How is Chinas economy growing so crazy, and how it affects the world as well as China Essay

AbstractIn this case study, I will be doing research on how is Chinas frugality growing so crazy, and how it affects the domain as well as China. You will also see font their economy is growing so nimble and what are the challenges they are facing right now and the future.IntroductionThe Republic of China has overtaken Japan as worlds second largest economy, after United States, Japan had held the 2nd position since 1968. In 2016 or earlier, International Monetary Fund (IMF) claims Chinas economy surpassing US, the era of America economy leadership will be over. Its average grow rate is about 10% for pass 30 years, making them as the worlds fastest growing economy. China has also climbed to the worlds largest exporter and second largest importer in the world. China has considerable economic weaknesses like low income levels, resource depletion and high unemployment, whereas the U.S. has comparable strengths and is poised to remain a global leaderWhy is their economy growing so f ast?The reason why their economy is growing dramatically, we will have to start from 1978, when the government executed a bunch of strategies for economy reform. These programs are including, encouraged agrarian enterprises, private businesses, liberalized foreign trade, investment, less control over prices, invested in industrial production, educate their workforce. Their economy had an annual growth of 6% initially, and peak of 17 percent, electropositive every capital income was quadruple in last 15 years. In 1997, some experts had already predicted that the China economy would sure be bigger than the US in less than 20 years. Here is IMF research team conclusion New factories, manufacturing machines, communication systems and the amount of Chinese workers, increase in productivity were the factors that lay them as one of the strongest economy country. image02.jpgAutomobile IndustryChina was rank third in the automobile industry by 2006 after Japan and US. During the reform, t heir self-propelled productions were less than 14000 yearly. Guess what? By 2002 their production jumped all the way up to 3.25 million And 2009, it reached to 14 million. In 2009, China passed the States to become number 1 political machine maker worldwide. Domestic sales stayed with production, in 2006 8 million of cars were interchange, which includes 5 million passenger cars and 2 million of commercial cars which shows how low price they sold their cars. The vehicles industry has been so successful in China so they begin to target exporting body parts worldwide in 1999.China has made a big step planning to get involved into image03.pngautomobile export business in 2005. In 2004, 15 major oversees automotive manufacturer plants in China. By 2003 China exports cost of 5 billion with unit of 80000 vehicles and parts, 174000 units in 2005 and 350000 units in 2006. Their goal is to reach at least of 80 billion US dollars by 2010. image04.pngNatural ResourcesCoalCoal is one of the most important natural resources for China, the most conserves mineral resources are considered to be coal and iron ore. Although they lot be represent in nearly most of the provinces, almost all of them are located in the northern part of China. A lot of severe quality coals like bituminous coal are mostly reserved in China, Anthracite coals also present in some areas but its quite an rare overall, thats mostly found in Rocky Mountain. Coal helps the bulk of Chinas energy consumption (75% in 2006), which led them once more the worlds largest producer/consumer of coal. China usage of coal will be increasing dramatically as their economy continues to rise in sacrosanct terms. If China keep increasingly rely on coal as a power consumption, it is going to put them becoming largest acid- rain causing southward dioxide and greenhouse gases.Oil and gasChina oil resources are also majorly located in north area provinces types of oil include Oil shale and crystallize oil. They uses u p most of their oil output but doesnt export any crude oil products, they are starting to develop oil deposits in China Seas and other oceans. Amount of natural gas reserves is unknown because they have only done a little exploration job on natural gases, Szechuan province accounts the most known natural gas reserves and production.Hydroelectric resourcesChina has a great hydroelectric production due to their great river network and the mountainous terrain. A lot of the hydroelectric stations are located in the southwest of the country where low amount of coals are found but demand for energy is high. The potential of energy in north is small but the first hydroelectricity power station was built there by the Japanese during the occupation. In the winter, they have lower amount of rainfall, therefore, the stations are usually run less than the normal capacity, on other hand, flood eternally occur in the summer.What are the challenges that China is facing?High InflationInflation is definitely one of the most challenges globally, but it is definitely the worse cataclysm for China that other countries. For clothes, the costs jumped 1.5% in April, it is the biggest up since 1997. For non-food, it didnt have that much of different but it was still about 3%. For food, the price has inflate 11% on April