Chik, Kenrick (word count: 396 words)

China’s Impact on Global Economy

Batson and Dean (2007), Today, China represents not only a fast-growing source of revenue for many multinational companies, but also a rising source of profit. The Open Door Policy in 1978 brought China a massive increase in interaction with the global economy and a tremendous economic growth rate . An analysis of recent statistics illustrates that China will overtake U.S. economy and become the world’s biggest economy structure by 2030. What makes China has such huge impact to the world economy? The structural transformation is most likely the answer due to the rapid population growth, technological development and government policies. China’s economy transforms from primary sector (self subsistence) to tertiary sector (provides goods and services to worldwide customers). With a higher quality of goods and services which allows market expansion, this enhances the competitiveness of market position among other developing and developed countries such as India and USA respectively. Similarly, the secondary sector and the tertiary sector also play a very important role in export. Although it had to wait 15 years to be admitted to the World Trade Organization, it is now the world’s third largest exporter (Hutzler, 2005). Entering the WTO allows more and more free trades occur in China, it creates a lot of job opportunities for local workers in China. However at the same time, it causes a growing unemployment rate in other countries due to the lack of competitiveness on product price, land cost and sufficient of skilled workers against China. Since China has such significant advantages, more well-known foreign companies like Intel Corp. has decided to step into this huge market. This may highly affect the economy of other countries because those worldwide