Whether you’re holding a spatula or a kid’s toy, you will see a familiar label on both of them, “Made in China.” You would rarely find anything that doesn’t have a “Made in China” label. Many counterfeit items, like a cheap Louis Vuitton bag or a Calvin Klein perfume, might find the same label. But due to the exceptional quality and features close to the original one, people tend to buy them, especially those who cannot afford them but still want the fancy stuff.

 

China accounts for the largest GDP of the world, ending 2021 with $17.7 trillion, right behind the USA, which has a GDP of $22.9 trillion. So, how did China recover its economy after World War II and the sufferings from its civil war in the mid-20th century?

Trading methods

 

China’s trade with developing countries has been in finance, aid, and grants. It all started in 1953 when China’s aid went to North Korea and North Vietnam. After finding its strength, China started giving interest-free loans to Srilanka, Myanmar, Pakistan, and Burma. Hefty loans were also given to Ghana, Tanzania, Algeria, and some parts of the middle east.

 

People in China were very enthusiastic about trade. Who doesn’t want to become a bitcoin bank breaker and spend less money to get more? The Chinese government also had reserves of funds when the global recession hit developing countries in 2008, facilitating the people of China to continue their trade.

 

Industrial Manufacturing & Growth

China’s first step towards industrial growth was building its heavy machinery industry. China is now the biggest steel manufacturer and produces half of the world’s steel.

 

Other than that, China’s exports include toys, electronic and electrical machinery, textile, footwear and clothing. Its main export destinations are the USA, South Korea, Hong Kong, Japan, and European countries.

 

China has many firms that create their hardware and software. Famous companies like OnePlus, Xiaomi, and Huawei originated in China and have a very good reputation in the rest of the world due to their longevity and unique qualities. China also assembles hardware for well-renowned companies like Apple.

 

Economic concerns

China often comes under the radar for its non-renewable energy resources. It makes it close to becoming the world’s largest polluter and emitter of greenhouse gases. Due to its heavy industries, China ruthlessly burns huge amounts of coal, becoming troublesome to many.

 

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Being a rapidly developing country, corruption doesn’t die down in China. Its rules and regulations have caused many death cases, which failed to get exposed to social media and news. The government sets up unnerving restrictions prohibiting other countries from working with China.

 

Will China surpass the USA’s GDP?

By 2030, it is estimated that China might surpass the USA’s gross domestic product. By 2025, China’s GDP will see a 5.7% per annum growth and an increment of 4.7% until 2023.

 

Having the title of the world’s greatest economy won’t give a good preference over others, but countries that depend on the Chinese economy would be influenced by it.

 

The 9-year-old Belt and Road initiative aims to build land and sea trade pathways through infrastructure projects in Asia, Europe and Africa. Investments will get upgrades and advancements due to the constant flow of money.

 

Ending note

China faces a lot of backlash for making low-quality and counterfeit products, but it is the biggest source of income for it. China gradually improved its quality and sold stuff at minimum prices, which compelled people to buy more. If this continues at a steady rate, China will surpass the USA’s economy by 2030.