Currently, china has a GDP of 21.14 trillion dollars which has increased from 19.

82 trillion dollars in
2015 at a growth rate of 6.7 %. While the growth rate of GDP has slowed down from 7.3 to 6.7 over
the past three years. The country has a very high gross national savings to GDP ratio at 46%. China is
the World leader in gross value of agricultural output and has increased its industrial production by
6% maintaining itself as the world leader.

In the middle to late twentieth century, China was a widely-closed economy and would fend against
prospects of international trade due to the disparity between its mainland region and the port
regions. However, that has changed drastically as we now see China as the worlds largest hub of
production with its economy extremely interwoven with that of countries around the world. With
the rise of globalisation, we have witnessed china being able to capture a very large portion of the
labour-intensive production of the global pie. Large organisations that sell their products on a
premium including Apple, Samsung outsource the manufacturing to China. One of the reasons that
China has been an attractive country to outsource production is their low currency value. While
critics and other countries around the world protest Chinas artificially low currency value, it has
helped China get a lot of export orders as its cheaper to produce things in China than anywhere else
in the world. This effect so further magnified by economies of scale that the country has achieved
due to mass production and openness to adopting new technology.

Despite the currency being maintained at an artificial low, China has seen slowdown in growth in the
past half-decade. A lot of factors are sighted for this slowdown including the low consumption and
high saving rate in China. The country also has high corporate debt whose servicing takes up a lot of
money and slows down growth. While China could boom due to its low labour cost and rates, it is
not sustainable to keep its people poor. The country is hence focusing on finding ways in which it
can raise the income of its aspiring middle class while maintaining competitivity with international
production. To combat all these problems, china is actively looking for ways to better allocate capital
to maximise profits.

Its important to note here that the urban rural divide in the country has grown steadily as the urban
population living in coastal areas has seen a much faster rate of growth and development that the
rural mainland. This has led to a very high rate of migration from rural to urban areas to find better
work and a higher quality of life. The one child policy china had enforced on its people was relaxed in
2016 as the country was rapidly becoming the fastest aging country in the world which seems very
dire for the future.

China is also facing problems from the environmental degradation taking place. We see that the
arable land in the country is consistently diminishing as urbanisation takes up increasing land. The
country is still dependant on coal and oil for power generation but with increasing emphasis on
green technology and reducing carbon footprint, its facing pressure from its trade partners. Because
of this we see China working to become more carbon efficient and green, as it expressed in the Paris
Agreement this year.