Kim, Jongsung

Abstract
Not only has China grown in its economic capacity in terms of GDP and GDP per capita growth rates, it also has grown in terms of its trade volumes. China has maintained remarkable economic growth with an investment and export-driven model. With its rapid economic growth in recent decades, China has made a significant contribution to global economic development. In the past 20 years, “China has added approximately US $2 trillion to world GDP, created 120 million new jobs, and pulled 400 million people out of poverty” (Aziz and Dunaway 2007, 27). Being a powerful export-oriented industrial economy, China has an ability to outcompete almost all of its rivals. However, as the global economy continues to falter, China’s exports are expected to fall in 2009; if this happens China will not be able to sustain its export-driven model to fuel economic growth. China faces perhaps its biggest test since reforms began in 1978, confronted by many internal and external challenges. China’s ability to sustain its current economic growth path depends on how it deals with these challenges. In this paper, I explore various aspects of China’s economic growth and development, and the challenges facing China in order for it to sustain growth into the future.
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