China is known as the most dynamic and fast growing economy, with its 4th largest GDP size in the world. Yet, her trade dependency now surpasses over 80% of GDP and thus she cannot survive literally without producing and trading with the outside world...
China is known as the most dynamic and fast growing economy, with its 4th largest GDP size in the world. Yet, her trade dependency now surpasses over 80% of GDP and thus she cannot survive literally without producing and trading with the outside world. One aspect of this outcome is the fact that her trading countries themselves have also fallen into a trap of the so-called 'China effect,' that is, other countries as well are influenced by the fluctuations of China's economic situations. For example, for Korea alone, China is the largest total trading partner, export market, balance of payment surplus country, and investment host country.
In 2001 China also joined WTO and so confirmed her willingness to remain in the open world economic system. However, this story of China's economic growth also contains many instable factors, thus often named as 'national crises' or 'time bomb' by many critics of China's political economy. Therefore, this paper will focus on those crises factors rather in detail, thereby emphasize the importance of political values in socio-economic stability and social development. It will also discuss many aspects of China's newly introduced policies of 'balanced society model' of social development.
In conclusion, China's future road map should be placed more on political values rather than solely on economic growth, since China's economic soft-landing is a key element of the stable world economy and also the regional stability in Northeast Asia.