China's Economy-Josiah

China's economic growth

By opening up their country,China would be more prosperous as more countries will have business ties with her. Due to China's population,cheap labour which makes mass production possible, China can afford to have cheaper products and more countries will trade with China as the prices are lower thus China will be more prosperous with increase trade. The tax rates in China is also relatively lower,this attracts foreign investors to China setting up their business in China which indirectly benefits the country as China would be more developed. Their exchange rates also makes trading with China more worthwhile as traders can buy goods at a lower price before selling it at their own currency thus lowering the capital cost. In China itself,because of this growth more people will have jobs due to more foreign traders setting up factories,standard of living also increases as people are more well off. This growth also leads to negative impacts, more factories will result in pollution of air water and even the noise. There will also be increase in income inequality as income gap between cheap labourers and wealthy businessmen would be greater as not everyone has an equal opportunity in this growth. China's economical growth would also attract Singapore as the goods are also cheap,due to the income inequality more people might also migrate to singapore to look for better opportunities.