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China become the second largest economy in the world

Discussion in 'International Forum' started by Somi, Aug 17, 2010.

  1. S

    Somi JF-Expert Member

    Aug 17, 2010
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    China Passes Japan as Second-Largest Economy
    Source: The New York Times

    SHANGHAI — After three decades of spectacular growth, China passed Japan in the second quarter to become the world’s second-largest economy behind the United States, according to government figures released early Monday.

    The milestone, though anticipated for some time, is the most striking evidence yet that China’s ascendance is for real and that the rest of the world will have to reckon with a new economic superpower.

    The recognition came early Monday, when Tokyo said that Japan’s economy was valued at about $1.28 trillion in the second quarter, slightly below China’s $1.33 trillion. Japan’s economy grew 0.4 percent in the quarter, Tokyo said, substantially less than forecast. That weakness suggests that China’s economy will race past Japan’s for the full year.

    Experts say unseating Japan — and in recent years passing Germany, France and Great Britain — underscores China’s growing clout and bolsters forecasts that China will pass the United States as the world’s biggest economy as early as 2030. America’s gross domestic product was about $14 trillion in 2009.

    “This has enormous significance,” said Nicholas R. Lardy, an economist at the Peterson Institute for International Economics. “It reconfirms what’s been happening for the better part of a decade: China has been eclipsing Japan economically. For everyone in China’s region, they’re now the biggest trading partner rather than the U.S. or Japan.”

    For Japan, whose economy has been stagnating for more than a decade, the figures reflect a decline in economic and political power. Japan has had the world’s second-largest economy for much of the last four decades, according to the World Bank. And during the 1980s, there was even talk about Japan’s economy some day overtaking that of the United States.

    But while Japan’s economy is mature and its population quickly aging, China is in the throes of urbanization and is far from developed, analysts say, meaning it has a much lower standard of living, as well as a lot more room to grow. Just five years ago, China’s gross domestic product was about $2.3 trillion, about half of Japan’s.

    This country has roughly the same land mass as the United States, but it is burdened with a fifth of the world’s population and insufficient resources.

    Its per capita income is more on a par with those of impoverished nations like Algeria, El Salvador and Albania — which, along with China, are close to $3,600 — than that of the United States, where it is about $46,000.

    Yet there is little disputing that under the direction of the Communist Party, China has begun to reshape the way the global economy functions by virtue of its growing dominance of trade, its huge hoard of foreign exchange reserves and United States government debt and its voracious appetite for oil, coal, iron ore and other natural resources.

    China is already a major driver of global growth. The country’s leaders have grown more confident on the international stage and have begun to assert greater influence in Asia, Africa and Latin America, with things like special trade agreements and multibillion dollar resource deals.

    “They’re exerting a lot of influence on the global economy and becoming dominant in Asia,” said Eswar S. Prasad, a professor of trade policy at Cornell and former head of the International Monetary Fund’s China division. “A lot of other economies in the region are essentially riding on China’s coat tails, and this is remarkable for an economy with a low per capita income.”

    In Japan, the mood was one of resignation. Though increasingly eclipsed by Beijing on the world stage, Japan has benefited from a booming China, initially by businesses moving production there to take advantage of lower wages and, as local incomes have risen, by tapping a large and increasingly lucrative market for Japanese goods.

    Beijing is also beginning to shape global dialogues on a range of issues, analysts said; for instance, last year it asserted that the dollar must be phased out as the world’s primary reserve currency.

    And while the United States and the European Union are struggling to grow in the wake of the worst economic crisis in decades, China has continued to climb up the economic league tables by investing heavily in infrastructure and backing a $586 billion stimulus plan.

    This year, although growth has begun to moderate a bit, China’s economy is forecast to expand about 10 percent — continuing a remarkable three-decade streak of double-digit growth.

    “This is just the beginning,” said Wang Tao, an economist at UBS in Beijing. “China is still a developing country. So it has a lot of room to grow. And China has the biggest impact on commodity prices — in Russia, India, Australia and Latin America.”

    There are huge challenges ahead, though. Economists say that China’s economy is too heavily dependent on exports and investment and that it needs to encourage greater domestic consumption — something China has struggled to do.

    The country’s largely state-run banks have recently been criticized for lending far too aggressively in the last year while shifting some loans off their balance sheet to disguise lending and evade rules meant to curtail lending growth.

    China is also locked in a fierce debate over its currency policy, with the United States, European Union and others accusing Beijing of keeping the Chinese currency, the renminbi, artificially low to bolster exports — leading to huge trade surpluses for China but major bilateral trade deficits for the United States and the European Union. China says that its currency is not substantially undervalued and that it is moving ahead with currency reform.

    Regardless, China’s rapid growth suggests that it will continue to compete fiercely with the United States and Europe for natural resources but also offer big opportunities for companies eager to tap its market.

    Although its economy is still only one-third the size of the American economy, China passed the United States last year to become the world’s largest market for passenger vehicles. China also passed Germany last year to become the world’s biggest exporter.

    Global companies like Caterpillar, General Electric, General Motors and Siemens — as well as scores of others — are making a more aggressive push into China, in some cases moving research and development centers here.

    Some analysts, though, say that while China is eager to assert itself as a financial and economic power — and to push its state companies to “go global” — it is reluctant to play a greater role in the debate over climate change or how to slow the growth of greenhouse gases.

    China passed the United States in 2006 to become the world’s largest emitter of greenhouse gases, which scientists link to global warming. But China also has an ambitious program to cut the energy it uses for each unit of economic output by 20 percent by the end of 2010, compared to 2006.

    Assessing what China’s newfound clout means, though, is complicated. While the country is still relatively poor per capita, it has an authoritarian government that is capable of taking decisive action — to stimulate the economy, build new projects and invest in specific industries.

    That, Mr. Lardy at the Peterson Institute said, gives the country unusual power. “China is already the primary determiner of the price of virtually every major commodity,” he said. “And the Chinese government can be much more decisive in allocating resources in a way that other governments of this level of per capita income cannot.”
  2. RedDevil

    RedDevil JF-Expert Member

    Aug 17, 2010
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    Wachina tunawapa sisi waafrica utajiri woote. Angalia mchina anavyouza bidhaa kama karanga kila kona mchina. Acha aende mbele labda nasisi tutapaa, but mwizi ni mwizi tu.
  3. Mtazamaji

    Mtazamaji JF-Expert Member

    Aug 17, 2010
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    He he hehe Wale wanaponda sijui bidhaa za china feki wakiangalia big picture wanaweza kuona. Hizo bidhaa zinazoitwa fake pia zina mchango.

    Tujiulize maswali haya . kwa nini
    • Toyota hawana japo ka assembly plant ka oil filter dar
    • Rahisi kuwa na kiwanda cha nguo zinazoitwa fake kama Levis, DG etc china na si Tanzania
    • Nokia wana kiwanda China na Sio UK au Canada
    • iwe rahisi kuzalisha bidhaa za ngozi china na sio africa
  4. Sniper

    Sniper JF-Expert Member

    Aug 22, 2010
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    China already leads. America led the world into the financial crisis and China is leading the world out of it. That's the changing of the leader right there. For Americans, leadership is through military power but that's not as relevant to the Chinese. Chinese are all about the economy. Military is relevant for the Chinese only to secure their border and reclaim borderlands. It's to finish the work that Mao couldn't in building the nation and to keep peace on the borders so the economy can flourish.​

    KUNANI PALE TGA Senior Member

    Aug 22, 2010
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    duh,sis waafrika kwa kuponda tumejaaliwa.haya kama wao wantengenza feki,mbona wewe mwafrika umeshindwa?tengenza hiyo feki na tukuone.sasa kwa taarifa yako wewe red devil,ambaye umeishia dar tu,hujatoka nje ya tanzania,wachina wana bidha bora kuliko hata marekani.hizo mnazonunua feki ni kwa ajili yenu,waafrika walalahoi.kama akikutengenezea bidha quality,unauwezo wa kununua?kwanza mshukuru mchina,hizo nguo unazovaa amekutengenezea kwa bei rahisi ili uvae.ukitaka quality mzee utatembea uchi.acha kuponda,wenzetu wana chapa kazi,siyo wavivu kama waafrika,kila siku ni kuwaza kula na starehe.mchina anathamini kazi,na kazi ni kama mungu kwake.sasa marekani nguo anazo vaa za quality zote zinatoka huku china.huku kwao wenyewe wanavaa nguo za quality,siyo ambayo metengenezewa nyie wavivu.utanisamehe kwa lugha kali,lakini hiyo ndio ukweli.acha kulalamika,jiulize wewe leo umefanya kitu gani cha maana siku nzima?acjha kuponda,fanya kazi,siyo kila siku story tu.
  6. Joss

    Joss JF-Expert Member

    Aug 22, 2010
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    Wachina wanakutengenezea bidhaa kulingana na uwezo wako mnunuaji.Wananchi wengi wa china ni masikini,hivyo kulingana na sera yao ya ujamaa,wanatengeneza bidhaa zenye viwango tofauti kwa bei tofauti ili kila mtu aweze kumudu.Na kwa hapa China ukienda dukani unaambiwa hii ni feki na hii ni original,hawakufichi kwa sababu kwao ni jambo la kawaida.Mwenye hela anunue tv kwa dola 1000 atumie mpaka achoke,asiye na kiasi hicho anunue kama hiyo lakini ubora mdogo kwa dola 250 atumie miezi nane aaanze kupeleka kwa fundi.Tatizo ni kuwa wafanya biashara wa Kiafrika wanapokuja kununua bidhaa hununua za bei ndogo(feki) na kuja kuziuza kama vile ni original,kwa uroho wa utajiri.Wafanya biashara wengi wa Afrika wanakimbilia Guanzhou kununu vitu,mahali ambapo ndo soko la bidhaa za Afrika(duni).Wazungu hununua kutoka viwanda na makampuni yaliyopo Shanghai na Miji mingine.
    Kwa taarifa tu China ni mshirika mkubwa wa Marekani katika biashara na bidhaa zake zinanunuliwa sana huko pamoja na Ulaya.
  7. c

    chama JF-Expert Member

    Aug 23, 2010
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    many goverments around the word have complained smear tactics used by chinese government like undervaluation of chinese currency and poor quality, chinese people they can go far but will never last.
  8. eliakeem

    eliakeem JF-Expert Member

    Aug 23, 2010
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    I'm also worrying the foundation of Chinese economy. It looks perishable like goods they sell in developing countries like Africa.
  9. Tai Ngwilizi

    Tai Ngwilizi JF-Expert Member

    Aug 25, 2010
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    hizi biashara za fake wanazo fanya Africa mbona ni kitu kidogo tu kwa wachina.
    tusisahau kiasi cha bidhaa za viwango vya juu wachina wanazouzia nchi zilizoendelea
    there is plenty of cheap labour in China, sababu mojawapo ya watu kufunga au kushrink viwanda vyao western countries na kuhamishia China
    pamoja na yote hayo, bado wachina na massive population waliyo nayo bado wana long way to go...uchumi unakuwa lakini maisha ya majority rural Chinese are still in limbo, tofauti ya maisha ya majiji na vijiji bado ni kubwa
  10. D

    Dick JF-Expert Member

    Aug 25, 2010
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    Wanastahili. Ni hardworkers, ukifisadi chochote unapigwa risasi hadharani, wameweka miongozo mingi mizuri na kuisimamia. Big up niho!
  11. S

    Somi JF-Expert Member

    Aug 26, 2010
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    Wachina wakitengeneza kitu imara wanaweza, mfano reli kutoka daressalaam mpaka kapiri mposhi zambia jinsi ilivyoweza kudumu tangu 1976 hutakisikia treni yake imeanguka na matatizo madogomadogo yanatokea mara chache sana kwenye hii reli.