China, a country with a population of over 1.3 billion, has made a great change in its economy over the past three decades (Morrison). China is the most populated country in the world occupying about 20% of the total world pollution. Its government, the Communist Party of China has been ruling the country for over 63 years since 1949.
China has shown a great change in its economy starting from 1978. It has become one of the world’s fastest growing economies ever since (Wiki answers). China may have started with very little money, but it is now holding the world’s second largest economy. It is also the second largest importer and the largest exporter of merchandise (Wiki answers). Some ...view middle of the document...
It only exported simple goods and raw materials (Sun). After the year 1978, China gained huge benefits from the trade system. The Communist party opened its door to China’s relations with foreign countries. Great changes have taken place in trade and economic reforms. Its increase in trade incomes encouraged China to trade more with the international world (Sun). China then began to trade with the USA, which boosted its economy.
Table 1 shows how Chinas Real GDP was growing from 1979 to the 1st quarter of 2012. As we can see from the table, 1984 was where China had the most GDP growth hitting 15.2%. In 2008, Chinas GDP fell by 0.4%. The Chinese government made a law which boosted the investment and helped to prevent an economic slowdown in the country (Morrison).
Table 1: China’s Average GDP Growth (Morrison)
China also trades with Ethiopia. More than 70% of the households and manufacturing goods are ‘Made in China. However, I think that Chinese products will not be a good choice for people that are buying them in this country. What I have heard is that Chinese products that are sent to third world countries are very different to the products sent to the western countries. This difference is mainly by the efficiency of the products. In Ethiopia, Chinese products are relatively cheap, but they are really worthless. They break, or malfunction in a few times. I personally don’t buy Chinese products. They might be cheap and easy to find, but they are really not worth it. I spoke to Demeke about Chinese products. He said, ‘Chinese products are easily broken. I bought an adapter which was made in China and it broke within 1 week!’ (Demeke). I too have faced these types of consequences and agree with Demeke’s thoughts.
On the other hand, China has many industries in Ethiopia. I support this because they improve Ethiopia’s economy. They work on roads, railway lines, and other projects. This has affected my life in a positive way. The building of new roads makes it easier for me to get to some places. The busses that China manufactures for us make life easier for those who don’t have cars. Now, what I am looking forward to is the railway system. This will have a huge impact on the Ethiopian population. It will be faster, and cheaper than the taxis and busses we use now.
Graph 1 shows the trade freedom between three countries. We can see that USA has a leading trade freedom hitting 86.6% in 2007. China started from a very low point and reached 72% in 2013. This increase encourages businesses to set up and trade with other countries. Ethiopia, a country that is the poorest from the other two is not doing badly. Its trade freedom was 7% above China’s in 1995, but because of its huge depreciation in 1997, China took the lead. From the graph, we could estimate future trends. I presume that China will overtake USA in about 5...