China's Transforming Economy and Society

CHINA’S TRANSFORMING ECONOMY AND SOCIETY CHINA’S TRANSFORMING ECONOMY AND SOCIETY 1 1 CHINA’S TRANSFORMING ECONOMY AND SOCIETY China’s Transforming Economy and Society Name of the Student Name of the University Author Note Introduction This study is aimed at evaluating the economic performance of the Chinese economy. On the account of the strategic development, China has adopted several numbers of strategies, including ‘one belt, one road’ and

Running head: CHINA’S TRANSFORMING ECONOMY AND SOCIETY
China’s Transforming Economy and Society
Name of the Student
Name of the University
Author Note

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Introduction
This study is aimed at evaluating the economic performance of the Chinese economy. As
per the international community, the emerging international market share together with trade
conflict apparently depicts a paradoxical outcome for the global economy. On the account of the
strategic development, China has adopted several numbers of strategies, including ‘one belt, one
road’ and proposition of the Asian Infrastructure Investment Bank (AIIB) over the last decade.
All these economic initiatives are expected to revive the China’s market power in the export
sector. Notwithstanding, the hike in the USA tariff rate on the Chinese exported goods is the
growing concern for the Chinese policy makers. On the account of the aggravated price level of
the export items, the demand of the Chinese products will be gradually diminished. This results
in the diminutive impact on the country’s productivity, which in turn, pulls down the growth rate
of the employment level. The country’s dwindling impact is also being observed by other nations
like New Zealand as this country is registered as the second largest trading partner of China.
Further, China’s infringement policy in relation to the external affairs is reported to cause a
political conflict with the NZ government. In this case, the NZ administrator has been ready to
compromise the strong bilateral relationship with China on the sake of national security.
Discussion
China is recorded to have a spectacular performance in terms of emerging growth in the
international economy. Over the last four decades, the country’s economy has experienced with
the fastest annual growth rate at about 10% on an average. This developing economy expects to
enter into the group of the major economic nations owing to the persistent stable economic
progress (Li, Wang & Whalley, 2017). A significant portion of the Chinese population has been
reported to be driven out of the poverty status. The impressive outcome is the consequence of the

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improvement in the balance of trade and manufacturing sector. China’s trade development is
enhanced due to growing emphasis on the production of the exporting products and services.
This results in the improvement of the country’s employability and the export earnings. The
country’s robust economic progress has helped in the improvement of the bilateral trade relation
with other countries, like, New Zealand, Australia and the USA. However, China’s illicit
infringement in the international trade is the cause of concern of all its trading partners. The
protectionism policy and escalated trade strife possess critical issue to China. Contextually,
China’s trade conflict with the USA is reported to have a detrimental impact on the global
economy. The USA administration has decided to impose a high tariff rate on the Chinese
imported goods, which in turn, intensifies the price as well as lowers the demand of the Chinese
products in the USA. In a response to the increasing tariff rate, the Chinese authority has also
hiked the import tariff rate on the America’s imported goods. As a consequence of that, the
consumers of China have to compromise the product endowment owing to exorbitant price
charge of the imported goods.
Meanwhile, the shrinking demand in the Chinese commodities has lowered the China’s
Gross Domestic Product owing to having lower productivity and employability. The purchasing
power of parity has experienced a diminishing trend instead of showing emerging growth rate in
the international trade. Illegitimate industrial policy related to the defying the intellectual
property right is considered as a serious constraint in case of the China’s business expansion in
the global platform (Jinchen, 2016). Meanwhile, the Chinese manufacturers re reported to apply
illegitimate production technology owing to manufacturing goods at cheaper rate as well as to
augmenting the revenue of the domestic firms. Overall, the emerging growth in the global

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business is registered a paradoxical outcome in terms of the stable economic development of
China.
The Chinese government has initiated an international trade development strategy on the
account of re-emerging the global strength of the Chinese economy. This strategic movement is
known as ‘One belt, One Road’ (Aoyama, 2016). The country is aimed at developing a strong
business connection with the countries located in the Asia, Europe and Africa. This
comprehensive business plan is expected to compensate the loss related to trade conflict with the
USA, European countries and Australia. The objective of this program is to intensify the
infrastructure and transportation development process across the 152 nations. The initiative aims
to emphasize the international trade affairs with the other countries. Meanwhile, the domestic
manufacturing sector will be apparently evolved due to rise in demand for the export goods
(Ferdinand, 2016). The certain project is scheduled to be completed by the year of 2049.
Contextually. The role of the Asian Infrastructure Investment Bank (AIIB) is worth to be
mentioned to augment the development process. The AIIB was planned by China in order to
assist the development programs in the Asia-Pacific countries.
The monetary foundation is comprised of around 100 members across the world. The
member countries can get the monetary assistance on the sake of betterment in the economic and
social output. The AIIB is considered as a perfect substitute of the other international financial
institutions which are majorly controlled by the USA and the European Union (Zealand, 2016).
Therefore, many Asian and African countries are reported to be deprived from getting the
sufficient monetary assistance. Many infrastructural have been screwed up due to lack of capital
resources. The widening gap between the developing and development countries has been
aggravated instead of getting narrowed down. In this situation, the initiation of the Chinese

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government through the proposition of the banks like AIIB is a big financial relief for the
developing countries. This reduces the financial dependency on the developed nations like the
USA. The developing and poor countries expect to improve the balance of trade condition
reducing the trade deficit amount. The liability amount will definitely get assuaged. Having been
recorded a notable growth in the trade sector, the China’s GDP growth rate is projected at a
slower rate (Li, Balistreri & Zhang, 2018). This depressing outcome raises the urgency in the
infrastructure development. From the political point of view, China plays a key role during the
course of formulating policy on the behalf of the financial authority of the development
programs. In this way, China has undoubtedly enhanced the political power in the global
scenario (Winter, 2016). Nonetheless, the political strengthen has been enhanced due to the
country’s growing financial capability on the account of massive share in the international export
sector.
Every country is always aimed at nullifying the social issues with the help of corrective
measurements. Rectification of social problems apparently can lead the economy to a stable and
developed position. Having been labelled as the world’s second largest economy, China deals
with a massive number of consumers both at the domestic and the international level (Du &
Zhang, 2018). The emerging demand of the Chinese product apparently motivates the producers
to intensify their productivity. However, the economy has been experiencing a sluggish growth
rate in the case of economic expansion. This dwindling GDP growth is a major concern to China.
The existing trade war with the USA has a detrimental impact on the export earnings as well as
the employability. Nevertheless, the hike in tariff rate of the American commodities is expected
to enhance the growth of the domestic manufacturing sector. As per the economist, domestic
earnings will not be enough to boost the China’s economic growth (Swaine, 2015). The country

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requires more capital sources in order to retain notable position in the global market. Meanwhile,
stringent visa policy proposed by the American government has given a detrimental impact on
the employability as major portion of the Chinese students will not get as much job as they used
to get in the earlier days. The enhancement in the unemployment rate gives diminishing impact
on the cumulative productivity of the nation (Wilson, 2015). Meanwhile, the falling export
earning aggravates the trade deficit amount, which in turn creates excessive pressure on the
country’s foreign reserve amount. The banks are likely to face a significant amount of liability
instead of addition of credit amount. The economy operates under a considerable amount of lack
of capital resources. The Chinese banking sector would face a sizable loss due to invariable
amount of idle non-productive asset. In order to overcome these possible challenges, the Chinese
government needs to play an effective role along with adopting sufficient policy proposition
(Heng, 2017). The abrupt in hike in import tariff rate as well as stringent tax barriers need to be
banished with the help of immediate policy implementation. In this way, the country’s export
growth will be intensified owing to comprehensive trade policy and strong financial structure.
On the account of the china’s international bilateral relationship, New Zealand plays an
important role in terms of both political and trading background. New Zealand is holds the
second position in case of trading products and services with China. Meanwhile, the country’s
locational advantageous position in Antarctica is also a key influential factor to keep a goodwill
relationship in political terms (Brar, 2018). The economical arable land and along with
inadequate workforce has made the Chinese government as a significant investor in the
agricultural and the dairy sector of New Zealand. Contextually, NZ agreed with the China’s free
trade agreement for the first time as a developed country. In 2016, the NZ government has made

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more than sixty percent of the Chinese exported goods tax-free. This evolving trading
partnership is enable to yield a significant trading relationship within these two countries.
Further, all the exported goods from New Zealand is expected to be exempted from tariff
by 2019 in China. Meanwhile, the NZ’ neutral standpoint regarding China-USA trade strife
hopefully will not fetch disadvantageous outcome in order to enhance the business growth. The
dwindling bilateral relationship with the UK has enhanced the bilateral tie between China and
NZ. On the other hand, since the inception of the diplomatic relationship in 1972, these two
countries have been successfully continuing the bilateral goodwill. The dynamic relationship
covers different perspectives related to economic, defence and political scenario of the two
nations. However, the diplomatic relationship is under immense pressure due to NZ’ growing
proximity towards the United Nations (Hong et al., 2017). The recent trade conflict between
China and the USA is stated as a cause of the China’s stringent foreign policy for NZ. This sort
of policy possess detrimental impact on the country’s national initiative in bringing the peaceful
social and political environment. The traditional alliance between these two countries is now
challenging task (Backer, 2014). The NZ government has been striving to maintain the effective
balance between the economic and defence security. In terms of the security concerns, the
economy related issues are the secondary concerns to the government. Contextually, the NZ’s
security is currently facing a serious challenge due to the China’s unethical intervention
(Hopewell, 2015). On the account of international economic uncertainty as well as jeopardised
geopolitical situation are expected to have diminutive impact on the NZ’s bilateral relationship
with China.
Conclusion

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In a concluding note, the Chinese economy will be able to deliver impressive outcome on
the means of effective governmental strategies. The recent global trade conflict is expected to
have diminishing impact on the China’s export earnings from the USA and the European
countries. However, the nations’ robust growth in the domestic manufacturing sector will
mitigate the sluggish growth rate of the trading sector. The ruling political party of China has
taken some effective measurements owing to protect the domestic producers from the intensive
competitiveness of the international market. The hike in tariff rate on the imported goods is
considered as a key strategic decision in order to enhance the consumer demand for the domestic
products. The augmented demand is expected to intensify the employability within the nation.
Nonetheless, China’s proactive approaches through different monetary foundations like AIIB,
BRICS towards the financial structure improvement of the developing countries is the
appreciable movement of the world economy. In this way, the financial dependency of the
developing countries will be diminishing over the coming years.

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