Despite a history of conflict and competition, China and Japan share a contiguous geography and development models. China may also share Japan’s economic fate. China now has the world’s fastest-growing economy and is undergoing what has been described as a second industrial revolution. Nowadays, China is one of the world’s top exporters and is attracting record amounts of foreign investment. In turn, it is investing billions of dollars abroad.
China and Japan both countries use under-valued currencies to provide exporters with a competitive advantage. Exports were promoted at the expense of household income and consumption. As a member of the World Trade Organization, China benefits from access to foreign markets. But relations with trading partners have been strained over China’s huge trade surplus and the piracy of goods and encouraged high domestic savings rates, which was used to finance investment. China generated large trade surpluses which were invested overseas, primarily in US government securities, to avoid upward pressure on their currencies and to help finance purchases of their exports. Also used high levels of investment financed domestically to drive economic growth.
China’s Industry Overview
As the above chart helps us in analyzing the distribution of GDP consumption per sector in the economy, students can examine which sector is the most flourishing and this can also help students decide which sector of the economy would they like to get involved in, when considering jobs in the future. Since China is highly flourishing in Manufacturing that’s because they rely on their exports. Before whoever thought China, but now China is the one of the second largest economy and its expanding on a day to day basis.