Global Trends Impact in China Essay Example | Topics and Well Written Essays - 750 words

Global Trends Impact in China - Essay Example Even though, the immense popularity gained by the ‘China Bashing’ in the global media, there is very little existing analytical work on the overall economic impact of China. The size of China is a key issue which is very debatable. The economic size is an ambitious thing to quantify. â€Å"It is well known that market exchange rates do not properly weight differences in living costs, may fluctuate by large amounts, and may be subject to manipulation by governments† (Robertson, 2) The GDP of China according to the exchange rates is half the size of the United States. Therefore, if looking closely, China has awfully large range of 50% to 125% of the GDP of the United States. â€Å"China is projected to be the largest economic power with almost a fifth of world gross domestic product (GDP), and India will continue to rise. The two Asian giants will have by far the biggest middle classes in the world (23 and 18 per cent of global middle class consumption in 2030, respectively).† (Global trends and Chinas future|Comment|chinadaily.com.cn) Due to the introduction of the economic reforms, there had been a boost and the economy of China gradually grew faster than the pre reform period. From 1953 to 1978, real annual GDP was estimated at 6.7% according to the Chinese government. Economist Agnus Maddison estimated China’s average annual real GDP during this period at 4.4%. However during the leadership of Mao Zedong (Chairman), the China economy faced economic downfalls. China was able to double the size of its economy since 1979 as its average real GDP increased to 10%. â€Å"The global economic slowdown, which began in 2008, impacted the Chinese economy. China’s real GDP growth fell from 14.2% in 2007 to 9.6% in 2008, and slowed to 9.2% in 2009. In response, the Chinese government implemented a large economic stimulus package and an expansive monetary policy.† (Morrison, 3) Due to these actions and measures taken, the domestic saving and consumption boosted and