Global Economy and China

China has managed to accomplish a persistent economic growth in more than three decades. The rise of China being considered as the second largest economy around the globe is a good sign that it will soon be on top. Even if China is still in the position of developing country, they have significant involvement in business activity and great impact in global economy. Economic adjustment has taken the place of communism that leads to many business venture and promote economic growth. However, some issues become apparent like pollution, discrimination, poverty in rural areas and minimum productivity in several sectors as well little domestic consumption. In addition, it also formed extremely large degree of debt in the stock exchange which creates boiling point that seems like about to explode. On the other hand, the decline in economic activity because of oil prices has wide-ranging effects in all parts of the world. It made the oil companies to remove many business operations. It explains that stock markets have heavily shed billions of monetary worth since the beginning of 2016. The setback of China in economy is being endured by other economies since China is a large consumer of commodities. The decline in the largest operator of power is analyzing on oil prices. Last year, the monetary value of all goods and services produced by China increased by 6.9 percent and it is the lowest speed for twenty five years. In some economic statistics of China, it emphasized their giant occupation of restoring the balance of economy away from dependency on its wide engineering sector and exports to greater varieties. The sudden fall of China’s economy would have the substantial influence for Asian countries as well as to monetary value of all goods and services produced which rely on demand from China for essential business commodities. There is a weak conviction among investors in Beijing’s potential to cope with economic change as a result of evidently unproductive action to improve the situation and also with unclear memorandum from policy makers. However, economic experts said that investors should relax and continue the activity since the basic economic statistics is still strong and market will overturn.

Jingqian Zhang