Influence of the Financial Crisis on the Chinese Economy
Chinas economy and the influence of the financial crisis
Introduction
China has one of the largest economic powers in the world. In the times of the financial crisis it is the more interesting in which ways this influences the economy of the Peoples Republic. This might be the beginning of a new era. It is foreseeable that the world will change and that America will lose power. That is why I want to deal with a global topic from a Chinese point of view. To reflect this topic the main part of the following essay is divided into four parts. The first one will describe Chinas economy. It is a general overview to get an idea about it. The second part deals about the financial crisis 2007/2008. It will sum up how it started which were the reason for the disaster and how it spread around the world. The third part will deal with the influence of the crisis on the economy of China. It will answer the questions if and how China has to deal with it. The last part gives a short foresight and draws conclusions from the events.
Main part
Chinas Economy
Since 1949 Chinas economy changed from a planned economy to a socialistic economy with a Chinese impression. Because of this market economy China has a huge potential of growth. This is also related to the size of the country and its will to make up for the world wide leading economies. And this is also way its growths is expected to last for the future. Since the 1980s and the early 1990 the economic cycle decreases a little but compared with other countries it is still enviable. Even though the GDP of China equals the one of an developing country which a also based on the size. The growing potential is still not achieved and requires a better division of the markets within the country. This means also an economic exploitation of the whole country which is in progress. The difference between the booming east coast and the rest of China is to high.
Chinas economy is both still in progress to become an industrial and
Introduction
China has one of the largest economic powers in the world. In the times of the financial crisis it is the more interesting in which ways this influences the economy of the Peoples Republic. This might be the beginning of a new era. It is foreseeable that the world will change and that America will lose power. That is why I want to deal with a global topic from a Chinese point of view. To reflect this topic the main part of the following essay is divided into four parts. The first one will describe Chinas economy. It is a general overview to get an idea about it. The second part deals about the financial crisis 2007/2008. It will sum up how it started which were the reason for the disaster and how it spread around the world. The third part will deal with the influence of the crisis on the economy of China. It will answer the questions if and how China has to deal with it. The last part gives a short foresight and draws conclusions from the events.
Main part
Chinas Economy
Since 1949 Chinas economy changed from a planned economy to a socialistic economy with a Chinese impression. Because of this market economy China has a huge potential of growth. This is also related to the size of the country and its will to make up for the world wide leading economies. And this is also way its growths is expected to last for the future. Since the 1980s and the early 1990 the economic cycle decreases a little but compared with other countries it is still enviable. Even though the GDP of China equals the one of an developing country which a also based on the size. The growing potential is still not achieved and requires a better division of the markets within the country. This means also an economic exploitation of the whole country which is in progress. The difference between the booming east coast and the rest of China is to high.
Chinas economy is both still in progress to become an industrial and