One of the Fastest Growing Economies in the World the Exports and

Essays on One of the Fastest Growing Economies in the World: the Exports and Imports of China Research Paper ï » ¿China has emerged as the leading manufacturing hub and growth region in the world and along with India, it forms one of the fastest growing economies in the world. In 1980, the value of trade was about 767.4 billion and by 2006, the figure had risen to 5330.4 billion USD and this represents a growth of 690% (Liu, 2007). China's economy is so big and growing so rapidly that it remains a magnet for foreign investors. Investors are also attracted because of the cheap, unskilled labour, which cost about a third of the cost in most other Asian countries. Beijing is trying to cap levels of investment in several industries and has imposed price freezes on some necessities. It has also stepped up enforcement rules that govern investment projects and land use (Swan, 2007) Figure 1. Chinese Exports as a % of GDP from 1980 to 2006 (Hugh, 2008) Above figure shows the exports and imports of China, as a percent of the GDP. It is interesting to note that the exports grew from 17% of the GDP in 1980 to 35% while imports grew from 15% to 30%. Oil imports make a large percentage of the imports made by China. China has a number of active trading partners. The following table gives data on the trade deficit of China with other countries and data the years from 1980 and have been compared to 2005. The figures show that there is an increase in exports from China to all countries and China has become a next exporter to the rest of the world. Country 1980 2006 Increase +/– % Taiwan –310.6 –255.9 21.40 Korea –216.1 –185.3 16.60 Japan –98.2 –59.3 65.70 Angola –57.2 –28.2 102.60 Saudi Arabia –54.6 –38 44.00 Philippines –52.3 –33 58.50 Malaysia –43.8 –44.5 –1.6 Thailand –36.3 –24.6 47.80 Iran –30.7 –16. 5 86 Table 1. China Trade Balance with other countries (Zhang, April 2007) Following table gives the main products that are exported and imported from China. Top China Exports 2006 USD Billion Rise over 1980 Computer accessories, peripherals and parts 28.90 NA Miscellaneous household goods 26.50 +17.2% Toys sporting goods (e.g. bicycles) 22.20 +10.2% Computers 17.40 +20.2% Non-cotton household furnishings clothing 14.60 +11.3% Video equipment (e.g. DVD players) 14.50 +34.9% Household furniture 13.20 +14.3% Footwear 10.70 +11.1% Cotton household furnishings clothing 9.90 +29.6% Telecommunications equipment 8.30 +23.7% Zinc 8.6 million + 616% Nickel 25.9 million +273% Lumber 74.7 million +213% Specialized mining oil processing equipment 96.6 million +88% Oil field drilling equipment platforms 1.6 billion +182% Top China Imports 2006 USD Billion Rise over 1980 Semi-conductors 5.9 billion +74.7% Civilian aircraft 5.3 billion +39.7% Soybeans 2.5 billion +12.5% Plastics 2.2 billion +18.8% Raw cotton 2.1 billion +47 Industrial machines 1.97 billion +29% Copper 1.86 billion +1% Computer accessories 1.82 billion '+27.5% Aluminium $1.7 billion +90.3% Steel making material 1.69 billion +11.9% Table 2. China Trading Commodities (Daniel, June 2007) It can thus be seen that the economy of China has grown from 1980 to 2006 and beyond. China is regarded as the place where all the future growth is expected. The country has managed to shed its decades old communist image and turned into a modern capitalist nation. References Daniel Workman. Jun 28, 2007. China Trading Partners and Commodities Traded. Retrieved 12 October 2009 from http://internationaltrade.suite101.com/article.cfm/top_chinese_exports_imports Hugh Edwards. 16 April 2008. China inflation and GDP growth March 2008. Retrieved 4 August 2008 from www.chinaeconomywatch.com Liu Minquan, Liu Liu. October 2007. Wage-related Labour Standards and FDI in China: Some Survey Findings from Guangdong Province. Journal of Pacific Economic Review. Volume 9. Number 3. pp. 225-243 Swan James. February 9, 2007. Africa-China Relations: The View from Washington. Columbia University, School of International and Public Affairs, New York Zhang Yanying, Gaiyan Zhang. April 2007. The Prospects for China’s Free Trade Agreements. Journal of the Chinese Economy. Volume. 40. Issue 2. pp: 5-35