ECON 301
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ECON 301
The Current Chinese Economy
Before initiating the economic reforms and trade liberalization, china had maintained policies that kept the country very poor. It was centrally controlled, vastly efficient, and relatively isolated from the global economy. Today, china is an upper-middle-income country which is taken as the world’s second-largest economy. However, its per capita income is still about a quarter of high-income countries. About 373 million Chinese live below the upper-middle-income poverty line of US $5.50 a day (Morrison, 2013). Besides, China is termed to have the world’s fastest-growing major economy, with growth rates averaging 10% over 30 years. As of 2019, total employment amounted to 63%, as accounted for by China’s public sector (Morrison, 2013). Also, referring to the 2020 report, china was the first country to announce a return to economic growth since the outbreak of the COVID 19 pandemic. It thus reflected to be among the strategic nations with a definite plan of control of activities based on trade and economic growth.
Where I Think It Shall Go from Here
Based on the given reference of china’s economic progress, I think that its economy shall be the best in the next few decades. The statement’s truth is granted by the 10% economic growth rate, which has not affected financial interruptions like pandemics (Morrison, 2013). Therefore, the Chinese economy can be the best compared to the one from the other nations.
Changes The US Needs to Make in Its Economic Relationship with China
Among the essential changes that the US should make in its economic relationship with China can be on admission, which serves as a template for several other transition economies seeking WTO membership. Such membership has a significant impact on the economy, especially during an economic recession. Further, some members usually disappoint others in such admission, especially when they take quite a long time to complete the process. Therefore, the US has to contemplate such changes to find a diverse economic relationship with China. Besides, the US needs to change the competition level and competition for it to remain a superpower in financial growth management. Another change is based on the relationship between the trading commodities and other products exchanged by the two nations. With such an amendment, the nation’s economy shall be able to grow independently despite the identified product disputes.
References
Morrison, W. M. (2013). China’s economic rise: history, trends, challenges, and implications for the United States (pp. 20-22). Washington, DC: Congressional research service.