Discuss the reasons for the emergence of China as a global trading Essay - 1

Discuss the reasons for the emergence of China as a global trading power in the light of international trade theories - Essay Example There are various theories behind the rise of China as one of the strongest economies in the world. This work will look into and discuss the reasons behind the emergence of China as a global trading power in the world in the light of International Trade Theories. China has remained one of the strongest Communist countries in the world and after the fall of USSR, it has emerged as the center of the Political ideology in the world. However the subsequent reforms saw the start of the country’s transition to the market economies. The economic reforms into China started during 1978 and are considered as most successful as compared to the other controlled economies of Eastern Europe. A comparative study of the transition economies would suggest that China has been able to perform better than other transition economies of Eastern Europe mainly because of the rise of private firms into China. The emergence of Private firms into China has been extra-ordinary despite the fact that State has protected the state owned enterprises. The rise of China therefore is also attributed to the unplanned rise of private firms into the country besides the government reforms. From 1978 to 1992, the gross national product in China grew at an average rate of 9% and in 1992 and 1993, growth accelerated to over thirteen percent, giving China the worlds fastest growing economy. In 1994, even with attempts to cool down the economy, growth remained above ten percent.Error: Reference source not found. However it also must be noted that the largely held misconception that the Mao Zedong was behind the economic rise of China is not correct in its true sense as many believed that a great Opportunity to fulfill the Chinese dream remained unfulfilled during his era however the Mao era also saw the changes into health, education and other sectors of the economy however on the whole it remained largely under achieved economy during