CHINA ECONOMY
In the 1970s, China had started moving to a market-oriented one, thus they played a huge role in the global market. By the year 2010, China had become the largest exporter in the world. Then came liberalization of prices, improvement in agriculture, fiscal decentralization, the banking system got diversified, and the stock markets started to grow rapidly, which led to the start of foreign trade and investment. In the state-owned enterprise, China renewed it, thus they become faster growth of the economy of China and leads to the level of the global competitor to other countries and won the championship too.
China has linked its currency with the US dollar for a few years. Then later it had started to revalue its currency by 2.1 % against the US dollar. Thus they started to shift to the exchange rate system. This further makes in the development of the currency rate. Then there seems to be an increase in the tenfold level of GDP from 1978 onwards. By the year 2012 China has become the 2nd largest economy in the world. Whereas, the first position goes to the USA. Then China has to face huge economic challenges like lowering the high domestic savings rate, low domestic demands, reduction in corruption, lowering economic crimes, etc. In the coastal regions of China, there seems to be more development in the economy than in the interior areas of China.
China On Energy Production
In the year 2011, approximately 250 million migrant workers have shifted to urban areas in order to find jobs. China then becomes the fastest aging country in the entire world. Then soil pollution, air pollution, and erosion have taken place in China which leads to the loss of arable lands. Now the government of China focuses much on energy production capacity, more energy sources like oil, coal and it starts to concentrate on alternative and nuclear energy development. Then there comes a need to increase domestic consumption so that the economy can be made less dependent on exports.
U.S ECONOMY
Next, come to the USA, it is the world’s largest and has a technologically powerful economy entirely. The per capita GDP is around $49800. The private concerns and business individuals get started to make their own decisions, thus the federal and state government needs goods and services in the marketplace. The American business firms start enjoying more flexibility than Western Europe and Japan. The US also faces lots of barriers in order to come into their rivals. Technological advancement takes place in the US, medical development, aerospace development, in military equipment growth and advantages starts. Two-tier labor markets develop well in America.
By the year 2001-2006 crude oil prices started to double. Gasoline prices have become higher. The oil price has increased to 50 %. In the year in between, 2006-2008 bank foreclosures doubled. The fund amount of $787 was released this helps to recover the economy well. Then a law was signed in order to protect the public from the medical expense and thereby promote stability at the finance level. Thus by doing so, consumers are protected from financial abuses.
The unemployment level starts to come down and incomes or wages get increased to families with lower income. The American GDP in the year 2018 was 2.86; this is greater than in 2017 in 0.64%. Thus the US economy starts growing well.
