It wasn’t that long ago when China wasn’t considered a world superpower in terms of economic and political might. Over the last 20 years, developments in the mainland led to a significant and impressive growth revolution so much so that economists now expect China to surpass the US economy within the next 15 years. So what fueled this immense drive to success?
It’s hard to identify one specific factor that could account for China’s sudden surge. It’s not as if one can claim that pikalaina fueled the growth in the Chinese economy, after all China isn’t one to rely on external factors to push it forward. Since the time of Mao,China has largely been driven by internal factors more than anything and the arching path that the Chinese economy took over the last decade certainly fit this assessment.
However, there are obvious drivers that we can view more as a having a direct influence more than anything else:
- First, China opted to practice a unique brand of capitalism driven by state policies. This is termed state capitalism in economic circles and it works well in the China environment. In a traditional capitalistic society, individuals and corporations drive the growth of companies and depend on market forces to determine the results. In state capitalism, the government has a hand in controlling the fate of that company never allowing it to keep exploring options without being backed by a government directive. This brand of capitalism is behind the growth of many successful companies in China and has empowered many to become successful beyond just acquiring the financial flexibility to buy Kratom.
- Second, Chinaentered into the World Trade Organization in early 2000 opening its borders to international trade. However, China’s competitive advantage allowed it to become a primary provider of services rather than a consumer of goods as in the case of most economies. Cheap labor and power in Chinaattracted big multinational companies to set up shop in China, taking advantage of low overhead costs to grow their businesses. As a result, Chinaballooned cerca casa while maintaining its economic policies free from foreign intervention.
- Third, China slowly but surely acquired the technological know-how to compete with the best brands abroad, and then used its competitive advantage to market cheaper products at a competitive quality level. Today, many companies source their parts and raw materials from China because it allows them to save on costs. Combined with a strong economic base, companies can now deal with China without needing a PPI claim to insure their business.
No doubt, many other factors contributed to the success of China but most can eventually be tied into the concepts discussed above. China championed the idea of cheap cost and competitive quality as a means of driving its stock in the world market. Today, most multinational companies do business in China because it is the only way for them to remain competitive. From services to parts and products, China now has a hand in most economic transactions earning it the distinction of being an economic superpower. And if the trend continues, there is little doubt that China may eventually surpass the US economy.