HKU SPACE Community College History Essay: China's Rise Impact

This essay critically examines the impact of China's recent economic rise on the global landscape, debating whether it poses a threat or presents an opportunity for the world. The analysis delves into China's rapid economic growth, its increasing influence, and its implications for other nations. ...Read More

Running Head: History
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History
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History 1
Would you consider the rise of China in the recent years as ‘a threat’ or ‘an
opportunity’ to the world?
China is a nation present in the East Asia and is known as world’s most popular country with
the population of around 1.4 billion people approx. The nation is world’s third largest country
in terms of area. The economy of China is growing with a rapid speed which it making
people of China profitable as well. The country has huge amount of human resource that
helps them to grow into different directions and expand the scope of business as well1. This
critical paper analyse the details about economic opportunity gained by China that helped
them in its overall growth. This expansion has let the nation grow in all terms in the
worldwide environment which can either be threat or an opportunity to the world. Further,
analysis of this growth of China along with its impact on other nations is discussed below:
China emerges as one of the first civilization present in the world, since then China has
started growing with an exponential growth chart that has become beneficial for people living
in China. The nation has differential culture and people rigidly follow it; also their native
language Chinese is the primary language in the nation. Coming up to the rise of China in
previous years, it should be noted that income inequality in the nation is depleting with a
great speed which means that more and more people have started to earn to money and get
settled life as well. Export plays major role in GDP of the nation as the products made in
China are supplied in the worldwide environment. Growth of people’s wealth is more than
doubled since 2006, which means that people now hold more than double wealth that they
used to hold in the year 20062.
1 Country Meter., (2020) China Population clock [online]. Available from https://countrymeters.info/en/China
[accessed on 21 March 2020].
2 World Economic Forum., (2016) This is how China’s economy has changed in the last 10 years [online].
Available from https://www.weforum.org/agenda/2016/06/how-has-china-s-economy-changed-in-the-last-10-
years/ [accessed on 21 March 2020].

History 2
As mentioned above that export is one of the biggest factor for the growth of GDP of the
nation, however, the nation has started to reduce its reliance only on export so as to maintain
the balance of GDP. It should be noted that the nation has shown a remarkable transformation
in the worldwide environment that has influenced several other nations to grow and attain
recognition in the environment. In the year 2019, the GDP of the country grew by 6% approx.
that is not good but suitable for China.
Considering the impact of rise of China on the worldwide environment, it should be noted
that China’s growth could act in both positive and negative ways for the country. The
economy of China makes them one of largest economy holders in the world which means that
a major chunk of world’s economy is dependent of China. Thus, single mistake of China or
negative action could deplete the growth of world. For instance, in the current situation of the
world facing the pandemic situation of COVID-19. As the population of China was around
1.435 billion in the year 2019 which means that the country require high amount of resources
in case they face any threat3.
Countries from different parts of the world provided their assistance to China, thus this virus
is ultimately spread in other parts of the world including US, Italy and India. Resulting in
which, this situation occurs as a major crisis because thousands of people are getting infected
through and there has been lockdown in China and in other nations as well. Thus, the rising
economy of China appears as a risk because minor mistake of researchers of China led the
world to pay penalties in extreme ways. Also, the economy of China is devastated right now
which will take year to be normal again4.
3 Roper., W, (2020) Chinese Economy Hit Hard by Coronavirus Outbreak [online]. Available from
https://www.statista.com/chart/21135/production-and-sales-losses-in-china/ [accessed on 21 March 2020].
4 Segal., S, (2020) The Global Economic Impacts of COVID-19 [online]. Available from
https://www.csis.org/analysis/global-economic-impacts-covid-19 [accessed on 21 March 2020].

History 3
Also, situation of risk of rising China’s economy can be seen through the trade war between
US and China as well. US and China trade war occurred in the year 2018 when the nations
drifted their export and import ties apart and laid heavy tariff on export as well. This resulted
in reduction in the export and import facilities that subsequently reduced the business
functions of several small and medium enterprises as well. This trade war between two
biggest economy holders also affected several nations5.
Therefore, reliance on the economy of China could act as a difficult situation for other
nations and the world as well. Negative results of such reliance are evident and can be
analysed through above mentioned situations. Therefore, associations like WTO and IMF etc.
should regularly monitor the functions of the nation and provide assistance to other growing
nations so that they could become competitive and reduce the dependency of the world’s
economy on China6.
However, it should be noted that there is some scope of positivity in rise of China’s economy,
with increasing trade in China, people in other nations started getting products at economic
rates. Opportunity for business grew and companies started to make better use of technology
to compete as well. Technology is now easily available to small and medium companies as
well. The secondary and tertiary sector started growing in a better way because of fair
completion in the environment. Just the way, Chinese companies added competitiveness in
other nations; it also made small countries to survive in the cut throat competitive
environment. Resulting in which, these small companies were unable to offer products and
services to people at such economic rate which reduced the sale of domestic companies and
5 Swenson, D. L., and Woo, W. T. (2019) The Politics and Economics of the US-China Trade War. Asian
Economic Papers, 18(3), 1-28.
6 Bown, C. (2019) The 2018 trade war and the end of dispute settlement as we knew it. Trade War, 21.

History 4
increased import as well. This factor of China’s economic growth also affected the GDP of
other nations in negative ways because it reduced the scope of growth for domestic nations7.
Thus, in the limelight of above mentioned events, the fact should be noted that the paper
highlight details about the impact of China’s economy on other nations and whether it would
act as a threat or an opportunity for the world. Thus, with afore explained justified answers
that rise of China is more dangerous than beneficial for the world. The world need to find
ways to reduce its dependency on China or lay barriers on its economic growth.
7 Amadeo., K, (2019) China's Economic Growth, Its Causes, Pros, Cons, and Future [online]. Available from
https://www.thebalance.com/china-s-economic-growth-cause-pros-cons-future-3305478 [accessed on 21 March
2020].

History 5
References
Amadeo., K, (2019) China's Economic Growth, Its Causes, Pros, Cons, and Future [online].
Available from https://www.thebalance.com/china-s-economic-growth-cause-pros-cons-
future-3305478 [accessed on 21 March 2020].
Bown, C. (2019) The 2018 trade war and the end of dispute settlement as we knew it. Trade
War, 21.
Country Meter., (2020) China Population clock [online]. Available from
https://countrymeters.info/en/China [accessed on 21 March 2020].
Roper., W, (2020) Chinese Economy Hit Hard by Coronavirus Outbreak [online]. Available
from https://www.statista.com/chart/21135/production-and-sales-losses-in-china/ [accessed
on 21 March 2020].
Segal., S, (2020) The Global Economic Impacts of COVID-19 [online]. Available from
https://www.csis.org/analysis/global-economic-impacts-covid-19 [accessed on 21 March
2020].
Swenson, D. L., and Woo, W. T. (2019) The Politics and Economics of the US-China Trade
War. Asian Economic Papers, 18(3), 1-28.
World Economic Forum., (2016) This is how China’s economy has changed in the last 10
years [online]. Available from https://www.weforum.org/agenda/2016/06/how-has-china-s-
economy-changed-in-the-last-10-years/ [accessed on 21 March 2020].