become " big#$ economic power in " world
surpassing " United States of Ame'ca?
Alberto Marcet Domingo The Emergence of China in the 21st Century
• Aim The aim of the project, is by undergoing a deep analysis of China’s economy predict if it will in fact become the biggest economic power in the world surpassing the United States of America, which is today thelargest economy in the world.
• Overview of China in general The People’s Republic of China, commonly known as China, is the country with the largest population in the world with and estimate number of 1,338,612,968 people in 2010. It is debated wether it’s the 3rd or 4th largest country behind or in front of the United States of America with an area of 9,640,821 kilometers square. China is locatedin East Asia and is a single-party state, which is governed by the Communist Party of China. China is led by the president Hu Jintao. There are 22 provinces, ﬁve autonomous regions, four directly administered municipalities (Beijing, Tianjin, Shanghai and Chongqing, and two highly autonomous special administrative regions (Hong Kong and Macau). The ofﬁcial language is Standard Mandarin and thecapital is Beijing although the largest city in China is Shanghai. 92 per cent of the population comes from the ethnic group Han. Economically, China has the second largest GDP with a total of 10,084 trillion dollars, but is placed as the 99th country for the GDP per capita which is 7,518 dollars. The Human Development Index places China in the 89th position which is considered medium with a ratingof 0,.663 right above El Salvador. The currency used in China is the Chinese Yuan China has a constant history of over 4,000 years, and considered one of the world’s oldest civilizations. Before the 19th century, it possessed one of the most advanced societies and economies in the world, but through successive dynasties it missed the industrial revolution and began to decline. The 19th and 20thcentury damaged the country and its economy with imperialism, internal weakness and civil wars. For more than 6,000 years China’s political system was based on hereditary monarchies known as dynasties. The ﬁrst of these dynasties were the Xia and the Quin Dynasty, that ﬁrst uniﬁed China in 221 BC. The last dynasty was the Qing and ended in 1911 with the founding of the Republic of China by theKuomintang, the Chinese Nationalist Party. When the communist won the civil war in 1949, they established the People’s Republic of China present until today. Since 1978 with the introduction of market-based reforms, China has become the world’s fastest growing economy, the world’s largest exporter and the second largest importer of goods. China is the world’s second largest economy by both nominal GDPand by purchasing power parity as mentioned before.
• The economy of the People’s Republic of China Form the founding of the People’s Republic of China in 1949 until late 1978, the economy of the People’s Republic of China was very similar to the Soviet-style centrally planned economy. Mao Zedong instituted the “Great Leap Forward”, which was an economic and social campaign of the ChineseCommunist Party, reﬂected in planning decisions from 1958 to 1961, which aimed to use China’s vast population to rapidly transform the country from an agrarian economy into a modern communist society through the process of agriculturalization, industrialization, and collectivization. Private businesses and capitalism did not exist. With the death Mao Zedong came the end of the Cultural Revolution, andDeng Xiaoping took over the power of China and with the help of the new Chinese leadership, initiated reforms in the economy in order to create a maket-orientated mixed economy, with out abolishing the one-party rule, which meant that no other political parties were allowed. In 1978, China and Japan normalized their diplomatic relations and China started borrowing money from Japan in soft loans....