Essay, Paragraph or Speech on “China – An Emerging Economy” Complete Essay, Speech for Class 10, Class 12 and Graduation and other classes.

China – An Emerging Economy

 For the past two decades, bosses have been chasing the Chinese Dream and finally the long march is reaping benefits. More than 450 U.S. companies surveyed by the American Chamber of Commerce, 68 % of them say that they are profitable, and 70 % say their China margins equal or exceed their global average. Before China’s entry into the World Trade Organization this would have been considered unthinkable five years ago.

China’s economy has been rising because of the importance of U.S. businesses focusing on the largest market in the world. Some of the biggest beneficiaries are the pioneering multinationals such as Proctor and Gamble, Motorola, and Haworth Co. If a company sticks it out in China the results can be remarkable. Of Motorola Inc.’s 31.3 billion in sales this past year China contributed 9% of them. Thanks to the mart products and marketing the Schaumberg based company is battling with Nokia Corp. to become the market leader in the cellular phone industry. Low cost exports from China, and its brainwork done at 16 labs.

China is set to become the world’s biggest economy by 2026 according to a poll conducted on behalf of the BBC.

A total of 41% of respondents in the BBC World Poll, powered by GMI, had China in top spot by 2026, 35% plumped for the US 10% chose Japan, and 6% favoured India. Participants were asked to nominate what they thought would be the biggest assets in the growth of the Chinese and Indian economies. The large populations of both were seen as being assets, even though some economists have said India may gain a bigger advantage from population size when the effects of China’s one-child policy start to have a greater impact. Labour costs were also significant assets for the two nations, according to the poll. In fact, recent data suggest that firms based in emerging economies have accounted for $862 billion of foreign direct investment in other countries over time. And, this amount of foreign direct investment from firms based in emerging economies is increasing each year. However, even though emerging market firms have become stronger and emerging country markets are becoming more attractive, such countries also often have institutional deficits.

China has evolved slowly toward more open markets. Its evolution started over 25 years ago but it still maintains forms of central control. While there have been criticisms of this slow evolution, China has been able to maintain institutional stability while simultaneously promoting economic development and growth.

Chinese firms, for the most part, have operated with the longer – term orientation and with the intent of building capabilities that allow them to compete in their local markets and foreign markets against other major corporations. Alternatively, Russian firms have operated with a much shorter range orientation. They have attempted to obtain the resources needed to survive but have not focused on the development of capabilities and the implementation of long- term strategies. Institutional stability has contributed greatly to China’s positive economic development. As a result, some refer to China as the mother of emerging markets and transition economies.

The Chinese Economy and Its Future

China’s current and future economic and industrial power has been recognized by many For example, China’s economic power is exemplified by the fact that it is expected to be the fifth largest source of outward foreign direct investment during 2004- 2007. In addition, China has become the largest global recipient of foreign direct investment in recent years. China has many resources, among those is a population of 1.3 billion people with many low- rage workers. As a result, it has become an attractive location for many large foreign manufacturers.

China now places a major emphasis on the development of technology realizing the importance it plays in economic development. For example, in a recent five- year period, China increased its annual R&D investment s as a percentage of its GDP by .279 percent. Additionally, China has developed 53 national technology development zones that provide support, tax reduction and other benefits to technology- based new ventures. In fact, China is currently the most R&D intense of emerging market countries and is seventh of all countries in the world. Because of these investment s and other forms of support for technology development, the number of technology ventures increased by almost 20,000 during the period 1996- 2003. Additionally, during this time period, the number of employees in such ventures more than tripled and annual sales revenues for these ventures increased by $227 billion.

Interestingly, China has also been the recipient of approximately 300 multinational corporations’ R&D facilities in recent years. This is due to primarily to the fact that multinational corporations want to develop products that are attractive to Chinese consumer s to tap into the large Chinese markets. But they also want to tap into the capabilities built in China over time in order to develop products that are also attractive in global markets. while there are many factors that have contributed to China’s economic growth rate, clearly, the investment in and development of technology have the potential to continue China’s economic development. China’s current economic growth rate is approximately 9 percent annually, which is impressive economic. Yet, China is a huge country and its economic development is not spread evenly across the country. Most of its economic growth has occurred in four regions along China’s gold coast. These regions include the Pearl River Delta, Yang Tze River Delta, Qingdau and Dalian. In these regions, the economic growth has averaged approximately 13.3 percent in recent years.

In addition, China must continue to build its internal equity capital market in order to provide the financial capital needed for economic development. To date, China has been able to balance the order needed with the change thereby providing a good environment for economic growth and development. However, China must continue to make the transition and changes while maintaining an appropriate balance of change and stability.