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Made in China – The People’s Republic as a World Trading Power

To see so many products in our retail stores stamped with "Made in China" on the labels, one might assume the country has long served as a major trade partner with the United States and the rest of the world. To find that China comprises a group of nations considered "newly" advanced in terms of economic development may confuse some. If China stands as the second largest global economy behind the US, why relegate her to the BRICS group with Brazil, Russia, India, and South Africa?

In truth, while China holds the distinction of being the most populous nation in the world as well as one of the largest land-wise, her influence as a trade power did not come into prominence until as late as three decades ago. Following a lengthy period of economic reform that began after World War II, leaders merged certain capitalist ideals into the nation's communist structure - this, coupled with budget restrictions designed to reduce inflation, and gains in productivity, helped the economy grow. China earned a greater boost during the Clinton administration when the People's Republic received permanent "most favored nation" status with the US, and consequently entrance into the World Trade Organization (WTO).

While China, like many other countries, has suffered financially during recessions, yet careful planning that involved real estate and tax benefits for her people made for a strong recovery. Experts predict China could surpass the US as the largest global economy in the next decade.

Courtesy of Wikipedia

Main Exports of China

One might assume this list is long. Indeed, you can visit your favorite department store and perhaps eight of every ten items you buy is made in China. Indeed, with more than one-fifth of her total export production going to the United States, China offers a variety of goods from household goods to electronics. Top exports include:

Data Processing Equipment: For businesses and private organizations in need of devices to calculate, measure, and store data, China provides an array of equipment needs.

Textiles and Clothing: Apparel for retail shops - men's, women's, and children's clothing for all seasons is assembled and shipped regularly from the mainland.

Medical Equipment: Hospitals throughout the United States, Hong Kong, and Japan benefit from new innovations in Chinese medical equipment.

Electronic Equipment: Take a look at the devices you use on a daily basis - laptops to mobile phones, electronic book readers and portable music players, and you'll find at least one has origins in China.

Main Imports of China

While the United States receives the bulk of exports, only about eight percent of China's total import comes from the US. Japan sends the highest percentage of goods to the mainland, though the amount doesn't necessarily dominate over other trade partners like South Korea, Hong Kong, and Taiwan. Top imports to China include:

Oil: China depends upon fuel to keep the economy going, and while not an oil-rich country compared to top nations in this industry, they rely upon trade.

Metal and Ore: While China is a major resource of rare earth metals, there are specific ores needs to manufacture products that come in from Asian neighbors.

Plastics: What China exports in their numerous household goods and toys first comes into the country as raw material, including plastic.

Chemicals: Needed for equipment production, chemicals are imported from China's top trading partners.

Will China overtake the United States as the top global economy in the next ten years? It is possible, barring any financial or natural disasters like the recent Japan earthquake. With combined strategies that borrow from different economic platforms, China stands ready to achieve that goal.

Published Jul 07 2011, 07:54 PM by admin
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