China's Economy -Ya Wen

In the previous CID lesson, we learnt about the main factors of China's economic growth. China's socialist market economy is the world's second largest economy by nominal GDP (Gross Domestic Product). It is the world's fastest growing major economy, with growth rates averaging 10% over the past 30 years. However, it is also ranked 4th in the world in terms of GDP per capita. This means that the income gap between the rich and the poor is widening. China has one of the lowest corporate tax rate in the world but this attracts foreign investors to do business in it. This has also been of paramount importance to China to accumulate huge levels of growth in its economy. 

China is now at the centre of the region’s growth story. Looking around us, many of the objects we see now are exported from China, and this shows how important China is to us as a trading partner. In other words, this means that Singapore’s overall economy could also suffer if China’s moderating economic growth results slowdowns. It would be prudent to keep an eye on events in China as Singapore's prosperity would most probably be affected, more or less, if there is sluggish growth in China's economy.