Which factors could convey China to go as one of universe ‘s largest economic powers? Harmonizing to assorted articles, there are four points which could explicate clearly why China is emerged as a powerful economic. Those factors are:

China has the largest population and market in over the universe

Rich in resources and great location

Potential market for spread outing and developing

Government Policies is an indispensable component for the growing of China

This essay will show the indispensable factors and schemes promote China as one of the universe ‘s largest economic powers.


First of all, China is state has the biggest population and market in over the universe: is the largest developing state in pulling foreign direct investing from abroad.

It is no uncertainty to reason that China is a state has the most crowded population in around the universe. With population is estimated around 1.3 1000000s. This is seemed as the possible benefit and challenge that Chinese authorities has to follow. As good they therefore must set up sensible schemes and programs for using this donee in developing a state ‘s economic. In fact, the velocity of population growing has significantly increased over two last decennaries.

One of the most advantages of China is low-priced location with lower 30 % of rewards than the other states. The Foreigner Companies tended to take China to put because of the inexpensive labour force.

In add-on, the immature population is proportionally bulk in entire. Thus, China has non merely advantage in using a immense labour force for fabrication. Chinese authorities had consistent programs in utilizing the immature immense.This is an of import key that push China as a biggest fabrication state that people often call as “ China is fabricating for the universe ” .For case, China produced up to 70 per centum of playthings in over the universe, tierce of baggage and a immense sum of footwear ( Grabmeier, 2004 ) .

Furthermore, in order to come in into the immense Chinese market, this is a ground why some developed states such as United States, Europe, Japan ; they are interested in sharing their engineering when they do run in China.

China besides is considered as a major client to devour goods and services. In peculiar, due to cheap labour force monetary value, China had got more competitory in bring forthing merchandises at a inexpensive monetary value. With the developing degree of engineering know-how, it helps to the faster of the growing of China ‘s economic system, therefore the Chinese manufacturers can be easy to bring forth merchandises with lower monetary value but still maintain high quality, for illustration, luxury cars are high – tech goods with inexpensive monetary value in China ( Grabmeier, 2004 ) .

Second, a state has abundant and diversified natural resources and stand in convenience location and geographic for trading

China is one of the biggest national in over the universe. It comprises abundant and diversified natural resources that they can research and develop for intent of developing industry and economic. Harmonizing to KPMG ( 2009 ) , Petrol – Gas and Coal are important resources which contribute to the economic growing of China.

Oil is one of the most of import merchandises than any other factor. However, the population of China is huge, leads to the deficiency of crude oil and gas which is supplied to domestic ingestion. Government has recognized that the natural resources have non unlimited. Consequently, they have schemes to put offshore such as air current energy, solar energy to make the security modesty mineral to run into the demand of national developing economic

Besides, the Government has some schemes to back up betterment on the bring forthing of new oil and gas merchandises. The effectual scheme is that the Government has invited to international foreign companies to co-operate with the domestic oil companies in production.

Additionally, the alien companies are besides encouraged to put in gas and coal production. As the cogent evidence for above issue, many foreign investors are attracted because of the duties and barriers which are imposed on merchandises are removed with the deregulating on regulation of investing since the state joint WTO. As the consequence, through the norm of militias and production scheme, Petro China ( an Oil corporation of China ) became the largest manufacturer of natural gas comparison to the other oil big leagues in 2007 ( KPMG, 2009 ) .

China is besides known as the universe ‘s 2nd largest energy consumer and one of the universe ‘s largest energy importers. By the meeting with other states, China has become the universe ‘s largest oil investors. For illustration, to guarantee that provide enough gas for local ingestion, the understanding between China and Australia presented that Australia will provide the natural gas to China over 25 old ages, in return which receive US $ 21 billion from China ( Zhang, 2004 ) .

Furthermore, Chinese authorities has besides invested 1000000s of dollars in Africa part to research and develop mineral that specify as gasoline and coal. To guarantee that supplying adequate natural stuffs which functioning for its industrial machine, China to a great extent invested in America and Africa from $ 1.8 billion in 2003 to $ 16.1 billion in 2006

Due to a natural geographic and location in Asia, China is standing about to the most developed states in Asia Pacific, such as Japan, Korea, Hong Kong and Singapore. They get many benefits in trading and interchanging goods to abroad by sea path. Furthermore, China besides gets convenience in corporate and trading with states in South East Asia. As recognized those advantages, Chinese authorities has conducted Free Trade Agreement ( FTA ) with other spouses. Following these Free Trade Agreement, China can spread out their net work relationship with many different states over the universe, therefore it leads to they can be easier to merchandise into international market by cut downing on duties and trade barriers. For illustration, through the FTA between China and ASEAN, this facilitates the Chinese manufacturers expand their merchandises to consumers in Southeast Asia everyday and cut down the transits cost.

Third, this is a biggest market which has highly possible benefit for spread outing and developing

Equally shortly as possible, foreign investors realized that China has highly possible benefit for spread outing and developing the domestic market as the largest consumer market of universe, illustrate with around 1.3 billion people. That is explained for China has the largest graduated table when pulling foreign direct investing for over a last decennary. China has passed United America in accomplishing Buying Power Parity ( PPP ) . The Chinese economic system has improved 10.3 % from the last twelvemonth and China had maintained a high GDP grow as 9.30 % from 1989 until 2010.

Finally, the right leading and policies of Chinese Government is besides an indispensable key and has contributed to the growing of China.

In the nineteenth century, China was controlled by many unequal pacts of Western capitalist economy. By wars, US applied their economic power that forces to “ open up ” the Chinese market and the civil war appeared in 1945-1949, therefore the Chinese Government had lost their sovereignty and economic growing was distorted and restrained by imperialist domination ( Lotta, 2008 ) .

However, the Chinese Communist revolution in 1949 – after two decennaries of contending a bloody civil war, led by laminitis Mao Tse-Tung, they captured the concluding pieces of mainland China and wholly changed all destiny of China. Lotta ( 2008 ) stated that under Mao ‘s leading, China built their ego – dependant and began to open for a new page of China. The foundations of bureaucrat-capitalist regulation and exploitative of foreign landlord was putted down. In order to accomplish the balanced development of economic system, some modern industrial base and new substructure such as conveyance and power Stationss was concentrated. Industry and agribusiness were rapidly expanded from towns to small towns. Furthermore, the Government non merely focused on the development of wellness services and instruction which are supplied at low cost, but besides supported to the betterment of labour ‘s accomplishment.

On the other manus, Deng Xiaoping ‘s government with open-door policy since 1987, has putted back Mao ‘s ideological. The open-door policy of Deng presented that China will take to open trade with the outside states. Deng besides realized that the modernisation is really imperative. Therefore, based on China ‘s foreign policy, Zhang ( 2004 ) showed that China has allowed and attracted foreign investing and sharing engineering cognize how from the West which is really utile for modernisation plan of Deng.

Through the modernisation plan, the relationship between China and other states is bettering twenty-four hours by twenty-four hours, more stable and collaborate together ; it leads to corroborating the place of China in over the universe. In peculiar with China ‘s neighbours in East Asia, they realized that trading with China is a great chance, the trade volumes between these states and China dramatically increased over the past decennary and directed consequence to the fast turning domestic market of China, particularly when China became a member of WTO and ASEAN ( Zhang, 2004 ) .

In to boot, one of the most of import factors of modernisation plan is decentalisation. As reference above, Chinese Government pointed that pulling more foreign capital is necessary. Therefore, to do certain the eloquence of this program, China requires puting up a political stableness in society and the economic system ( Lotta, 2008 ) . Consequently, today, non merely the Government but besides local concern, they have spread their contact to about over 20 states, affecting ace power states such as India, Japan and Russia. Based on this scheme combine with the good relationship with other states, their Chinese concern can be easier to develop their trade over cross lodger over the universe, therefore they have contributed a batch of financess to Government and from these financess, the Government has used to increase the public services such as new substructure, high-technology wellness services and instruction. This leads to the increasing of GDP and betterment of the Chinese criterion life every bit good.

Furthermore, in universe currency and fiscal markets, China is known as an of import factor. Today, China has exceeded Japan and became the largest holder of foreign exchange reserved. Harmonizing to Lotta ( 2008 ) , the foreign exchange militias of China have reached to $ 1.8 trillion which gaining from export and other investing net incomes ; for illustration, invested in US exchequer securities, US authorities bureau debt and other fiscal instrument which based on USD Dollars ‘ value. Furthermore, China ‘s dollar now is keeping the of import place in the universe imperialist economic system. The US has big sum trade shortages ( loss in net export ) and spent a batch for Government outgo, therefore in order to cover the balance of payment and finance its debt, the US borrows many of sums of capital. And, by purchasing big sums of US exchequer securities and authorities bureau debt, so this is a ground why the U.S depends on states like China ( Lotta, 2008 ) .


In decision, with many advantages such as inexpensive labour force, rich in nature resource and many opened policies which could pull foreigner investors, China has become a powerful economic rapidly. Just in a short period of clip, GDP of China has increased significantly which has encouraged both authorities and all Chinese to go on force up the economic. Furthermore, Chinese market is an attractive market for other states to put and acquire in, that leads to many different engineering industries have been developed here.