Over the past two decades, China has experienced unprecedented economic growth. This growth has unjustifiably earned China in the position of a major economic power in Asia. China is slowly lagging behind Japan in economic power and a little behind the United States in purchasing power. In the world rankings, China is the sixth largest merchandising country in the world, the twelfth largest exporter of commercial services and the largest beneficiary of foreign direct investment. The advantage of China contributed to its entry into the World Trade Organization at the end of 2001. Although there are some arguments in favor of the fact that the actual growth of China’s economic status is not as high as the Chinese government represents, there is little doubt that China officially emerged on the world stage as a major economic player.
Many experts are so impressed with the exponential growth of China’s economy in recent years that they have called the nation a “global manufacturing center.” Of course, since China has become a major exporter of world goods, this description, although exaggerated, is a great description of the Chinese position in the world economy. However, this growth has been questioned by some experts and is concerned about other Asian countries. China's growth in the Asian market has steadily increased over the past two decades; a phenomenon largely unrelated to any other nation in the world.
With other countries in Asia, as well as with countries outside the geographic region, China’s exports have significantly exceeded their imports. This growth agitated the investment sector and allowed for the inflow of global capital into the country's economy. Although China’s exports remain still a small part of the results of Southeast Asia, most experts claim that China will become the largest exporter of goods within a decade. Experts also noted a steady trade surplus with Western countries such as the United States and the European Union, which are likely to support and stimulate economic growth in China.
Part of this economic growth is fueled by the attraction of China as a tourist destination. Over the past two decades there has been an increase in the influx of tourists, as well as an increase in both business and business travel. As well as the growth of economic growth in China, its tourism market has also increased significantly. At present, China has the fastest growing tourism market in the world, with more than two million visitors a year in recent years. And as the nation continues to grow in a business sense, more and more people will travel and leave the country. Some concern was expressed that the growth of China as an exporter of consumer goods may lead other exporters to be somewhat powerless in the global consumer goods market.
However, some experts argue that this will not happen because the growing globalization of the global consumer goods market is likely to make other countries equally competitive in the production and export of such goods as communication technologies and electronics, and that the production chain that exists through countries, especially the case of Southeast Asia will only increase with the growth of countries such as China and their dominance as a global economic player. However, experts also predict that, especially in the field of clothing and textiles, China’s growth may lead to increased competition in the Southeast Asian market, which may lead to competitive markets failing to keep pace with the times. While this will certainly keep market prices low, it will also give China a great advantage over its neighbors in Southeast Asia and will have an undesirable effect on wages and profitability of industries in other countries.
There is also some concern about the amount of funds flowing into China, and not about investments that are in other countries of Southeast Asia. China has a much larger share of foreign investment funds than its neighbors. Especially in Southeast Asia, competition for foreign investors is intense, with almost half of these funds now going to China, and the rest of the countries in the region are making almost 50% reduction in foreign investment funds. Many experts point out that most of the growth in China was due to the opening of China’s markets to foreign investors. Although doing business in China remains in some ways difficult, opening up the economy was a blessing not only for investors, but obviously for China. Before China’s boom, Japan was the only country in Southeast Asia that was recognized as a major player in the global economy, and they were also recipients of most foreign investment funds.
However, as can be imagined, Japan suffered financially as a result of China’s growth, since foreign investors recognize China’s economic potential, the bulk of foreign investment funds have moved from Japan to China. In addition, Japan had to decide whether to invest part of its own funds in China’s economic market and economic growth. Despite the fact that they were associated with investing in the growth of China in the past, now there may be a growing trend towards Japanese investment in China with the planned relocation of several Japanese enterprises. Some experts predict that China’s growth will benefit its neighbors, as China will begin to invest in other countries in Southeast Asia. In fact, China itself argued that its economic growth should not disturb the surrounding countries, but should be a welcome part of the whole growth area, as China promises to share wealth.
While some people see China’s rapid growth as a recent event, in fact it’s already long overdue. Since China opened its economic and physical borders to investors in the early 1990s, the nation was the beneficiary of many global investors who were looking for new markets for investment. However, some experts predict that the region’s overall political instability could well be a fall in China’s economic growth, since these experts are wondering how long growth can be maintained, especially to the detriment of the rest of the region. The same experts predict that the only way for other countries of Southeast Asia to compete will be to develop the same effective trade policy as China. However, these peoples, stuck as a result of internal political problems and weak leadership, can not cope. The growth of China in recent decades from a poor country with a stagnant economy has been noted as a huge success.
China was one of the few countries that achieved sustained economic growth even during periods of economic depression. Some analysts insist that this growth has put China only in the United States as a full world power, and some even argue that in the next few years, China can indeed overtake the United States as the main world power in all respects, and not only economically. Of course, the growth of China as a global player in the economy and in politics opened up links between China and the United States, as well as with the rest of the world. Currently, China is the United States. the second largest source of trade, and many US investors flew out of China with US investment funds. However, according to some analysts, China will overtake the United States as the world's largest economy over the next decade, other analysts argue that even if China continues to pursue steady economic growth, it does not have the political structure to overtake the US as a world superpower.
