Economic Indicators
Economic indicators can be defined as the metrics against which a nation’s economic power is gauged. They can also be viewed as key performance indicators. China’s economy is highlighted by several factors, with the three primary factors being the gross domestic product – GDP, the per capita GDP, and the approximated GDP growth. In its 2021 release, the World Bank stated that China had the second-highest GDP at 17,734,063 million US dollars (World Bank, 2022a; Figure 1). China’s GDP strength is enormous. Another crucial economic indicator is the per capita GDP, which results from the GDP’s division by the number of households. China has a $19,338 GDP per capita value (World Bank, 2022b; Figure 2). There is ongoing debate surrounding China’s low GDP per capita.
Many proponents of the “Chinese living conditions are too poor” often overlook that China is the most populated nation, with an estimated 1.402 billion people as of 2020. To have a realistic interpretation of the GDP per capita metrics, it is crucial to conceptualize the effect of a nation’s population. For instance, China has a population of 1.4 billion people. The high number of households affects the gross domestic product per capita income due to high unemployment rates, as well as other GDP sink factors that “dilute” the level of income that is availed to each household. Lastly, China’s GDP growth rate of 2.3 % indicates that the nation has a positive growth rate as per 2020 estimates (World Bank, 2021). The three economic indicators show that China’s economy is robust, with the GDP growth rate expected to raise the GDP per capita.
Economic Development
As you may all be aware, a country’s economic development is spurred by using land, capital, labor, and entrepreneurship. China’s economic development, mainly witnessed in the last two decades, has been prompted by a well-functioning relationship among the factors of production indicated above. Allow me to highlight more specific causes of China’s economic development. The first cause is the nation’s capital investment. For instance, you are highly likely to read about China’s Belt and Road Initiative, where the country has committed at least one billion US dollars to infrastructure development in the global south, which also refers to the developing and underdeveloped countries in the world. It is a grand project that notably increases global GDP while helping China maintain its own economic development.
China’s foreign direct investment in other countries contributes to the nation acquiring economic, social, political, and military benefits. The second factor contributing to China’s economic development is rapid productivity growth. The Chinese government continues supporting productivity in various forms, such as legislation, founding practical tax regimes, and generally creating a favorable trading environment.
Social Development
A nation’s social development is mainly determined by the human development index (HDI). This index demonstrates how well the country cares about its citizens. China is the world’s fastest-growing economy, and this progress reflects the human development index. For instance, China has improved from a 0.499 HDI index in 1990, which was a very low number for a country, to a 0.761 HDI in 2019 (Human development report, 2020). As a result, today, China belongs to the group of high human development alongside other developed countries. While there are still shortcomings in the Chinese economy and social development, the nation has been developing rapidly to meet the international standards of human development. One of the criticized issues is the growing disparity in wealth between the upper and lower class. This problem emerged from the nation’s focus on manufacturing and the exploitation of the working class. However, this problem is global as the rich people are getting richer and poor people are getting poorer because of manufacturing economic issues.
Political Situation
China’s economic and military power has grown substantially in recent years because of its political regime. China runs on the communist model, with the most prominent political party being the Communist Party of China (CPC). This model is frequently criticized by people around the world due to its information control and restrictions on democratic freedoms. Nevertheless, it is also true that this regime paved the way for the most impressive economic development in history, as the GDP per capita has increased by 1000% over the last 30 years (Human development report, 2020). As a result, regardless of the opinions on the political regime in China, the country has proved its economic strength.
Summary
In summary, China is a force to reckon with in global affairs. With the world’s highest population and industrialization indices, the nation’s economy is set to grow gradually. The nation’s economic progress will also support social development. From these considerations, we can expect that China will continue to grow its presence in the international arena and become more influential globally. Thank you, it has been an honor addressing you, and have a nice time!
References
Human development report. (2020). United Nations Development Programme (UNDP).
World Bank. (2022a). Gross domestic product 2020. World Bank Report. Web.
World Bank. (2022b). GDP per capita, PPP (current international $).
World Bank. (2021). World development indicators.