АНАЛІЗ СТАНУ, ТЕНДЕНЦІЙ ЕКОНОМІЧНОГО РОЗВИТКУ ТА ПОЗИЦІЇ КИТАЮ В ГЛОБАЛЬНІЙ ЕКОНОМІЦІ

Abstract

The paper is devoted to the analysis of China's position in the global economy. China became one of the fastest growing economies in the world since it’s opening to foreign trade and investment in 1979. The main factors that contributed to rapid economic growth were defined as: large-scale capital investments, rapid growth in productivity, economic reforms that led to the efficiency increasing of the economy, production growing and resources expanding for additional investments in the economy. The real annual growth of China's GDP from 1980-2022 was analyzed. From 1979 to 2017, China's real GDP grew at an average of almost 10% annually. But the COVID-19 pandemic and the measures taken to contain it caused the biggest slowdown in China's economic growth in 2020, to 2.2%. A comparison of the shares of China and the United States in the world GDP by PPP was made. Accordingly, the conclusion – it was the first case in history when China was the world's largest economy in 2017. It was determined that the United States and China are the two largest economies in the world by both nominal GDP and GDP per PPP (purchasing power parity). The US leads in nominal terms, while China leads in PPP terms, overtaking the US by 39%. Over the past few years China has become the world's largest exporter and ranks second place among the world's largest importers thanks to its huge active trade balance. According to the World Investment Report 2022 of the United Nations Conference on Trade and Development (UNCTAD), the United States and China are the main recipients of global FDI (foreign direct investments), as well as the main investors. As China continues to lead the global recovery from the adverse economic effects of the COVID-19 pandemic, foreign multinational corporations are doubling their investments in China, establishing thousands of new firms and expanding existing ones. The main recipients of Chinese FDI are Hong Kong, the US, Singapore and Australia. Hong Kong absorbs the largest amount of FDI from China and plays a special role. The distribution of Chinese FDI by sector shows that Chinese investors most prefer investments in leasing and business services, financial services and manufacturing.