Asian University Of Bangladesh

BBA 4161: International Marketing

Research Title: China will lead the world economy of the future
Section: A
Group: 03
Semester: Summer 2022

Student Name Student ID

Siam Ahmed 201820316
Farhana Binte Nadia 201945681
Sharon Islam Rifat 201945688
Abstract
China has been growing at a spectacular rate in recent years, enabling
per capital incomes to almost quadruple in only the last decade and a
half. This paper identifies the sources of economic growth in China from
1978 to 2021. While capital accumulation played an important role in
China's economic growth throughout the period, it is basically the sharp
and sustained increase in total factor productivity that accounts for the
unprecedented economic growth observed during the reform period. The
productivity gains largely reflect market-oriented reforms, especially the
expansion of the nonstate sector, as well as China's "open-door" policy,
which brought about a dramatic expansion in foreign trade and foreign
direct investment. Over the past 40 years of reform and opening up, the
People's Republic of China (PRC)'s economy has achieved rapid growth
that has attracted worldwide attention. The average real GDP growth
rate of 1978 exceeded 9%. Its strong economic growth mainly derived
from the surge of productivity growth as a result of the market-oriented
reform in 1978.The average real GDP growth rate of post-1978
exceeded 9%. Its strong economic growth mainly derived from the surge
of productivity growth as a result of the market-oriented reform in 1978.
The total factor productivity (TFP) growth had an annual rate of 3%
during 1978 to 1998.
Rise of Chines Economy
Today China is one of the top richest economies in the world. China’s
total wealth is 120 trillion US dollars, surpassing that of America. In
addition, China is the second country in the world with a nominal GDP of
14.86 trillion dollar. On the other hand, America is in the first position
with 20 trillion US dollars. However, in terms of purchasing power parity,
China is at the top with 24.16 trillion US dollars. Behind the such
country's economics of vision lies the manufacturing capability. China is
famous as the "factory of the world" they produce one third of the world's
total product. Since 1990 China's global manufacturing output value was
3%. Where China has come 30% of their global manufacturing value in
2021. Moreover, China holds the top position in world exporters with an
export value of 2.6 trillion dollars. How has China changed its economic
situation over a decade?
Since 1978, Deng Xiaoping's leadership and policies have gradually
changed the Chinese economy. He first focused on the development of
agriculture to meet the food needs of the entire population. He then
realized that agricultural production was sufficient and focused on
textiles, small industries and electronics products. Thus, at various times,
China looked to new industries and China began to dominate those
sectors. Today, China is the second largest economy in the world.
Chinese economy growth first because Agriculture, Textile
industry, Small industry and Electronic.

1.Rise of Agriculture
Following the Chinese Communist Party's victory in the Chinese Civil War, control of
the farmlands was taken away from landlords and redistributed to the 300 million
peasant farmers, including purges of landlords during the Land Reform Movement.
In 1952, gradually consolidating its power following the civil war, the government
began organizing the peasants into teams. Three years later, these teams were
combined into producer cooperatives, enacting the socialist goal of collective land
ownership. In the following year, 1956, the government formally took control of the
land, further structuring the farmland into large government-operated collective
farms.
In 1978 Den Xiaoping was the president of China. That time 95% peoples in China
related on agriculture profession. Den Xiaoping was realized that large of population
are not used in heavy industrial sectors. He recruitment maximum number of
peoples in agriculture and included low crops tax. Farmers sell the extra crops in
market and farmers get the inspired increase Production. In 1979 Chinese
government 22% brought with extra price of agriculture products from farmers. In
1985 Chinese 63% peoples add in agriculture sector. Den Xiaoping policy to helped
avoided famine for the China. So China has become food surplus country. Today
Chinses agriculture products market is largely in around the world. Specifically, USA,
Canada, Europe and Middle East countries China dominate in this market.
Since China's accession to the World Trade Organization in 2001, the country's
trade volume in agricultural products has increased tremendously and reached
around 304 billion U.S. dollars in 2021.

2.Rise of Small Industry

When Den Xiaoping see success on agriculture sector. He focused on small industry sectors
example: Furniture’s, Fertilizer, Toys, Farm Land etc. This Sector need to low skill labour.
Since then, is how Chinese small industry is moving forward. This is started to create of
concept Township & Village Enterprise (TVE). In 1990 TVE concept build up to Chinese
economics growth. At a time TVE controlled Chinese government but after the time Chinese
government promoted private and joint partnership system. TVE was 25% of Chinese GDP
in 1996. That time created 100 million employers in China. Moreover, China’s economic
growth in 2023 will be led by several key industries that are forecast to flourish due to the
lifting of COVID restriction, as well as government support and incentives. These include
tourism, new energy vehicles, online shopping, software development and healthcare. From
this it can be growth of China’s economy.

3.Rise of Textile Industry

Long time ago China cultivated in cotton. They are number one world cotton
exporter. In 1978-2000 increased Chinese clothing production average annual
growth rate 14%. During the time Chinese government started open door policy in
China. In 1978-1997 Textile product export 22% increased. That was try to to help
make top exporter country in the world. In 2000 Chinese exporter 20% hold on world
apparel market. This time Chinese government can understand demand of educated
skill labour. So this time Chinese government started nine years compulsory
vocational education system. China’s exports of textiles, apparel and clothing
accessories increased to $273.246 billion in the first ten months of the current year,
registering a growth of 6.64 per cent year-on-year. The latest monthly data released
by the General Administration of Customs of China shows that the country’s garment
exports grew by 6.4 per cent in the same period.
Garments and clothing accessories exports reached $147.586 billion in the first ten
months, which was 6.4 per cent higher than the same period of last year. China’s
textile exports, including yarn, fabrics, and others, registered a growth of 6.9 per cent
year-on-year and the shipment reached $125.660 billion in January-October 2022.
Textile and apparel exports during October 2022 amounted to $25.022 billion. Out of
this, textile, yarn, and articles exports earned $11.368 billion, while garments and
clothing accessories fetched $13.65 billion in October this year. RMG and Textile
sector in South Asian countries like Bangladesh, India, Pakistan extremely depend
on China.
4.Rise of Electronic Industry
In 1990 Japanese and Korean home appliance demand are increased. They have not
enough land and work force. In 1990 China have enough free land and skill labour. Korean
and Japanese company stabilised their company in China. China make plant by used
Korean and Japanese technology. This time China started production VCR, Radio. Chinese
government can understand he had a need to new industrial area. They first stabilised new
technology zone in Zhongguancun.
Since then, China developed their supply and chain management. Not only that,build up low
tax for foreign investment. Big companies they are stated build up their plants example:
FOXCONN, SUMSUNG, PANASONIC, LG. In USA computer and tech product developed
day by day. China can understand Tech products future value. USA companies Dell, HP,
Appel needed cheap work force. This time China get chance and offered investment in
China. Chinese labour get chance worked in plant’s. China started their copy cut culture.
After day by day China expand their business around the world and their Economy growth
first.
Chinese electronic market expands all around the world. Because China can easily enter the
international market. China give to products at a lower rate than the product of USA, Taiwan,
Japan, Korea. Now days Chinese electronics product dominate with big giant company in
the world. Now days, China build up Robotics Al Technology. They made robotics machinery
system, this robotic machine use in heavy industrial sector. China getting largely production
output in the short time. As a result, reducing production cost and they selling product low
price in international market. So China can to easy capture international buyer. We consider
that in 2030, China will have the largest electronic market in the world.
Design And Product Development
From the beginning, the products of developed countries were copied in China. In
this way they sold the product all over the chinses market. China started exporting to
the world using this copy cut culture. Around 2010, Chinese manufacturing
companies focused on developed their design and product quality. All sectors come
with product and design changes. This has increased the acceptance of Chinese
products all over the world. China continues to expand the scope of its global market
operations through the dumping method. As a result, The demand for Chinese
products in the global market is dramatically increased.
A large amount, of foreign investors invested in China from 2010 to 2020. Especially,
Chinese machinery, electronics, tech and textile products increased foreign
investment. Take giant companies from all over the world are paying attention to
China. As well as apparel take giant companies are also increasing their product
order. Today, many small and large companies have been established in China and
their product export increasing day by day. Now through the new strategy China has
used to capture the world market in the future. Not all developed countries have
long-term plans but China, which leads the global market, has long-term plans. The
world's wholesale and retail traders are dependent on and China.
DEBT Trap Diplomacy
The experience of being in debt can be stressful and challenging and, if
managed in a disciplined way, can help you achieve financial goals and satisfy
all your needs. However, mismanaged debt will not only impact your financial
well-being but will also affect your mental health. While small loans can be
managed easily, large, expensive loans like home loans are more daunting.
Yet, several people have managed to solve the process of clearing debts, and
even you can solve it easily. All it takes is a proper financial plan and
discipline to get started.

What Is Meant By A Debt Trap?

A Debt trap is a situation where you’re forced to take new loans in order
to repay your existing debt obligations.
How can you restructure and consolidate all debts?
If you have multiple loans with different tenure, you must talk to your
bank to consolidate these loans into one and restructure the interest and
tenure accordingly.
Doing this will help you lower the interest rate. You may also negotiate
with the bank to increase the tenure in order to reduce the magnitude of
the EMI.

What is the best way to get out of the debt trap?

One of the best ways to get out of the debt trap is by seeking
professional help or advice from the professional. You can opt for several
professional debt counseling agencies that provide advisory services.
 Counseling agencies can help you create a budget and set expenditure
limits.

Chinses DEBT Trap Diplomacy

International Relations, one of the most crucial aspects of a nation-state
is to fulfil its national interests. These interests may vary from state to
state, but fundamentally all states focus on enhancing their power and
position in the global arena. Foreign policies are often in tune with the
country’s interests, and one such example is Belt and Road Initiative
(BRI), through which China is strengthening its leverage in Asia and
Africa. Subsequently, a new concept emerged when Brahma
Chellaney, an Indian Academic, came up with the term Debt-Trap
Diplomacy in 2017.

Debt-trap diplomacy is a term used to define a creditor nation or

establishment extending loans to a borrowing nation in order to expand
the lender’s political leverage. This form of diplomacy entails providing
projects/loans with too challenging terms for borrowing states to pay
back, ultimately forcing them to accept economic or political
concessions. Simply put, the debt trap is a position in which someone is
forced to overspend on loans in order to pay back their existing debts.
Recently, one faction has blamed China for using this strategy to
promote its geopolitical interests in Asia and Africa by giving them huge
loans and acquiring the assets of the borrowing nations when they fail to
repay. The other, however, has portrayed China as an excellent
entrepreneur who saw economic opportunity in providing loans to failing
countries, generating enormous profits from it — both in terms of money
and resources.

The central aim of this article is to examine which side upholds the
argument closest to reality. Did China begin its multi-billion Belt and
Road Initiative as a master plan to trap poor and needy nations and rip
them off their assets and resources? Or is this concept of debt trap just a
coincidence that overlapped with China’s efforts to provide financial aid
and assistance to developing countries?

China’s Belt and Road Initiative

China’s Belt and Road Initiative (BRI), sometimes referred to as the New
Silk Road, is one of the most ambitious infrastructure projects ever
conceived. Launched in 2013 by President Xi Jinping, the vast collection
of development and investment initiatives was originally devised to link
East Asia and Europe through physical infrastructure. In the decade
since, the project has expanded to Africa, Oceania, and Latin America,
significantly broadening China’s economic and political influence.
Some analysts see the project as an unsettling extension of China’s
rising power, and as the costs of many of the projects have skyrocketed,
opposition has grown in some countries. Meanwhile, the United States
shares the concern of some in Asia that the BRI could be a Trojan horse
for China-led regional development and military expansion. President
Joe Biden has maintained his predecessors’ skeptical stance towards
Beijing’s actions, but Washington has struggled to offer participating
governments a more appealing economic vision.

What was the original Silk Road?

The original Silk Road arose during the westward expansion of China’s
Han Dynasty, which forged trade networks throughout what are today
the Central Asian countries of Afghanistan, Kazakhstan, Kyrgyzstan,
Tajikistan, Turkmenistan, and Uzbekistan, as well as modern-day India
and Pakistan to the south. Those routes extended more than four
thousand miles to Europe.
Central Asia was thus the epicenter of one of the first waves of
globalization, connecting eastern and western markets, spurring
immense wealth, and intermixing cultural and religious traditions.
Valuable Chinese silk, spices, jade, and other goods moved west while
China received gold and other precious metals, ivory, and glass
products. Use of the route peaked during the first millennium, under the
leadership of first the Roman and then Byzantine Empires, and the Tang
Dynasty (618–907 CE) in China.
But the Crusades, as well as advances by the Mongols in Central Asia,
dampened trade, and today Central Asian countries are economically
isolated from each other, with intra-regional trade making up a small
percentage of all cross-border commerce. They are also heavily
dependent on Russia, particularly for remittances, which made up nearly
one-third of the gross domestic product (GDP) of Kyrgyzstan and
Tajikistan before the Russian war in Ukraine scattered remittance-
sending migrant laborers.

What are China’s plans for its New Silk Road?

President Xi announced the initiative during official visits to Kazakhstan
and Indonesia in 2013. The plan was two-pronged: the overland Silk
Road Economic Belt and the Maritime Silk Road. The two were
collectively referred to first as the One Belt, One Road initiative but
eventually became the Belt and Road Initiative.
How The United States Should Respond To The BRI
Xi’s vision included creating a vast network of railways, energy pipelines,
highways, and streamlined border crossings, both westward—through
the mountainous former Soviet republics—and southward, to Pakistan,
India, and the rest of Southeast Asia. Such a network would expand the
the international use of Chinese currency, the renminbi, and “break the
bottleneck in Asian connectivity” according to Xi. (In 2018, the Asian
Development Bank estimated that the continent faces a yearly
infrastructure financing shortfall of over $900 billion.) In addition to
physical infrastructure, China has funded hundreds of special economic
zones or industrial areas designed to create jobs, and encouraged
countries to embrace its tech offerings, such as the 5G network power
by telecommunication giant Huawei. Xi subsequently announced plans
for the 21st Century Maritime Silk Road at the 2013 summit of the
Association of Southeast Asian Nation (ASEAN) in Indonesia. To
accommodate expanding maritime trade traffic, China would invest in
port development along the Indian Ocean, from Southeast Asia all the
way to East Africa and parts of Europe.
China’s overall ambition for the BRI is staggering. To date, 147 countries
accounting for two-thirds of the world’s population and 40 percent of
global GDP—have signed on to projects or indicated an interest in doing
so