|Africa: China's Economy Good for Global Development|
By Erem Emmanuel, 17 April 2012
China, the middle income country is currently the second largest economy in the world holding the biggest percentage of foreign exchange reserves than any other country.
The contribution of the Chinese economy to global development cannot be ignored especially to the developing nations.
The growth in Chinese exports is comparable to none; it is the biggest exporter with a share of 9.6% followed by Germany.
The tag, "Made in China" is all over the globe. According to records from the Export-Import Bank in China, the country has over US$3 trillion in reserves. The country is currently lending and investing in the developing nations more than the World Bank.
Of course, the global financial crisis especially in Europe has had a negative impact on the exports, slowing growth to about 8.1%, however, the financial position of the country remains favourable and far from the red zone.
The manufacturing boom is largely due to the availability of cheap labour in its various provinces which attracts many manufacturers like Apple to this part of the world.
China is a "big gun" in the financial world investing a lot in the European financial markets that is getting the Government large amount of returns enabling it to keep ploughing back its returns into the same financial markets as well as invest in other ventures.
The country is playing a crucial role in helping the Euro zone regain strength. Austerity seems to be the direction in which many developed nations are heading yet China always seems to be expanding its budget.
Uganda, my home country is no exception to the Chinese's generosity, from roads to powerful structures such as the newly completed complex that will accommodate the Office of the President and that of the Prime Minister.
We have a lot in terms of technology, education and economic management that we stand to gain through partnerships with the Chinese Government.
Generally, the BRICS (Brasil, Russia, India, China & South Africa) are the fastest growing economies in the world at the moment and have invested a lot in the developing nations though their own infrastructure and service delivery may not be the best compared to the already developed nations that provide the biggest amount of aid to the less developed nations.
This has enabled the BRICS consolidate support from the less developed countries at the UN, IMF & World Bank. China's policy of fixing the exchange rate of the Yuan to make exports cheaper also gives the country an edge over other players in the world market.
The only problem is that the country is too dependent on export revenues and heavily relies on oil imports from trade partners hence rendering it prone to sudden demand fluctuations in the global market for its products.
China is surely heading in the right direction economically and needs to be recognised for its contribution to global development.