This paper aims to discuss China’s role as a major player in the global economy and the impact China will continue to have on the global economy. This paper will offer a summary of two articles entitled, China Pushes for Bigger Role in Reshaping the World Economy and Singapore sees India, China Role Growing, which discusses China’s transformation into a dynamic private sector-led economy and its integration into the global economy. I will also offer my opinion on the future prospects of China’s rapid growing economy and trade expansion.
China’s Role in the World Economy Over the past decades, the competitiveness of the United States economy has been outstanding because of its …show more content…
Its integration into the international economic order poses major difficulties for the rest of the world. These problems include bringing China's mixed market/centrally planned economy into the GATT, adapting to competition from labor-intensive Chinese exports, encouraging further market-oriented reform, and accommodating its demand for international capital. But China's participation in the global economy also offers important opportunities for trade, investment, and international cooperation to promote world prosperity and stability. The average Chinese GDP is still very low, meaning that it is a country with a lot of poverty. Since China has limited natural resources, the incremental increase in demand for these resources will have to come mainly from imports. Demand for energy and for certain other resources will thus grow very rapidly and China will have to expend large amounts of foreign exchange on their purchase, but China will have the foreign exchange required. And it is also clear that for the developed world, we have to react intelligently and strategically to what China is doing, accepting its aspirations, but also being aware of our own national self interest, and being clear about the ways we can work together. China is a manufacture based economy and is also graduating 350,000 engineers each year, six to