Such noticeable phenomenon of China’s mercurial success in economics and its impact on the world have left many observers being questioning and pondering what is going on. Under this process, China made its way to the top of the arena of global politics and the two changes that followed are the adjustment of the old trade routes and the alterations of the world politics.
Therefore, the infrastructural power of the Chinese economy is strong, its huge population, and middle class are the main reasons. With over 1. It is sufficient to say that 4 billion people in China represent a very large consumer market willing to pay for products and services within the country. The economy may mostly obtain some desired effect from such situation, which is called a demographic dividend or growth. There is a chance that a country will be able to demand for both home produced and imported products.
Moreover, China’s strategic capital inroads in infrastructure have contributed to a record economic growth in the country. Large-scale projects including Belt and Road Initiative and Made in China 2025 are mostly government-led, and the goal is through those projects to connect the regions, go Innovation and Industrial ability development of the country. Undoubtedly, China is, in a way, overtaking other countries thanks to activities of going ahead in last-generation technologies that are relevant to with manufacturing, communication and new energy high technologies.
The economic ascension of China in the global arena is now being further facilitated through its integration into the multilateral world trade and foreign investment. Placing China as the biggest service provider and the second largest consumer in the globe, it is a leading partner in global supply chains. This is the way by which not only the country stand to gain economically but also the whole world.
Along with the other factor, Chinese way of doing economy is also critical for the country’s prosperous scale. It considers itself as a state-led capitalistic economy with the market system of reforms in its back stage. By such three sectors as capital, workforce, and technology, China has prepared a good climate for innovation, entrepreneurship, and capital raising.
This would be the 1st challenge, but it will also bring a question in regard to the consequent rise of China’s geopolitical ambitions and impact on the global peace. In other words, the role of China in the global arena, as well as its political and economic clout, is still a matter of discussion between policymakers since there is balance of dominance cooperation, and geopolitical competition issues that China is presenting on the table.
The underlying of the economic-rising China is jointly composed of the advantageous demographic condition and its relational effects, i.e. a large number of people and their cultural impacts, the strategic direct investment and the market-oriented policy. To acquire the understanding of the new economic reality erupting due to the shift of the international economic platform, recognizing the reasons of China’s power must be the priority. It will also help the establishment of mutually beneficial relations between the world’s second-biggest economy.