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China in the World Economy

Author

Listed:
  • Hany H. MAKHLOUF

    (University of the District of Columbia, USA.)

Abstract

After several decades of widely admired success in raising its gross national product (GNP) and becoming the world’s second largest economy behind the United States, doubts have recently emerged about the sustainability of China’s impressive economic success unless it undertakes major reforms and changes its growth model. Opinions vary, however, about China ever attaining the same level of growth that had been achieved in past decades, particularly since the 1978-79 reforms. Sometimes, expressing the present realities and forecasting the future is affected by the measures used, the observer’s expectations, and perceptions of what can or cannot be done to deal with current issues and problems. Often, it is a matter of perceiving the glass as half full or half empty. For some observers, the growth model, adopted since 1978-79, has been extremely successful in gaining the objectives sought, To others, that model resulted in many unintended consequences such as a wide disparity in incomes and excessive emphasis and reliance on manufacturing and exports at the expense of the service sector and domestic consumption. What cannot be disputed, nevertheless, is the fact that millions of Chinese have been lifted out of poverty, and incomes per capita have substantially increased. Instead of depending on foreign assistance, China is now an aid- giver and a major player in world economic affairs. This paper examines the current economic status of China, its transition from one of the poorest countries in the world, to become a middle income country despite the fact that it has a huge population of 1.3 billion people, and the imbalances that have emerged and have to be corrected to ensure sustained economic growth.

Suggested Citation

  • Hany H. MAKHLOUF, 2016. "China in the World Economy," Journal of Economics and Political Economy, KSP Journals, vol. 3(1), pages 105-110, March.
  • Handle: RePEc:ksp:journ1:v:3:y:2016:i:1:p:105-110
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    References listed on IDEAS

    as
    1. Justin Yifu Lin, 2011. "China and the global economy," Proceedings, Federal Reserve Bank of San Francisco, issue Nov, pages 213-229.
    2. International Monetary Fund, 1997. "Why is China Growing So Fast?," IMF Economic Issues 1997/005, International Monetary Fund.
    3. Zuliu F. Hu & Mohsin S. Khan, 1997. "Why Is China Growing So Fast?," IMF Staff Papers, Palgrave Macmillan, vol. 44(1), pages 103-131, March.
    4. Justin Yifu Lin, 2013. "Demystifying the Chinese Economy," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 46(3), pages 259-268, September.
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    More about this item

    Keywords

    State-owned enterprises (SOEs); Balance of trade; Asian Infrastructure Investment Bank (AIIB); Renminbi (RMB); Special Drawing Rights (SDRs); WTO.;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

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