The World Bank statistics have indicated a ten percent annual growth rate in China’s GDP. The statistics further indicate that the growth is sustainable given the increase of China’s fixed investments in overseas markets. Unlike most of the other nations, China has made huge investments in physical capital. Thus, China boasts of a high flow of net income from foreign nations.
This is evident because of the good investment environment that China has created with its trading partners. The investment environment was among the reforms that were initiated by the Chinese government. In the reforms, China implemented policies that provided efficient policies for trading with foreign nations. This is one of the methods used by China to capture most of the trading partners of the United States.
Despite having low production from its agricultural sector, China has developed bilateral relations with other nations that have raw materials for its industries. This has significantly enhanced industrial growth in China.
China also boasts of a high growth in human capital, which caters for the high demand for human capital in the industries. Thus, unlike other nations, China does not have to import human resource. China has also been keen to make reforms in its public sector as one way of making sure that national resources are effectively governed.
This is because the public sector plays key roles in the economic, political, and social sectors of a nation. Reforms of the public sector in China began long ago after the Second World War. The reforms initiated good governance thus improving service provision in China’s society. Through accountability, China has been able to improve its service provision to the public. This has had a positive impact on the economy because the people are motivated to work harder.
Finally yet importantly, China has made Japan one of its important trading partners given the fact that is developed in terms of technology. This relationship is bound to be of benefit to China by helping it improve the quality of itsr electronics, which have been disregarded on grounds of poor quality and imitation.