Chinese Economy Research Paper Example | Topics and Well Written Essays - 1000 words

Chinese Economy - Research Paper Exampleof Foreign Trade and scotch Relations (Import/Export License System, 2008).International organizations have displayed keen interest in investing in China, notwithstanding its restrictive policies. China has displayed good rail line sense in spite of its negative political rhetoric. 400 of the top fortune 500 companies have invested in China. Cheap labor and improved on the job(p) conditions appear to spur economic radiance. However, it is good to keep fingers crossed. Economic gains have yielded pocket-sized political reforms. In case flight of foreign capital starts pickings place there will be problems of unemployment and uncertainties in finance (Overall Evaluation of WTO Entrys Influence on China).While on the subject, it is also pertinent to remember Chinas harvest-time is spurred by exports. Its domestic market may find it very difficult to survive should exports come down significantly or vanish altogether. For the moment, China fac es little competition in the manufacturing sector, thanks to its political ideologies.Chinas imports and exportsChinas major exports consist of machinery and transport equipments constituting to nearly half of the total exports. Another major portion of the exports comprise of textile, good-for-naught and metallurgical products constituting to 18%. Chemical products, food, mineral and fuel materials made of up 10% of the total exports. There is an exponential increase in the machinery and transport equipments fragment of the exports from a mere 5% to 47% in 2007 (China exports by category of commodities, 2010).For year 2007, machinery and transport equipments made up the majority of the imports, accounted for USD 412 billion or 43% of total import volume. Next major imported products were chemical products which took 11.3% mineral and raw material accounted for 11.0% and textile, rubber and metallurgical products were 10.8% (China imports by category of commodities, 2010).Chinas r eputation as the number one manufacturer of world products today has enabled it capture myriad markets from all over the world, notably the United States (US) and the European Union (EU). Corporations in the US and the EU who found their fortunes dwindling in their own countries rose like the proverbial phoenix by establishing their enterprises in China.Chinas Economic SystemChinas new-found euphoria as a major contributor may also prove to be a setback in certain quarters. As socialist economy, China observes the rule-of-the-thumb and cannot accept the principles of