What are the factors responsible for Tremendous Growth of China’s Economy?

In the 21^st century, there are two big Asian countries, namely, China and India have emerged as the prominent nations aspiring to come up as super economic power.

China :

China has started growing on this front since early Eighties, whereas, India has joined the race in the late Nineties. Both the countries have their relative position, importance, merits and demerits in the contemporary global economy.

Indeed, in comparison to India, China ha achieved remarkable success over the past two decades. China’s average growth rate of GDP is measured to be over 10 per cent, thus, recognised as the fastest-growing nation. India’s GDP growth rate in the current decade is around 6 per cent.

Today, in the Asia-Pacific Region, China has assumed the position of mighty regional super power, challenging the recognised leadership the recognised leadership of Japan. In the BRIC (Brazil, Russia, India and China) bloc of emerging big countries, China is definitely much advanced definitely much advanced and ahead.

China’s economic miracle is global achievements may be attributed to a number of factors, such as:

1. Cheap and hardworking labour.

2. High rate of capital accumulation.

3. Export-orientation. Remarkably a high rate of export.

4. Positive rate of the state and the government policy in stimulating industrialisation and growth. China has excelled in manufacturing.

5. Large-scale foreign direct investment (FDI).

6. High inner investment potentiality and resourcefulness conducive to growth.

7. Chinese Common Wealth. Since Chinese people have spread over many countries of the world and conducting trade and distributional channels, this network has helped, China to expand its exports at a faster rate.

8. China Price. China is capable of producing several electronic and manufactured goods at a much cheaper cost and price. China price is at least 30 per cent less than the normal global prices.

9. China also provides a big market to global exporters.

10. Large Reserves. China has accumulated a very large reserve due to its surplus BoP.