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Getting to know China

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  • Tatom, John

Abstract

China, a low income country about the same geographic size as the US and with over four times the population, has had persistent rapid growth that averaged 9.6 percent per year since reform began in 1979. On a per capita basis, real GDP is eight times larger than it was 26 years earlier! China’s population is expected to continue to slow, reaching near zero in 30 years. It has already slowed markedly due to the one-child policy from about 1.5 percent per year in the late 1970s, to about 0.6 percent in recent years. China is likely to become the US’ third largest trading partner, supplying relatively cheap and high quality machinery, apparel and other goods, and a large market where US producers can produce and/or sell their products. At the same time, private Chinese investment is likely to become an important source of saving and financing for US economic activity. Doing business with China has always been a two-way street and that street is beginning to widen to include significant flows of entrepreneurial and financial resources in both directions.

Suggested Citation

  • Tatom, John, 2007. "Getting to know China," MPRA Paper 4265, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:4265
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    Cited by:

    1. Tatom, John, 2007. "When Will China’s Prosperity Catch up with the US?," MPRA Paper 17779, University Library of Munich, Germany.
    2. Neslihan Turguttopbas, 2013. "Export Credit Agency Activities in Developing Countries," The International Trade Journal, Taylor & Francis Journals, vol. 27(3), pages 281-319, August.

    More about this item

    Keywords

    China; growth; financial regulation; demographics;
    All these keywords.

    JEL classification:

    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

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