Day 8: China

Chinese economic growth in the last 20 years. The 20th century China has risen to become a significant economic power in the modern world. Since the 1980s Chinas GDP (gross domestic product) has risen over $10.7 trillion. One of the largest economy by market exchange rates, only beaten by the US. China’s trade policy in the 1980s was a significant factor in starting this longterm economic growth. Before the trade policy, China’s foreign trade was less than $40 billion. Four decades later this number was over $4 trillion

“the fastest sustained expansion by a major economy in history.”
The World Bank

Chinas GDP doubles every 8 years, and this rate is increasing. Along with this, the people living in China are experiencing improvements to their quality of life. With approximately 800 million people being taken out of poverty as of 2019; this number is likely to have increased.

Positives:
- poverty reduction
- more international trade
- purchasing power parity dramatically increases
- increased rate of innovation

Negatives:
- much larger potential debt for the government
- higher GDP per capita means more consumption of resources
- potential income inequality growth