Over the last several years, China has been growing exponentially in almost every aspect of their economy. China is currently one of the top countries in the world with the largest economy, if not the largest! China’s success in their economy comes in various forms and has been in development for decades now to be able to get them to where they are today. In 2017, China’s economic growth was $23.12 trillion which was the largest in the world. In this article we will explore some metrics about China’s fast-growing technology sector and how it is different than countries around the world.
Government Spending
China has spent massive amounts of money on it’s economy and has controlled three major companies that have helped pushed innovation along. With China’s diverse take on government, the country can allocate its resources in certain ways that puts research and development at the forefront of its economy. The three energy companies that the chinese government oversees are PetroChina, CNOOC, Sinopec. The government also controls The People’s Bank of China which is responsible for setting the yuan to dollar ratio. This kind of control over the banking system and major energy companies causes some advantages and disadvantages for the chinese people.
Downside
Now with China being one of the worlds largest economic leaders, there are some problems that need to be addressed and resolved in their economy. The chinese people themselves do not spend much money because of the lack of social services that the government provides. China is focused on exports and imports that many social services are not in place, therefore many chinese people save their money more often. Food, safety, pollution, and inflation are all problems that have been growing with China’s exceptional growth over the years.
Whats Next
The government is now trying to rely more on privately owned companies instead of controlled companies for innovation and more domestic spending. Increasing social services, having incentives for people to live in urban areas are all ways China can help boost their economy even further and solve domestic disputes. Many of the technological advancements in drones, self-driving cars, and solar energy have been produced by innovators from private companies. In the coming years, there is sure to be more innovation in all of these fields and more.