The Impact of China's Modern Foreign Policies on Economic Growth
Recent Chinese economic policies have shot the country into the world
economy at full speed. As testimony of this, China's gross domestic product has
risen to seventh in the world, and its economy is growing at over nine percent
per year (econ-gen 1). Starting in 1979, the Chinese have implemented numerous
economic and political tactics to open the Chinese marketplace to the rest of
the world. Just a few areas China's government is addressing are agricultural
technology, the medical market, and infrastructures, like telecommunications,
transportation and the construction industry. Chinese reform measures even
anticipated the rush of foreign investment by opening newly expanded industries
to out-of-country investors. Effects of this sudden change in economic strategy
by a world power can be felt by practically every nation of the globe involved
in international trade. The change in the amount of imports and exports to and
from China will increase the demand on countless markets, from automobile, to
petrochemical, to pharmaceuticals, and optical fiber. Also, with all the
foreign investment China is receiving, the socialistic republic will only grow
more and more interdependent upon the world economy. However, the impressive
growth rate of China's economy is not without its shortcomings. Problems such
as inflation and inefficient state-owned enterprises plague the rise of the
Chinese economy.
The main goal for China's modern foreign policies is the development of
the Chinese infrastructure. The significance of improved communication and
transportation cannot be over-stressed. Economically, enhanced means of
communication and transportation allows more expedient supply and demand
scheduling. Two of the latest Chinese reform measures to aid in the development
of the country are the Provisional Regulations on Direction Guide to Foreign
Investment and the Catalogue Guiding Foreign investment in China. Both these
policies place specific industries including telecommunications, machinery, and
electronics on top priority. Funding for these projects come from foreign
investments and appropriations from the Chinese government in the form of grant
financing, and legislative or administrative support.
Yet another example of the Chinese emphasis on industrial b...
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...pressive economic figures are through a thorough
renovation of Chinese trade policies. Reform measures in the country range from
reduced trade barriers and technical contracts for agriculture, to
infrastructure investment policies and improved standards for pharmaceutical
products. However, stemming from China's economic growth are dilemmas such as
inflation and uneven development of the country.
On a planetary scale, the effects of China's Open-Door policies are best
understood through graphical representation. One should graph the supply of Chinese goods and services and demand for Chinese products by other countries. As Chinese policies are placed in effect the supply curve shifts to the right because of improved quality standards and higher production capabilities. Open-Door policies also indirectly increase the demand for Chinese goods and services due increased Chinese competitiveness on foreign markets.
Works Cited
http://www.wissago.uwex.edu/test/joe/1992fall/intl2.html.
http://www.china-embassy.org/scitech/med.htm.
http://www.chinesebusinessworld.com/business/bgeneral/econ-gen.html.
http://www.dfait-maeci.gc.ca/english/geo/asia/china-tr.htm.
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democracy in 1990. They have a high level of foreign trade and a reputation for strong
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China has also expanded their trading industries with countries such as South Korea, Japan, Taiwan, ASEAN, India, Russia and Hong Kong. This has not satisfied the Chinese greed for income as they also export and import goods to American countries, name...
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