The Impact of the Growing Economic Power of China Essay
China is the second largest economy in the world after the US. This is measured by both nominal GDP ($4.99 trillion), and by purchasing power ($8.77 trillion). The Peoples Republic of China, as it is officially called, is the world’s fastest growing major economy in the world with an average growth rate of 10% for the past 30 years. China is also the second largest trading nation in the world as well as being the largest exporter and second largest importer of goods.
China has the largest population in the world with approximately 1,338,612,968 inhabitants. With more than 70% of the population being ‘economically active’ i.e. at a working age (15-64) this, as well as having a large …show more content…
Below is the chart of percentage of China's contribution to global economy since year 1830 and forecast to 2020:
Although so far the impact of China’s economic growth has been negative, most of its impact on the global economy is very much positive. According to the statistics released by the World Bank, China has made the largest contribution to the growth rate worldwide, of over 13% on the average, since China joined the WTO in 2001. Now, China's economy ranks at the fourth largest in the world in terms of gross domestic product (GDP) at current exchange rates. In 2005, China contributed 14.3% to the world economy growth as the second largest country to contribute the world economy growth after USA. China’s entry to WTO in 2001 and open up its closed door economy, its output rate had consistently grown throughout the recent 20 years. China’s percentage of world GDP had increased by