China's Transforming Economy and Society

Running head: CHINA’S TRANSFORMING ECONOMY AND SOCIETY
China’s Transforming Economy and Society
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CHINA’S TRANSFORMING ECONOMY AND SOCIETY
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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