China's Dramatic Growth
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China's Dramatic GrowthMany people know China is a rapidly growing country with hard-working and high-educated people. The west is suffering a recession, and the economy isn’t growing a lot. Besides that, the west is lending a lot of money from China. This makes people wonder if China’s dramatic economic growth and political influence is threatening the west. But is this really true?
The first notable economic trend is that China and the West are relying on each other. China is lending a lot of money to the west. China is the largest single holder of U.S government dept. The most obvious reason for this might be that China wants to prevent the west from always staying in a recession; since the west is China’s biggest export market. In this way they are both relying on each other. China is relying on the west as export market, and the west is relying on China as holder of dept. This can be seen as threat for both.
A second notable economic trend is that China is exporting a lot. China’s export was worth 177.97 Billion USD in August of 2012. (Trading economics, 2012). As a result of this, you can find the words you’re probably familiar with “Made in China” in every big store, on many different products. China exports everything; from Apple computers to organic products. This great export happens because China produces products cheaper than the west, since the labour costs are lower there. This leads to a lot of outsourcing to China, which has a negative influence on the employment rate in the west.
Besides exporting products, China is also very good at copying products. They do this because sometimes the government doesn’t allow importing products from the west. But at the same time, products are copied because a lot of customers are interested in cheaper versions of products. Not only the price but also the non-awareness about existing, original products, makes the copying of products successful for China. This leads to fewer sales of original products from the west. Which is...