Economic Booms of China and India Essay
Economic Booms of China and India
It has been well known that China and India are having an economic boom whilst the west is in a recession. The question is whether China and India are going to slip into a recession as their rate of growth is thought to be “unhealthy”, this would put the western countries back into recession which is a very worrying prospect for a slowly recovering western world. China’s GDP (growth domestic product) is now over $4,211 billion a growth from $53 billion in 1978. China is between a LEDC and a MEDC and is growing at a extremely fast rate which is thought to be “unhealthy”. China’s main port (which there are 200 of) are growing at a huge rate which cannot be sustainable the Port of Shenzhen is growing at over 25% annually to provide the world which China made products. The port is home to 39 shipping companies who have launched 131 international container routes. There are 560 ships on call at Shenzhen port on a monthly basis and also 21 feeder routes to other ports in the Pearl River Delta region.
China just had a deceleration in growth which worried the whole world. The slowdown can be blamed on a variety of factors. China’s government was aiming for a slight deceleration, as it tried to tame its real estate boom and rapid inflation. While the rate still is allot faster than the growth in the United Kingdom, it marks an uncomfortable soft patch for China. Over the last three decades, the country has barrelled ahead at an average of about 10% a year. This shows that the “unhealthy” growth of China of an average of 10% will eventually slow down and bring the whole world into a very bad recession. The economy of India is the eleventh largest in the world by nominal GDP and the third largest by purchasing power parity (PPP). The country is one of the G-20 major economies and a member of BRICS. On a per capita income basis, India ranked 140th by nominal GDP and 129th by GDP (PPP) in 2011, according to the IMF.
However India’s economic growth is also much higher than it is in the western world but I believe their growth is much healthier than the growth in China. India’s industry only accounts for 28% of its GDP whereas in China that number is much higher. China and India share many similarities as they are both growing at a huge rate but China’s growth is mainly in industry which is much less sustainable. China is also relying on the fact communism remains strong and doesn’t crash because if it does wages will rise and put western countries in recession.
India designs much more unique high quality products which is much more sustainable than China’s large scale low quality batch production which is much less sustainable and that is the reason I believe that China is the biggest threat to the western world. I believe that China is the biggest threat to the western countries and would put the whole world into recession. Therefore I believe the countries should stop relying on China so heavily because China controls the whole world. If China did not believe in something a county did it could stop the exports to that country which would hugely affect that country. Therefore I believe that it is a threat to the west. I do not believe that India is YET such a threat as China but in less than 10 years I belive it may be just as much of a problem as china.
Subject: Cold War,
University/College: University of California
Type of paper: Thesis/Dissertation Chapter
Date: 16 October 2016
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