China and International Trade

Final research paper

JiaBiao Zhang

MBA 551

Dr.Jordan

December 11, 2011

Final research paper

Introduction

China has become one of world's most promising economic power. Since 1979 Chinese market has a great and quickly growth. Enter the twenty-first century, the Chinese economy has maintained steady growth. Although less than expected, but China's GDP growth still reached 9.1% in Q3 2011. "China's gross domestic product expanded at the slowest pace in nearly two years in the third quarter. GDP growth moderated to 9.1 percent in the third quarter from 9.5 percent in the second quarter. On a seasonally adjusted quarter-on-quarter basis, GDP rose 2.3 percent following a revised 2.4 percent gain the second quarter". (www.TradingEconomics.com) This situation shows China's economic growth is still high. Why China has this success, because China has many advantages. For example, low cost labor and a huge mark.

China's economic advantages

China's main advantage is the production capacity and low cost labor. The main reason is China's huge population, and the rich natural resources. Today China has become the famous factory of the world. China's cheap labor and huge market has attracted a lot of foreign investment. These investments have brought to China a lot of money, but also provides science and technology and management experience.

First, Chinese low cost labor. This is China's primary advantages, most Chinese factories are located in the eastern region, mainly due to convenient transportation and a good industrial base. In China, many poor people are come eastern areas looking for opportunities, this has resulted in a lot of labor resources. Because these workers come from poor areas, so they only require very low wages, the wages of the Chinese people are often lower than the United States a quarter or more.

"Banister concluded China has about 38 million city manufacturing workers. The 30 million on whom she found data earn an average $1.06 an hour....