In recent years, China appeared to realize that dollar carry trade might eventually play an important role in helping the growth of its economy. It has done that and far exceeded their expectations. It shows no signs of backing down. Chinese products are now flooding every major market around the world. The China trade market has shown an unprecedented growth.
However, due to the wide-spread global economic recession. China is experiencing a significant decline in the export of various good. Though this is expected to be for a short time, it can not be known for sure. Since December, 2009, however China importing has shown growth. This has given rise to the hope of recovery from the economic crisis which much of the world is feeling. China imports have grown by a margin of 20% since January 2010 alone. A lot of world economists see China’s increases as a sign toward the over all economy of the world picking up again in the near future
This can be put into perspective by understanding that the Chinese economy is one of the 3 largest economy in the world. The increased China imports are helping to strengthen the economy of the country to a greater degree, and are enhancing the position of China as a global economic power in the world of trade.
China has established itself as one of the major players in international economy in just a few years. In the last quarter of a century, China has had a growth rate of its foreign trade that has been far greater than the rate at which it’s GDP has grown. China has been successful in all types of products it has been exporting. It has experienced a growth in exporting its consumer items, toys, and even industrial goods. China keeps continuing and reaping success along its way.
Since other exporters are still struggling in the aftermath of economic recession, the Chinese government has promised to stabilize the Yuan to help. China imports have shows a great impact to the world markets. This decision has undoubtedly lead to their success. The rise and effect of many stock prices may also be due to the recent rise in the Chinese imports
Since, China is having such a great impact on the stock markets around the world. Speculation has been made that in the not so distant future, China will become an economic superpower. Asian economies that thrive by exporting the same types of products are threatened by the emerging of China as a tough competitor.
The Chinese government has developed even more new policies to increase productivity with emphasis being laid on the development of foreign trade for economic growth. The government plans to come up with ever better policies and procedures that will further enhance exports and establish a much more stable economy. It’s clear As China proceeds on its path of progress, it will continue to reach its economic growth goals. Though other countries have low labor costs, China is a stable country with a very stable government. The Chinese government has the ability to anticipate the future, plan ahead and execute future plans while saving enough in reserve to weather the past economic world recession.