ANALYSE THE WIDER IMPACT(S) UPON THE WORLD ECONOMY OF THE RISE OF THE Essay

ANALYSE THE WIDER IMPACT(S) UPON THE WORLD ECONOMY OF THE RISE OF THE IMPORTANCE OF CHINA - Essay Example On the other hand, economic growth is always accompanied with military power advancement (Perkins 2009). China invests highly in military power and therefore makes future security levels unpredictable since no one is sure of how the nation will use its power if by any chance it happens to be the world’s most powerful nations. Therefore, since China’s growth is progressive and promising, the rest of the world ought to be ready for the expected advanced impact. Export of both products and labour as well as foreign direct investments makes the greatest percentage of Chinese GDP growth. The implication is that China’s economy greatly depends on its relation with other economies. To China, the overdependence on exports pose minimal threat if any, given that China does not only enjoy competitive advantage over other economies but also has a government policy that supports foreign relations. Notably, China’s initial economic bump up recorded in early 1970’s was attributed to internal factors with negligible dependence on exports. As matter o fact, this initial economic growth resulted from increase in domestic consumption and government expenditure (Zhu & Kotz 2010). China is densely populated and thus provides a reliable market for its manufacturing products. Notably, the increased domestic consumption resulted from a transformation of Chinese economy from agricultural nation to an industrial economy, but maintained a some how closed economy. By then, China’s growth had little or no economic impact on the global economy. The rapid growth in GDP provoked an urge for extra market and hence led to the incorporation of ‘market reform’ policy in 1978 (Zhu & Kotz 2010). This policy saw China enter the global market in search for market of their excess production. China might not be well endowed with capital, as