China's Role

Category: Globalization

China’s economy has changed within the last 25 years to be a more market-oriented economy, whose private sector is growing. Economic reforms began in the 1970s after Mao Zedong’s reign ended. The reforms included gradual liberalization, decentralization, diversification, and expansion of foreign trade. The reforms have contributed to a tenfold increase in GDP, of which the growth rate is 11.4% (GDP purchasing power parity = $7.043 billion, GDP exchange rate = $2.879 billion) China currently holds a 4.7% consumer inflation rate. With a population of over 1.3 billion, 803.3 million compose China’s labor force: 3% agricultural, 25% industry, and 39.5% services. Industries include mining and ore processing to footwear and telecommunications equipment.
China has established itself as one of the key players in today’s global economy. Because China produces cheap, manufactured goods, other countries are able to purchase products for pennies and thus increasing the standard of living for its own citizens and also by doing this China is creating jobs. Large Western corporations outsource their factory production processes to plants in China, paying them cheap wages and marking up the price for sale. This role has allowed for these multinational corporations to grow and make large profits. After opening up the country to greater amount of foreign trade, China has also become part of the globalized trade network.


Elaine N. and Isabel S.