China as an economic power in the world Research Paper

China as an economic power in the world - Research Paper Example For this to happen, the Chinese government needs to implement policies that fasten China’s transition to an economy that is a free market. In addition, it should address issues to do with growing income disparities, enhance innovation and production, as well as boost the protection of the environment. The country’s gross domestic product has grown at an annual rate of about 10%. China has risen rapidly as a major economic power within a span of about three decades. The rapid economic growth has led to an increase in commercial ties with the United States. As compared to the U.S, China is less developed but analysts predict that China will become the largest in the next five years. Many U.S companies have operations in China and the main reason is to have the ability to sell their products in the flourishing Chinese market and to take advantage of cheap labor for the exporting goods. These operations have made some U.S firms more competitive internationally and have managed to supply the U.S consumers with a range of goods at a low cost. However, the rise of China as a major economic power has brought challenges among the U.S policy makers. There have been claims that China uses practices that amount to unfair trade to flood the U.S market with goods that are of low cost. In addition, the growing use of industrial policies to protect the indigenous Chinese industries and the widespread failure to take action against the infringement of the U.S intellectual property rights pose as a threat to the U.S intensive industries (Jacques, 2009). Others contend that the country has a growing demand for energy and raw materials and its surfacing to be the country that emits the most greenhouse gases. China faces a number of challenges as much as the Chinese government supports the maintenance of social stability as one of the ways of growing the economy. The challenges may dampen the growth of the county’s future by distorting economic