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China's Economic Miracle
The fact is, the China economy is growing handsomely and at a pace that still serves to impress even in the current depressed global economic environment. During the years of Chairman Mao, many economists considered China's economy to be a wreck. Liberalization and economic rules over the last decade or so, though, has helped to create a dynamic economic engine that is really impressive.
Leaders in China maintain that their economy is continuing to grow at quick rates each and every month. For the most part, there's no evidence to disprove their assertions. In terms of economic leadership, China is poised to overtake Japan as the second-largest economy in the world by the end of 2009.
Chinese GDP or gross domestic product increased by 7. 1% in the first six months of 2009. That's quite a feat, when one considers that most national economies were hit hard by the collapse of the global financial system. The amount of the increase in GDP separates it from the other top national economies (10, overall) in that it was the only one to increase this year.
Many economists and financial experts believe that the strength of the Chinese economy will lead the rest of the world's markets out of the current slump. For China, it's important that this occur, as there are several economies -- especially that of the United States -- that China needs in order to sell its services and manufactured goods.
In order to mutually assist one another, China and the United States are seeking to work in a closer fashion in order to create an environment of economic and strategic cooperation that will lead to a rebound in the US economy. American consumers are the world's single largest group of buyers of Chinese goods, which is a fact that the Chinese government recognizes acutely.
Just about every China watcher these days states that the country is going to a lot of trouble to be a responsible partner in terms of global economic activities. This is quite different from the days when Chairman Mao ran the country with an iron fist. Additionally, the Chinese economic stimulus program ran by the government has proven to be a great success, highlighting how effective a stimulus can be when done properly.
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