ASSESS THE STRENGTHS AND WEAKNESSES OF CHINA'S ECONOMIC AND SOCIAL SYSTEM

  ASSESSMENT OF THE STRENGTHS AND WEAKNESSES OF CHINA’S ECONOMIC AND SOCIAL SYSTEM Student: Professor: Course title: Date: China is ranked second after U.S in terms of World economy by nominal GDP and purchasing power. In terms of growth, it is the fastest with the growth rate of 10% per annum over three decades. The country with the population of over one billion people is the second largest importer of goods and largest exporter in the world. On the basis of per capita, it was by nominal GDP ranked 87 and 91 in 2012(International Monetary Fund, 2012). The country is much industrialized especially in the coastal regions. The continual growth of the nation’s economy has necessitated more focus by the authorities on maintaining effective measures that enhance that growth (World Bank, 2012). Economic experts reiterate that the development gap between China and other emerging economies such as Argentina, Brazil and India could be attributed largely on China’s emphasis on infrastructure projects that are ambitious. While most of these emerging economies invest a paltry 2% to 6% of their GDP on infrastructure, China invests approximately 9% of its GDP on infrastructure. This substantial spending gap has enabled the economy of China to grow at almost optimal conditions while the Canadian economy for instance suffers from various development conditions such as poor infrastructure, mediocre schools, aging power grids and so on (Eckstein, 1976). The Renminbi, (RMB) also known as the Chinese Yuan (CNY) is the official currency for the people’s republic of China. The Chinese Yuan is subdivided into 100 fen or 10 Jiao. The Chinese Renmibi was in May 5th 2013 trading at 6.15635 against one U.S Dollar (X-rates, 2013). Recently, China has been known to extensively liberalize its economy. The country has departed from its counterparts in East Asia, which have their investment in foreign direct (FDI) so as to protect their domestic industry and the l...