China And Its Integration With The World
The basic philosophy of the Chinese nation no longer blooms under the bosom of Socialism as lauded by them, it's ruled by Capitalism. It's notable that the complex dynamics of development so interloped within the society strived to maneuver the state into the horizon of development. Right from the early 1980s, a new capitalism class has begun to develop in China and Imperialism though not mentioned in the public has a firm grip in the minds of the ruling classes of the society. It has penetrated into the classes of aristocrats and this could be seen in their prevailing economic systems wherein the government controls the fair share, or 98 percent of the banking sectors.
The country is dependant so much on imperialism that majority of its financial flow is targeted to be invested around transnational corporations such as the World Bank and The Government of USA.A mentionable fact that is very prevalent now is that of the increasing expectation of nations. They are beautifully structured around the economy of China, thereby giving a sense of transnational globalization and a string of dependency on its economy and this chain is incepted by the US itself.
The GDP of China has the record of having a fastest growth that it averaged around 10 percent growth over the last twenty years. On the other hand, the developed nations have an average growth of 2.5 the republic's massive growth may be accounted by Foreign Capital and its dependency on Exports. The integration of China in world economy has left the financial advisors of world in a state of speculation given to China's quality as the centre of world's destination for foreign investment. The overall consumption by the nation on most of the foreign products such as iron, steel, copper and aluminum are accounting to 25- 30 percent.
The rapid growth of China can be traced back to the foreign capitals which accounts to a major share which have now transformed to vast industrial complexes near its coastal towns. The availability of cheap labor could also be called into account for its financial economy.
The availability of low cost labor, and low manufactured goods have paved way for China to become a global Bazaar of relatively cheaper products particularly for products related with Information Technology and Electronics. It's recorded to be the biggest product exporter for United State, and it's the biggest creditor for US. China has now become a major participator in international economy and it's controlled and heavily managed solely by Government.
China's economic development has led to the emergence of new questions such, Will China decouple with US? Will it support US in its financial stabilization? Answers to such questions may not be readily available but they will surface after some time. China's capitalist economy though boisterous and budding, may not be a long term stable growth, there are times when economies that portray higher financial growth tend to fall in instability and crisis, given the factor of internal revolution, the markets in China are unpredictable.
