Impact of China's Economic Growth on Global Economy Business (Essay Sample)

Impact of China’s Economic Growth on Global Economy
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The rapid growth and development of the Chinese economy within the last five decades have raised the country's stake as a major global economic powerhouse. Currently, it is impossible to analyze the status of the world economy without assessing the condition of the Chinese economy. China's status as a global manufacturing powerhouse and a market for raw materials makes it a vital driver of the global economy (Christiansen & Maher, 2017). The cooling down of the Chinese economic growth and trade imbalance, which started in 2010, raises critical questions on the future growth of the global economy. Though the Chinese economy is not fully coupled to the global economy, the trajectory of its economic growth has a significant impact on the growth of the latter.
China's economic marvel is being energized by the interplay between the strong factor accumulation and productivity gains. The economic model adopted by the country throughout the years has been crucial in guaranteeing high returns from low capital endowments in the manufacturing industry (Christiansen & Maher, 2017). The availability of cheap labor, quality work ethics among the Chinese people, and economic reforms make China a conducive market. The incentives provided by the Chinese market continue to attract multinational organizations which effectively make the country the nerve center of the global value chain.