Challenges of China's economic development in terms of globalization (ჩინეთის ეკონომიკური განვითარების გამოწვევები გლობალიზაციის პირობებში)

Abstract

The present paper discusses the current issues of China's economic development, China's achievements since the launch of economic reforms, economic growth prospects of the country and its role in terms of economic globalization. China has been one of the outstanding countries in terms of economic growth during the recent decades. China is one of the important centers of the global economy. Its role can be beneficial to the whole world economy and the growth of trade. In recent decades, China has become the main drive to the economic growth globally. China's rapid growth is due to the country's accession to the World Trade Organization, trade liberalization, and the growth of investment in the domestic economy. Currently, China is the world's number one exporting country, the country with the largest foreign exchange reserves; it is the second largest economy and has the highest positive trade balance. Before the launch of economic reforms and significant trade liberalization, the country was less integrated into the global economy. After the country was open for foreign trade and foreign investment and the implementing of economic reforms, China has become one of the fastest growing economies around the world. Economic growth and increased exports made it possible to lift thousands of people out of poverty in the country. Since 1980s, China has experienced high economic growth and its share in global trade has significantly increased. However, China's economic growth has been slowing down recently. The paper provides the overview of the historical aspects of China’s economic development. On the other hand, China's role in the world economy is important and can influence global growth. China's growing global economic influence and successful economic and trade policies have a significant impact on the economies of both developed (US, EU, etc.) and developing countries around the world. In 1979, China's GNP per capita (at current prices) did not exceed $200, and in 2021 it amounted to $12,556. In 2020, the total import and export of goods in China exceeded $4.5 trillion. China is the number one exporter and the second largest importer of goods, accounting for 14.7% of world exports of goods and 11.54% of imports. China has become the world's largest economy (by purchasing power parity). Consequently, China's role in the world economy is growing. Based on the above, China's share in the world economy and trade will increase significantly. China can play an even more important role in global economic growth.