• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

In this case study, I will be doing research on how is Chinas economy growing so crazy, and how it affects the world as well as China.

Free essay example:

Andy Yeung

China: Economic

image00.pngimage01.png

Abstract:

        In this case study, I will be doing research on how is China’s economy growing so crazy, and how it affects the world as well as China. You will also see cause their economy is growing so fast and what are the challenges they are facing right now and the future.

Introduction:

        The Republic of China’ has overtaken Japan as world’s second largest economy, after United States, Japan had held the 2nd position since 1968. In 2016 or earlier, International Monetary Fund (IMF) claims China’s economy surpassing US, the era of America economy leadership will be over. It’s average grow rate is about 10% for pass 30 years, making them as the world’s fastest growing economy. China has also climbed to the world’s largest exporter and second largest importer in the world.  China has considerable economic weaknesses like low income levels, resource depletion and high unemployment, whereas the U.S. has comparable strengths and is poised to remain a global leader:

Why is their economy growing so fast?

The reason why their economy is growing dramatically, we will have to start from 1978, when the government executed a bunch of strategies for economy reform. These programs are including, encouraged rural enterprises, private businesses, liberalized foreign trade, investment, less control over prices, invested in industrial production, educate their workforce. Their economy had an annual growth of 6% initially, and peak of 17 percent, plus every capital income was quadruple in last 15 years. In 1997, some experts had already predicted that the China economy would sure be bigger than the US in less than 20 years. Here is IMF research team conclusion: New factories, manufacturing machines, communication systems and the amount of Chinese workers, increase in productivity were the factors that putting them as one of the strongest economy country. image02.jpg

Automobile Industry

        China was rank third in the automobile industry by 2006 after Japan and US. During the reform, their automotive productions were less than 14000 yearly. Guess what? By 2002 their production jumped all the way up to 3.25 million! And 2009, it reached to 14 million. In 2009, China passed the States to become number 1 car maker worldwide. Domestic sales stayed with production, in 2006 8 million of cars were sold, which includes 5 million passenger cars and 2 million of commercial cars which shows how low price they sold their cars. The vehicles industry has been so successful in China so they begin to target exporting body parts worldwide in 1999.China has made a big step planning to get involved into image03.pngautomobile export business in 2005. In 2004, 15 major oversees automotive manufacturer plants in China. By 2003 China exports cost of 5 billion with unit of 80000 vehicles and parts, 174000 units in 2005 and 350000 units in 2006. Their goal is to reach at least of 80 billion US dollars by 2010. image04.png

Natural Resources

Coal:

Coal is one of the most important natural resources for China, the most conserves mineral resources are considered to be coal and iron ore. Although they can be found in nearly most of the provinces, almost all of them are located in the northern part of China. A lot of good quality coals like bituminous coal are mostly reserved in China, Anthracite coals also present in some areas but its quite rare overall, that’s mostly found in Rocky Mountain. Coal helps the bulk of China’s energy consumption (75% in 2006), which led them again the world’s largest producer/consumer of coal. China usage of coal will be increasing dramatically as their economy continues to rise in absolute terms. If China keep increasingly rely on coal as a power consumption, it is going to put them becoming largest acid- rain causing sulfur dioxide and greenhouse gases.

Oil and gas:

China oil resources are also majorly located in north area provinces; types of oil include Oil shale and light oil. They uses up most of their oil output but doesn’t export any crude oil products, they are starting to develop oil deposits in China Seas and other oceans. Amount of natural gas reserves is unknown because they have only done a little exploration job on natural gases, Szechuan province accounts the most known natural gas reserves and production.

Hydroelectric resources

China has a great hydroelectric production due to their great river network and the mountainous terrain. A lot of the hydroelectric stations are located in the southwest of the country where low amount of coals are found but demand for energy is high. The potential of energy in north is small but the first hydroelectricity power station was built there by the Japanese during the occupation. In the winter, they have lower amount of rainfall, therefore, the stations are usually run less than the normal capacity, on other hand, flood always occur in the summer.  

What are the challenges that China is facing?

High Inflation:

Inflation is definitely one of the most challenges globally, but it is definitely the worse disaster for China that other countries. For clothes, the costs jumped 1.5% in April, it is the biggest up since 1997. For non-food, it didn’t have that much of different but it was still about 3%. For food, the price has inflated 11% on April which is 2 times the CPI.image05.png

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

(?)
Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Related GCSE Business Studies Skills and Knowledge Essays

See our best essays

Related GCSE Economy & Economics essays

  1. Why has Nucor performed so well in the past?

    Nucor was the low cost leader in the market. With this unique combination of resources and capabilities, Nucor's distinctive competencies enabled high levels of innovation and efficiency in Mini-Mill (MM)

  2. Causes of the Great Depression

    In 1929 the world's most prosperous nation was the United States. But despite the confidence in the United States and the apparent economic well-being in other countries, the world economy was in an unhealthy state. One by one, the pillars of the prewar economic system-multilateral trade, the gold standard, and the interchangeability of currencies-were crumbling.

  1. Japan - the second largest market economy in the World?

    and relatively lack the self-responsibility and self-support (7). When there had problem, business leaders have strongly asked for the governmental stimulus measures without taking any drastic measure for slimming down and challenging new frontier. The Japanese business leaders are less enthusiastic in applying information system in the 1990s.

  2. Case Study: The Home Depot

    Then in terms of their customer service, they posses high skilled and helpful personnel. They give professional clinics and demonstrations of methods and techniques of performing a job safely and efficiently. Their personnel is in some stores 24 hours a day available.

  1. Chinese economy sets for soft landing in 2005.

    Corporations should concentrate on raising the quality of its products and work force, rather than focus mainly on consuming resources, Qin argued. While agreeing that the development of China has been remarkable, Jeffrey E. Garten, Dean of the Yale School of Management, Yale University, sounded a note of caution.

  2. Has Japan Paid The Price For Growing Too Fast

    was 47.8 percent. Japan's Land and natural resources Land The surface area of Japan totals 380,000 square kilometres, a figure equivalent to 0.3 percent of the global land mass. Mountains and hilly terrain account for 72.8 percent of the nation's land area, plateau 11.0 percent, lowlands 13.8 percent, and inland bodies of water 2.4 percent.

  1. The Quest for Optimal Asset Allocation Strategies in Integrating Europe.

    Until recently, most of the literature found an overall dominance of country effects over industry and common market effects. For example, Beckers et al (1992, 1998) have shown that differences in the industrial makeup of countries only plays a minor role in explaining country correlations.

  2. Social reform in China since 1949.

    Under Mao, there was little food left for the peasants, and due to their regimented lives in the communes they had little incentive to work harder. But once the idea of profits and the thought of growing more than enough food for the family, no longer going hungry, had been laid out by Deng, bumper harvests followed and markets prospered.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work