In an article for the FT, I argued that China’s economy is in a “defining moment” in which to embrace the liberalisation of the Chinese market economy.
China has the potential to become the most dynamic market economy of the 21st century, and the FT argued that the country could become the biggest exporter of goods, with a market value that could be more than $1 trillion a year.
That’s a significant jump from its current $4 trillion in annual sales, but it still leaves it behind the likes of Japan and the US.
“The most obvious question is: why do they want to do it?
The obvious answer is they want a better quality of life,” wrote Jonathan Beale, the FT’s China economist.
“That’s the obvious answer, but they don’t have it yet.
They’re not going to do that by the end of the year.”
But the FT argues that this is a mistake.
China could become a more productive economy in five years, it says.
That would give it the potential for a 20 per cent boost in global GDP growth.
This is a problem for the UK, which has a bigger economy and a larger trade surplus than China.
And it’s a problem, the UK’s own economic secretary, Vince Cable, warned in his Autumn Statement this year.
“I’m concerned about China becoming a big market economy in the future.
That will mean a lot of jobs for the people of the UK.
But it will also mean that the world will become poorer, and more unequal, if we don’t make sure that we keep up with the pace of change,” he said.
That doesn’t sound like a very optimistic outlook for a country that is struggling to keep up, but in the long term, this might well be the most promising development in the FT article In the past year, China has seen its GDP growth slow to a crawl, while unemployment has soared to an all-time high.
But in the world’s most populous nation, the growth is still far higher than other developed economies.
It is, however, a different story for the Chinese government.
Its economy grew by 4.6 per cent in the first three months of the new year.
In comparison, the US grew by just 0.7 per cent and Japan grew by 2.6 percent.
China is now the biggest economy in world and the world is looking at a rapid increase in its exports.
This year, the country exported $15.4 billion worth of goods and services, a record for the first half of the financial year.
As it expands, China will need to do more to improve the lives of its people, particularly in areas such as healthcare and education, as well as in areas like education, infrastructure and trade.
In the end, this may be the biggest challenge the UK faces in a transition to a more modernised economy.