China's Export

China’s Exports

[Student’s Name]

[Instructor’s Name]

[Date]

China is disappointed in a 7.4% growth rate because most of the headlines noticed the target for GDP as “7.5%” is mentioned by the government. However, in reality, the target set by government was “about 7.5%” which shows that it was just a range and the government was expecting something around 7.5%, either increased or decreased (Kazer, 2015). Moreover, china was disappointed with such slow growth rate due to export weaknesses and poor domestic picture. 7.4% was considered as the slowest and worst economic growth of china due to which it received much criticism. On the other hand, sharp decline of imports due to low demand from local market also contributed to the scenario (Kazer, 2015).

Due to the last economic crisis of 2008, China suffered a lot due to decline in imports, exports, inflow of FDI, growth of GDP, and also with respect to employment opportunities for Chinese workers. However, due to encouragement from the government for enhancing consumption, trade surplus would eventually increase as exports and imports will be balanced. Moreover, with respect to china’s economy, if consumption is encouraged as well as it is achieved successfully, there will be many job opportunities for Chinese workers which would eventually enhance the economic condition of china (Morrison, 2014). Plus, domestic consumption will be enhanced and this may also lead to a decline in inflation as well (Pettis, 2014). Also, with the enhancement in domestic consumption, china will be able to boost up the trade surpluses.

Similarly, in light of the economics principles, as stated by Gregory Mankiw, with the help of trade everyone could become better. Likewise, if the changes are successfully achieved in China, the economy would be made better with the help of employment opportunities. Moreover, the economics principle states, goods and services are produced by that country whose living standard is dependent on...