IMF: China, the First Economic Superpower in the World
- Written by: Editor
- Posted: 2017-08-03
According to the latest figures of the IMF, China has become the first superpower in the world, putting the USA in second place for the first time in 142 years. This is due to the transformation of the Chinese economy into a manufacturing and exporting hub over the last decades. China has witnessed a major economic growth, averaging 10% annually. The Chinese economy is worth 17.6 trillion dollars, while the American one reaches 17.4 trillion dollars. Our lawyers in China can tell you more about the legislation concerning investments in the local economy.
Factors contributing to China's rise to world economic superpower
IMF, one of the most prestigious financial institutions in the world, has ranked China as the first economic power in the world. This assertion was made upon the purchasing power parity of GDP indicator. According to the business consultants in China and financial experts, China's rise to the economic superpower is due to several factors. These include the following:
• International trade orientation – China changes its self-sufficient policy with export orientation. The energy sector (natural gas and non-fossil fuels) was pivotal to the growth of the Chinese economy;
• Growth rate performance – China caught up the per capita income in only two decades, with an annual growth rate of 7%-10%;
• Macroeconomic management – during the great recession, China`s economy was able to maintain a low unemployment rate of only 4%. The local government implemented a series of macroeconomic, stability and efficacy measures which lead to China`s rise to economic superpower;
• Poverty reduction – a specific legislation for foreign investments was implemented, growth zones were developed and large investments in human capital were channeled by the authorities into the educational system.
The in-depth presentation about the legal provisions of the foreign investment legislation can be provided to you by Chinese lawyers.
Other factors explaining China's economic superpower
The experts at the IMF have signaled other features which lead to China's rise to economic superpower. The population policy provides one explanation for China`s long term growth potential and carrying capacity. The economic prosperity is closely linked to population policy, although the age distribution may represent a future problem. Another factor explaining China's shift as the world leading economic power is the renewable energy. Companies operating in the energy sector are able to satisfy 15% of China`s energy needs. The policies implemented by the local government managed to prevent environmental degradation and to substitute the fossil fuel by renewable energy.
Don't hesitate to contact our law firm in China for extensive information about the legal aspects related to the foreign investments in China and the major opportunities this country has in varied sectors.