Economic Comparison of China and Australia

The report provides a comprehensive analysis of the economic performance of China and Australia by comparing various factors such as GDP, growth rate, employment, standard of living, environmental policy, inequality, government's role, welfare system, education, and market involvement. The report highlights the differences in economic performance between the two countries, including the higher growth rate of China, lower unemployment rate in China, and higher standard of living in Australia. It also discusses the implications of these differences for economic development and policy-making.

Running head: ECONOMICS
Economics
Name of the student
Name of the University
Author note

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Table of Contents
Introduction:....................................................................................................................................3
Economic comparison of China and Australia:...............................................................................3
Comparison of growth rate of China and Australia:........................................................................4
Employment comparison:................................................................................................................5
Standard of living comparison of two countries:.............................................................................6
Environmental policy contrast:........................................................................................................6
Comparison of inequality:...............................................................................................................6
Government’s role comparison:......................................................................................................6
Welfare system:...........................................................................................................................6
Education:....................................................................................................................................7
Market involvement:....................................................................................................................7
Reference:........................................................................................................................................8

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Introduction:
This report is meant to analyse the economic performance of both the countries
depending upon the comparison of factors like growth rate, employment, standard of living and
from various other perspective.
Economic comparison of China and Australia:
China is the second largest economy around the world, which has GDP value of 14.23
trillion next to US. Country is based on the service sector, which contributed 51.6% of the GDP
(Pothen and Schymura 2015). On the other hand Australia ranks 13 according to the GDP rank
and it possesses GDP value of 1.390 trillion. Most of the GDP of the country comes from service
sector, which highlights that the economy is a developed one.
2012 2013 2014 2015 2016
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GDP comparison
China auatralia
Figure 1: Comparison of GDP of China and Australia
Source: (Created by Author)
Considering the figure 1, it can be seen that China has been growing at a rapid rate during
the last five years. Upward sloping line of Chinese GDP highlights that its GDP has been

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growing and on the other hand Australian GDP is dropping since 2014. Comparing them it can
be seen that both the country has vast difference in terms of GDP.
2012 2013 2014 2015 2016
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Comparison of GDP per capita
China auatralia
Figure 2: Comparisons of GDP per capita
Source: (Created by Author)
GDP per capita is one of the economic tools that aid to differentiate between the
economic performances of two countries. GDP per capita of Australia is much higher than
China; however, it has been falling since 2013 (Selden 2016). On the other hand, there has been
slight rise in GDP per capita for china due to rise in government’s intervention.
Comparison of growth rate of China and Australia:
It has been observed that China is one of the fastest growing economies in the world and
on the other hand Australia has been trying to stabilise its economy since post Global Financial
crisis. From figure 3, it can be seen that Australia has higher growth rate compared to china,
though overall growth of china has been higher than china.

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2012 2013 2014 2015 2016
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Comparison of growth rate
China auatralia
Figure 3: comparisons of growth rate of China and Australia
Source: (Created by Author)
Figure 3 also highlights the trend of the GDP growth. Considering the line diagram it can be
stated that china’s economy has been going to face higher growth due to present governmental
reformation plan. Australia on the other hand is facing lower growth rate due to lack of skilled
labour.
Employment comparison:
China has the highest labour force, whose value is as high as 803.6 million according to
estimation of 2017. On the other hand Australia has only 12.7 million labours. Considering the
unemployment it can be seen that china has lower unemployment rate, which is only 3.97%.
Australia on the other hand has much higher unemployment rate (Hawthorne 2016). It is as high
as 5.4%. Service sector and mining industry in both the countries provides most of the
employment, and the wage rate is much higher in Australia (Hua et al. 2016).

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Standard of living comparison of two countries:
According to the latest statistics, HDI of Australia is .939 and when it comes to china,
then it is .738 (Hua et al. 2016). Thus it can be stated that Australian enjoys a higher standard of
living compared to Chinese population. GINI coefficient of Australia is 0.303 and china scores
0.490 (Wiedmann et al. 2015). Higher Gini for China highlights that income distribution is
uneven for china compared to Australia that hampers the standard of living.
Environmental policy contrast:
China is one of the nations that considers environmental factor for economic
development seriously. It produces 7.55 metric tons of carbon annually and when it come
Australia, then it produces 16.35 metric tons. This vast difference in carbon emission highlights
the environmental standard of the economy and their respective dependence on the capital
intensive production (Hua et al. 2016).
Comparison of inequality:
Considering the economic growth of both the countries and distribution of wealth figure,
it can be seen that china has higher inequality compared to Australia. However, economic growth
in china has been higher than Australia (Xie anf Zhou 2014).
Government’s role comparison:
Welfare system:
Government in china is highly interventionist in nature and it prefers to control the
economic performance of the nation. On the other hand Australia has much liberal governmental
policy, which has aided it to become where it is now (Xiao et al. 2014).

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Education:
Chinese government provide free education to primary level and, when it comes to
Australia it has 20% higher literacy rate compared to china (Ehrich et al. 2016). Female
education is higher in Australia compared to china; however skill development program is
available in higher number in china.
Market involvement:
Chinese government still believes in protectionist program to enhance ability of higher
production of domestic firms, where Australian government rather than minimum wage rate
legislation does not prefer to intervene in market (Hua et al. 2016).

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Reference:
Ehrich, J., Howard, S.J., Mu, C. and Bokosmaty, S., 2016. A comparison of Chinese and
Australian university students' attitudes towards plagiarism. Studies in Higher Education, 41(2),
pp.231-246.
Hawthorne, L., 2016. Labour market outcomes for migrant professionals: Canada and Australia
compared.
Hua, Y., Oliphant, M. and Hu, E.J., 2016. Development of renewable energy in Australia and
China: A comparison of policies and status. Renewable Energy, 85, pp.1044-1051.
Pothen, F. and Schymura, M., 2015. Bigger cakes with fewer ingredients? A comparison of
material use of the world economy. Ecological economics, 109, pp.109-121.
Selden, M., 2016. The political economy of Chinese development. Routledge.
Wiedmann, T.O., Schandl, H., Lenzen, M., Moran, D., Suh, S., West, J. and Kanemoto, K.,
2015. The material footprint of nations. Proceedings of the National Academy of
Sciences, 112(20), pp.6271-6276.
Xiao, L.D., Wang, J., He, G.P., De Bellis, A., Verbeeck, J. and Kyriazopoulos, H., 2014. Family
caregiver challenges in dementia care in Australia and China: a critical perspective. BMC
geriatrics, 14(1), p.6.
Xie, Y. and Zhou, X., 2014. Income inequality in today’s China. Proceedings of the National
Academy of Sciences, 111(19), pp.6928-6933.