Key growth drivers for the People's Republic of China

Abstract

Subject. We investigate the key factors in the development of the national economy of the People's Republic of China (PRC). Objectives. The aim is to identify the most important factors that ensure the GDP growth of the PRC. Methods. The study rests on the general-methodological and system-information approach and applies methods of systems, comparative, structural, and logical analysis. The scientific novelty is the determination of the most important factors for ensuring the GDP growth of the People's Republic of China, among which export is the most important one. Results. We unveiled the main factors influencing the GDP growth, constructed a regression model that explains the economic growth of PRC by the variation of three the most important factors, i.e. gross investment, exports, and monetary (inflation). The study analyzed the trade balance of PRC and its dependence on the markets of other States, assessed the country export structure, and the need for reorientation of exports from U.S. markets to other markets, in particular, the countries of the Shanghai Cooperation Organization. Conclusions. The increase in China's exports will indicate that the country's foreign trade policy has sufficient flexibility and room for maneuver, and its foreign trade ensures economic growth through national production and international cooperation. At the same time, China has the ability to stabilize foreign trade, ensure global supply chains, and contribute to the promotion of global economic growth and economic globalization.