After the ho-hum gain in 2016, the economic activities are gaining pace in 2017 and 2018. Especially in the emerging markets, developed and developing economies. The US economy is the world’s largest economy. After the recent Presidential elections have helped in driving up its economy. Trump is forming new business policies to attract more profits and maintain the economic power of America. On the other hand, the Chinese economy is undergoing remarkable and profound changes. According to recent statistics, the Chinese economy has seen a growth of 6.7 percent, that helped China to create 12.49 million jobs in cities and lifted more than 10 million of its population from poverty. Read more…
The UK economic growth will slow down to 1.6% in 2017 and 1.8% in 2018. The service sector will remain positive but slower in 2017-28. It is estimated that 30% of the existing jobs in the UK can face a potential risk of automation by the early 2030’S. The rapid growth of the Chinese economy has created many problems for other leading economies. The Chinese economy is emerging as a dragon on other economies. It has declined the manufacturing power of other economies. Read more…
Is Chinese Economy a Threat?
China has become the world’s largest exporter since 2013 to 2015. It is estimated that it has exported $2 trillion of its production in 2016. China does a lot of manufacturing for foreign companies. These companies ship their raw material to China. Because of the cheap labour force, they are able to manufacture these products at cheaper rates. China’s exports primarily include electrical equipment and another type of machinery’s. The list also includes computer and data processing products, optical and medical equipment, apparels, fabrics, and textiles. China is the world’s largest exporter of steel.
Does China engage in unfair trading practices?
In the presidential campaign, Donald Trump accused China of using unfair trade techniques. He threatened China to impose a 30 percent of tax on all the Chinese exports. The US Department of Commerce successfully brought the case to the World Trade Organization of unfair practices of China involving tires, steel, and other materials. China’s unfair trade practices was also a hot topic while the presidential campaign of former US President Barack Obama.
Recently How China influences Global Economy:
In recent times it was seen that the Chinese economy has slowed down. The economists have stated that the Chinese economy may be slowing down faster than they have thought. The only question arises that whether the China’s Economy would take softer or harder landing.
- Lower Oil Prices: China was the largest importer of oil from oil-producing countries. The falling demand for oil in recent times has affected these countries economy. China’s thirst for oil has decreased to a greater extent, impacting the other global economies.
- Falling Commodity Prices: Recently commodities are losing value because of lesser demand. China is the largest exporter of iron ore, lead, steel, copper and other important commodities. Slow-down in the Chinese economy has reduced the demand for such investment commodities, which has immensely affected the exporting countries like Australia, Brazil, South Africa, Peru and Indonesia. This fall in the commodity prices has threatened the global economy.
- Reduction in Trade: In the year 2014, China was the leader in trade. It was accounted that 10% of the global trade was from China. But recently the demand for imports has fallen consistently to 15%, which has impacted the countries which were in trade link with China.
- The Corporate Domino Effect: The companies which have a direct or indirect link with China may face the domino effect. Companies like Apple, Microsoft which directly rely on China are most directly exposed to this effect. The domino effect faced by such companies will directly hit the global economy.