chinas economy

China's economy 

china is currently the second largest economy in the world behind the USA and by 2050 people are suggesting that they will be the largest . this economic growth has come from high amounts of government spending. 

chinas population sits at 1.34 billion (the highest populated country in the world) because of this they have issued a one baby rule where every family is only allowed one baby this is to reduce the over populated country. china is seen as an older population in comparison to india which is seen as a younger population.the hugely populated country also has a high pollution levels this is due to china being one of the highest importers of coal.

apart from these negative factors china has experienced high levels of growth over the past decade. they have experienced growth and booms in many different industries these include the car industry and the construction industry. China became the world’s largest automobile producer and market in 2009 with annual sales of nearly 14 million vehicles. The market continues to expand in 2010. In the first nine months of 2010, automobile production reached 13.08 million units, a 36.1 percent increase from a year ago. The China Association of Automobile Manufacturers (CAAM) raised its forecast for annual sales to reach a record 17 million this year, matching the highest annual total ever reached in the United States. Industry growth has been primarily driven by rising domestic demand stemming from rising incomes, a growing middle class, and by supportive industry policies from the Chinese government.

this graph demonstrates the significant growth in the production levels of motor vehicles.

China's construction industry has been a driving force behind the nation's economic growth ever since it was targeted during the reform period of the 1980s as one of the cornerstones of China's plan for modernisation. After nearly three decades, construction activity in China continues to boom (see chart below), with the industry's output currently representing 24% (USD 1.4 trillion) of China's GDP.

China's sustained demand for residential, industrial and infrastructural expansion has generated the need for a multitude of new construction projects. The number of Chinese households grew by 9% from 2005 to reach 420 million in 2010, corresponding with population growth and less extended family living units. Industrial output has also expanded dramatically, and infrastructure needs have multiplied. Other drivers such as rising real per capita incomes, greater urbanisation and more investment in fixed assets have propelled China's construction market to its current place as the world's second-largest, accounting for nearly 14% of the global market (see table below). By 2020 China's construction industry is expected to obtain the top spot at 19% of global construction output.

other points to be made about chinas economy is that their annual growth rate is about 8-9%,they are a command economic system which means it is mostly run by the government , they are also a mixed economy which means they are made up of public and private sectors , they have special economic zones which all have different laws , they put 8x more money into the construction industry compared to the UK , 9 % of the country are illiterand and a large amount live in poverty. 

however after all of this speedy growth many people are now saying that chinas growth is slowing down and maybe coming to a hault. this is after reports that manufacturing is down and so is exports. people are saying that the main problem with chinas economy is that produce way to much compared to what they consume which is causing their economic slowdown. however china have recognised this are are trying to face it by increasing there consumer demand they have done this by finding the balance between large city projects and rural area projects. due to this there economy has picked up 

another point that can be made from the chinese economy is that it is the stocks are falling this is because of credit tightening fears. in shanghai the sse index fell 5.4% over 1540 points below its 52 week high. financial stocks felly by 5% . in hong kong the hang seng closed down 2.22%.
it is also feared that china might be heading towards a credit crunch. however allthough chinas growth is slowing it is still alot higher than many countries.

china also experience many joint ventures, one of the most famous ones was the one between jaguar and land rover this allows china to make these types of cars. this will be in a plant in dubai and is expected to open in 2015. this joint venture has come from thge fact that JLR sales have risen in china by 80% in the past year.


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