Gross Domestic Product in China

Under complex and tremendously difficult conditions, China is one of the countries that have shown steady and moderately fast economic growth as explored in the speech read by Jiabao (2010). These achievements are as a result of the complete implementation of the stimulus package by the government. Owing to the harsh economic melt down, China’s economy dropped by a significant margin that resulted to suspension of operations in many industries while others had to close down completely sending their workers back home jobless. In 2009, the downward trend of the economy was quickly reversed rising urban employment, increase in people’s income and maintenance of public harmony and stability. The stimulus package most significantly helped secure the drive of economic growth creating employment and welfare of people in a country like China that has a high population.

In dealing with the global financial crisis, China has given major importance to the pattern of economic development and restructuring the economy. In the recent years, a lot of emphasis is vital in the production of quality products and better still the domestic consumption of these products and this has resulted in the tremendous growth of the economy. The improvement of the industrial organization has also been a point of major concern to ensure the production of quality products that can compete in international markets (Jiabao, 2010).

The infrastructure in China has developed and strengthened with an aim of decreasing travel time from one municipality to another. This has made it possible for people to live in one region and seek employment in other regions irrespective of distance. The construction of the top-class high-speed railway in China was a major development that opened up rural areas for development as well as creating employment opportunities for the people of China.

Significant progress has also been made in energy production and conservation, environmental protection and emission reduction. Inefficient production capacities have been eliminated especially those involved in energy production replacing them with efficient ones that contribute to economic development as explore in the speech “Consolidate the Upward Momentum and Promote Sustained Growth”. The improvement of these industries is done regionally to ensure that all areas are equally developed offering employment to all. This will prevent the migration of people from the rural to the urban areas with the intention of searching for employment. This will enhance the growth of the nationwide increasing stability unlike where people have to move to the urban areas forcing them to share limited resources found in that area.

China has successfully implemented positive fiscal policy and a relatively simple monetary policy with an extraordinary intensity while keeping the risks involved under control as discussed in the speech read by Jiabao (2010). The government debt and budget deficit have been kept at a minimum to. In the era of sudden international financial crisis, the fiscal policies adopted have played an important role in the continuous growth of the economy. Nonetheless, challenges and negative impact can not be avoided therefore, it is important to balance the two by promoting the positive effects and working on eliminating the negative ones.

In conclusion, the perspectives in the real economy and in the fiscal and financial field, the stimulus package has provided the country with policies that are fast and timely so as to meet the challenges that come with the international financial crisis. These are the choices made by the industries and the government to encourage the economic growth of China for the benefit the current as well as the future generation. China’s economic growth is impeccable featuring rapid growth, increase in employment, structural improvement and basic price stability (Jiabao, 2010).

References

Jiabao, W. “Consolidate the Upward Momentum and Promote Sustained Growth.” At the World Economic Forum Annual Meeting of the New Champions 2010. 13 September 2010.