China, an Engine of Growth, Faces a Global Slump Essay

Yardley, J. , & Bradsher, K. (2008). mainland China, an Engine of Growth, Faces a Global Slump. tender York Times, October 23, p. A6. In the article Yardley and Bradsher discuss Chinas economic and financial slump caused by the world-wide financial crisis. For three decades China has been one of the most powerful and promising countries in the world. The country has managed to assistant its economic development due to flood of low-priced exports. However, global crisis negatively affects the country that faces the possibility of global recession.The question is whether the ruling Communist Party is able to prevent global financial crisis and to support Chinas economic miracle. Economists and analysts say that Chinas economic development plays crucial role for economies of the coupled States and European countries as they face serious downturns. Nonetheless, Chinese economic model is to be recalibrated, domestic investments ar be stricken with government spending, and policies a imed at increasing consumer demand are to be promoted.China is in need of better health care network, improvements in social safety network, and lower fees for education establishments. Chinese government claims that global crisis insulates countrys financial system and, thus, leaders argue countrys banks would remain domestically concentrated. The overall economic growth has decreased, unemployment rates confuse increased and many factories have closed export region.China is recommended to use its unusual reserves for purchasing stocks in European as it gives China an excellent opportunity to gain more experience in global business. Some research worker say that Americas decline is inevitable and if China is prepared to manage it, it will be ready to stand as a superpower. In its turns, China isnt willing to be considered as a replacement of the USA as it is still a developing country with more foreign reserves and more problems than other countries.