Today, China’s economic position may appear to be in decline. However, the actions taken by the rest of the world tell a different story – they are actually helping to boost China’s economy. This raises the question: How is this possible? Many economists argue that it is our collective efforts that are driving China’s economic growth.
War
The ongoing conflict between Russia and Ukraine has resulted in a deep division across the world, with individuals falling into two categories: those who support Russia and those who support America and European countries. In response to this division, several nations have opted for a common approach and initiated dialogues with China. Notably, countries like France, Argentina, and various African nations have begun engaging with China to navigate through these challenging times.
Crude Oil
India’s demand for crude oil from Russia has been on the rise, driven by the attractive pricing offered by Russia. Initially, both countries agreed on a rupee trade settlement, but due to India’s high import and low export volumes with Russia, India is now also paying in Chinese yuan for its crude oil imports from Russia.
Manufacturing
The world is witnessing the rise of China as a global manufacturing hub, as it strives to meet the ever-increasing demand for products worldwide. However, it is important to note that developing a manufacturing infrastructure comparable to that of China will take several decades. Currently, due to inflation, there is a significant need for products from China to help stabilize global inflation rates.
Chip Technology
After Taiwan, China emerged as the leading country providing raw materials for chip technology to meet the growing demand.
Conclusion
While China’s economic position may seem to be in decline, the actions taken by the rest of the world are actually helping to boost its economy. The ongoing war between Russia and Ukraine has resulted in countries seeking common ground and engaging with China to navigate through these challenging times. Additionally, India’s increasing demand for crude oil from Russia has further contributed to China’s economic growth. These collective efforts demonstrate that it is not just China’s internal factors but also external factors that play a crucial role in shaping its economic trajectory. As China continues to engage with the global community, it is likely to find new opportunities for growth and development.