China's Economy- Emma

China's economy growth and implications on Singapore

In our previous CID lesson we looked into China's rapid increasing growth of economy and also the many reasons for its success. There are mainly three reasons for the rapid growth of China's economy. Firstly, China has one of the lowest corporate tax rate of 25% as compared to many other developing and trading countries. With this low tax rate, it attracts many foreign investors to conduct business with China as they can save a huge sum of money from the tax and can use the money saved for other purchases. Secondly, China has many massive lands available, thus they can build more factories to produce more goods. Adding on to that, the third reason is that China has a huge population of 1.4 billion. There will be no lack of manpower and cheap labour will attract foreign businessman. Thus they have more manpower to work in factories and produce more goods more efficiently and faster. With this mass production, it saves time and effort thus allowing businessman to profit more. 

I find that China's economic growth will continue to develop further and increase more rapidly in the future. Thus I find that Singapore should start trading more with them for imported goods. I find that we should also maintain a good and friendly relationship with China as we continue to work and trade with them. As China develops even more, many goods are made or produced there, in order for the goods to be obtained, it needs to be imported and we will be able to use it. If we do not maintain a good relationship or partnership with them, our variety of goods will be hard to get in the future. I hope that we can also learn from China to become a better nation at trade so as to attract foreign businessmen to trade with us too. We should also collaborate more with China in order to keep up with the developing changes around the world.