China’s Economic

Growth
 BUSINESS SCHOOL
Communication Skills
Final Project
China’s Economic Growth

Submitted by:
Moater Imran L1S19BBAM0137
Feriha Shahzad L1S19BBAM0168
Hassan Raza L1S19BBAM0133
M.Noman Ali L1S19BBAM0156
Submitted to:
Ms. Paras Akhtar

University of Central Punjab, Lahore

BUSINESS SCHOOL
Communication Skills
Final Project
China’s Economic Growth

Submitted by:
Moater Imran L1S19BBAM0137
Feriha Shahzad L1S19BBAM0168
Hassan Raza L1S19BBAM0133
M.Noman Ali L1S19BBAM0156
 Submitted to:
Ms. Paras Akhtar

University of Central Punjab, Lahore

BUSINESS SCHOOL
Communication Skills
Final Project
China’s Economic Growth

Submitted by:
Moater Imran L1S19BBAM0137
Feriha Shahzad L1S19BBAM0168
Hassan Raza L1S19BBAM0133
M.Noman Ali L1S19BBAM0156
Submitted to:
Ms. Paras Akhtar

University of Central Punjab, Lahore

BUSINESS SCHOOL
Communication Skills
Final Project
 China’s Economic Growth

Submitted by:
Moater Imran L1S19BBAM0137
Feriha Shahzad L1S19BBAM0168
Hassan Raza L1S19BBAM0133
M.Noman Ali L1S19BBAM0156
Submitted to:
Ms. Paras Akhtar

University of Central Punjab, Lahore

INTRODUCTION

China is a unitary one-party socialist republic and is one of the few existing socialist states. Since
the introduction of economic reforms in 1978, china's economy has been one of the world's fastest-growing
with annual growth rates consistently above 6 percent.
The people's republic of china is a country with a long history and ancient civilization.
The ancient china era was c. 1600–221 bc. The imperial era was 221 bc – 1912 ad, from china's unification
under qin rule until the end of the qing dynasty, the republic of china era was from 1912 until 1949, and the
modern china era from 1949 until the present day
Much of traditional Chinese culture, literature and philosophy first developed during those troubled times. In
221 bc, qin shi huang conquered the various warring states and created for himself the title of huangdi or
"emperor" of the qin, marking the beginning of imperial china.

HISTORY
Economists generally attribute much of china's rapid economic growth to two main factors: large-scale capital
investment (financed by large domestic savings and foreign investment) and rapid productivity growth. These
two factors appear to have gone together hand in hand.
The economic history of china describes the changes and developments in china's economy from the founding
of the people’s Republic of China (prc) in 1949 to the present day. 
China has been the fastest growing economy in the world since the 1980s, with an average annual growth rate
of 10% from 1978 to 2005, based on government statistics. Its gdp reached $usd 21 rupees in 2005. 
China’s mind-blowing growth in the last 3 decades has surprised the world. Today, all the big factories are
establishing their manufacturing plants in china, making it the world’s leading economic superpower. 
Till 1978, it was one of the least developed nations of the world.
With a growth rate of 10% in the last 3 decades, china lifted more than 80 crores (800 million) people out of
poverty. 

In 1987, china's per capita GDP was $155, which rose to $7590 in 2014.
China manufactures world’s 80% air-conditioners, 70% mobile phones, 60% shoes, 74% solar cells, 60%
cement, 45% ships, and 50% steel.
With a gdp of $23.25 trillion, the Chinese economy has emerged as the 2nd largest economy in the world. 
In the past 69 years, china has witnessed tremendous progress with the country becoming the world’s second-
largest economy wherein lives of around two billion people have significantly improved.
In Pakistan, the china Pakistan economic corridor (cpec) is regarded as a game changer that is going to bring
economic stability in both countries and generate employment for the people especially the skilled youth.
All of us know that china has been Pakistan all-weather friend and the closest of a strategic partner which has
always stood the test of time.
The modern period of china explores china’s transformation from an empire to a nation; its dramatic encounter
with the era of imperialism; the rise of alternative models for a modern china; and the prospects for Chinese
leadership in the 21st century.
As china expands its reach around the world, its power also is growing in its own backyard. The united states of
america (usa) exerts considerably less influence than it used to in southeast asia, and china is increasingly filling
that role, even in countries that were once firmly anti-communist.
China’s influence steadily expands around the globe, the country faces the public relations challenge of
ensuring that the rest of the world sees it in a favourable prism. It hopes to accomplish this goal through the use
of ‘soft power’ by exporting its culture.

Factors of rapid economic growth

China's rapid path to economic development is well documented and while growth rates seem to be slowing,
there is no doubt that China's economy plays a pivotal role in the world economy. China initially pursued an
export-oriented path to industrialisation similar to the preceding Asian Tigers but has started to diversify into
other economic sectors in the last ten years. It did so with an unwavering determination to speed up growth rates
and expand its economic reach. There are some factors explaining the rapid economic growth of China
 Unemployment and Wages
 Female participation in the workforce
 Political System and strong leadership
  Export led growth
 Investment in infrastructure
 Education

Unemployment and Wages

The unemployment rate has fallen to just over 4 per cent in recent years, but high rates have reduced incomes in
the past. When employees are seeking higher pay, there are even more who will be taking open jobs. Wages
gain up to 10 times more in other East Asian countries than the Chinese jobs. When American , European, and
Japanese companies open factories under license in China, this has raised profit margins and attracted inward
FDI (Foreign Direct Investment).

Female participation in the workforce

A higher than average female participation in the manufacturing sector characterizes China's workforce.
Western cultural analyzes of labor force gender divisions are of little relevance to Chinese economic growth.
This, along with the one-child policy that has ensured that women have been active in child-raising for a far
shorter time than in many other countries, has made possible a far larger workforce.

Political System and strong leadership

The non-democratic and authoritarian political regime in China has made it possible to embrace free market
economies in Western style while maintaining control over the political system. China's planned economy
(where the state controls economic activity rather than private business) has stimulated economic development
in many ways, as all decision-making is dominated by the government. The government has followed a series of
Five Year Plans .The country is now in its 12th Five Year Plan and policies include spending 2.2% of GDP on
R&D (Research and Development) and moving coastal regions from being ‘the world’s factory’ to being hubs
of R&D, top-end specialist manufacturing and services. It is said that Chinese politicians have more of a duty to
the country than to themselves. Strong state leadership has been a major contributing factor to economic
growth.

Export-Led growth
That is the strategy that China pursued initially. The strategy is beginning to be phased out in favor of the
industrialization of import substitution by which consumer products imported for China's growing middle class,
such as cars, domestic white goods and house and office furniture, are increasingly being produced in China.

Investment in infrastructure
The government has built many new roads, improved the rail system and made China’s major rivers navigable
all year round. China has five of the ten largest container ports in the world (including Shanghai and Shenzhen).
Urbanisation has also been encouraged. with a robust urban-construction programme.

Education
China level of literacy have risen dramatically over the past 20 years and now stand at 95%. It has promoted the
economic development of the country. As a result, China has both large numbers of unskilled workers and a
growing number of highly skilled workers. For example, China trains 600,000 new engineers every year. 

Advantages

Economic growth also has many advantages

 China’s economic growth has provided millions of workers better paying and more productive jobs.
  The poverty in china has reduced only 3.3% population lives below the poverty line.
 The costs of industrial items and advanced electronics dropped sharply. This enabled rich countries to
spend more on services, and greatly improve their quality of life.
 China has huge Trade surplus.
 Growth is making China a world economic leader. The world's biggest producer of aluminum and Steel.
 Chinese tech companies quickly became market leaders. Huawei is the world's top cellular-equipment
maker. It is quickly becoming a world leader in developing 5G technology. Lenovo is a world-class
maker of personal computers. Xiaomi is one of China's top smartphone brands.

Disadvantages

There are also have some advantages. Some are as follows

 Interest rates have been low, so families don't receive much return on their savings. As a result, they
don't spend much. That keep domestic demand low and slows growth.
 China does not offer benefits to those who have moved from the farms to the cites for work.
 Local governments are charged with providing social services but aren't allowed to tax to fund them. As
a result, families are forced to save.
 Almost 60% of the population lived in urban areas. Because most of the jobs are there, which cause
pollution in the urban areas.

Conclusion
China's has improved its economy so rapidly by adopting useful strategies. The history of Chinese development has been
described that how they became the one of the most successful country in the world. China has the greatest population
in the world and they utilized it by putting maximum manpower for the maximum production.  China is a developing
country with a population of nearly 1.3 billion and is faced with numerous difficulties. Its per capita GDP ranks only
111th in the world. It requires the unremitting efforts of generations to come in order to achieve development,
rejuvenation, modernization and the common prosperity of all the Chinese people. In this historical process, China needs
both internal stability and a peaceful international environment. The Chinese people will unswervingly adhere to the
central task of economic development, which is top priority, and resolve all problems through development. At the same
time, the Chinese people will also unswervingly uphold peace and cooperation in their foreign policy, and work with all
peoples to promote the lofty cause of peace and development. China has a great export; Chinese products are being
used almost in every country of the world. China is popular for the great leadership and unity. With rapid economic
growth, China’s market has kept expanding, and its contribution to the world’s economic growth is on the rise. China
Nominal GDP: $14.14 trillion - China GDP (PPP): $27.31 trillion.

China has experienced exponential growth over the past few decades, breaking the barriers of a centrally-planned
closed economy to evolve into a manufacturing and exporting hub of the world. China is often referred to as the
"world's factory," given its huge manufacturing and export base. However, over the years, the role of services has
gradually increased and that of manufacturing as a contributor to GDP has declined relatively. Back in 1980, China was
the seventh-largest economy, with a GDP of $305.35 billion, while the size of the U.S. then was $2.86 trillion. Since it
initiated market reforms in 1978, the Asian giant has seen an economic growth averaging 10% annually. In recent years,
the pace of growth has slowed, although it remains high in comparison to its peer nations. 

The IMF projects a growth of 5.8% in 2020, which would sober down to around 5.6% by 2023. Over the years, the
difference in the size of the Chinese and the U.S. economy has been shrinking rapidly. In 2018, the Chinese GDP in
nominal terms stood at $13.37 trillion, lower than the U.S. by $7.21 trillion. In 2020, the gap is expected to reduce to
$7.05 trillion, and by 2023, the difference would be $5.47 trillion. In terms of GDP in PPP, China is the largest economy,
with a GDP (PPP) of $25.27 trillion. By 2023, China's GDP (PPP) would be $36.99 trillion. China's huge population brings
down its GDP per capita to $10,100 (seventieth position). China accounted for over one third of the increase in the
world’s total imports, contributing more to the growth of world trade.

Today Covid-19 is the biggest challenge for the whole world, it actually started from the china and the spread in all over
the world but being a strong nation china has controlled the situation while the whole world is still fighting.