What Sustains China’s Growth?
The Chinese regulatory environment is also notoriously lax; the economy has grown too rapidly for regulatory bodies to keep up. Though the resulting worker and consumer safety issues have sometimes been severe, profit margins have remained high. As a result, cheap Chinese exports dominate global markets, and China continues as the world’s largest exporter.
China’s Future Development Plans
The Belt and Road Project has buttressed a recent turn towards China among many developing economies, including some as far afield as South America. Though President Trump has recently engaged China in a trade war, renewed isolationism by the United States may help push some wavering nations into China’s arms. President Trump’s decision to pull out of the Trans-Pacific Partnership similarly American alliances is Asia, where China’s rivals had hoped to counter its rising influence.
Upside and the Downside
Some substantial problems remain: China’s limited spending on social welfare problems has forced its citizens to save en masse for retirement, creating a strangling force on economic growth. Inflation and public debt have also represented serious dampers on China’s economic engine. However, as China increasingly rivals the United States in global investment and influence, its impact on the global economy and world politics is only likely to increase.