The growth of china in international trade

The actual per income GDP in China was only 140% of the United States level and 10% of the Brazilian capability (World Bank, 2014). Later, China's actual per income was equivalent to the United States one-fifth exceeding an average of 8 per cent per year. This rapid improvement of the nation’s economy changed the standard of living with several hundred millions of its citizens rising from poverty. Consequently, GDP growth has risen to 10% annually. This paper presents a quantifiable discussion briefly on the growth of Chinese economy from 1980 to 2010 through international trade, products and the countries partnership with their allies through international relations and the implication of the international trade strategy towards rising to the most powerful nation in terms of economy. Several countries, region and private investment joined China to develop.

Through this, China learned better agreements on product development policies as well as technology accompanied by opportunities of selling their products and removing them from seasonal demand and supply fluctuations of their production. The high competition resulted in viable prices in both local and international market increasing consumer demand for Chinese products. Quality products and reducing the level of unemployment as well as poverty are the benefits China strategize on her focus on international trade. China’s Gross Domestic Product rose quickly after joining the international trade block. China has been in the full cycle of foreign trade with both capitalists and communist nations during its rise to a leading trading economy. Chinese exports shoot higher than expected overtaking countries that are more economically stable and powerful.

Chinese majors on machinery and electronics as her key products of exportation which encompasses semiconductors, telecommunication, and office machines, computers, and ICT services. The international markets of these products were majorly the United Kingdom, the United States, Asian Countries and parts of Africa (Gilboy & Heginbotham, 2014). The level of exportation has significantly changed as countries rebound Chinese products. Consequently, some trading partners still acknowledge Chinese products as perfect. They purchase them to improve the economic stability of their countries depending on the type of investment needed for the products. For instance, developing nations import Chinese products for purposes of agriculture and services of road construction, and IT services that see China exporting their products and building economic ties for long time agreement.

Selling to foreign consumers increases more productivity within China due to product purchase of Chinese products in bulk. The selling creates a regulatory environment whereby the Chinese government enacts rules and policies. However, China wages have risen suddenly with globalization; average real wages increased more than three times from 1997 to 2005 (Naughton, 2006). Rising wages would erode Chinese global labor advantage. These aspects have captured the attention of most policymakers and economic strategists. The rising labor cost has spread to the international recommendation and business groups. The rise of wages scares away investors of foreign companies due to high wages. The labor force earns a high profit making the nation to become countries with a very rapid rise in savings. Taiwan, Asia, and South Korea are similar in terms of import liberalization (Garnaut, Fang, & Song, 2014).