Many analysts say that China's fast-growing economic strength is changing the trade pattern of the whole world. Some people criticize China's trade and monetary policies as disturbing, but others believe that the rise of China is usually beneficial to industrialized countries and some backward areas in the world.

As we all know, China has developed rapidly. In the past 20 years, China has maintained an average growth rate of 9.5%. According to some estimates, its economic strength is second only to that of the United States. China now has more than 1.3 trillion US dollars in foreign exchange reserves, the largest in the world. It is the third largest trading country in the world and still attracts the most foreign investment.

As the number of employed people in China is increasing by 25 million every year, many analysts often regard the rise of China as the main driving force of the world economic development. China's increasing employment of so many people every year is equivalent to adding a moderately industrialized country to the world economy every year.

Cause a new international division of labor

Chevray, an economist at Stanley Foundation, whose aim is to promote international political and economic cooperation, said that the rise of China has triggered a new global division of labor, with mixed results.

Cheval said: "China's huge labor market has had a far-reaching impact on the change of trade pattern. We have seen changes in the sources of different products. We see that the United States, Europe and Japan are more concentrated in producing high-tech and very specialized products, which has brought great economic benefits to these countries. At the same time, we also see that many kinds of manufacturing industries and the production of products that are relatively low in the economic development chain have moved to China. What we are experiencing now is a chaotic process of economic transformation. Because it is difficult to know exactly the future development direction, it has caused some people's concerns. "

In order to maintain the huge growth, China has to buy a lot of mineral products. China accounts for 5% of the global economy, but consumes 20% of aluminum and copper, about 30% of steel, iron ore and coal, and 45% of cement every year.

Expanding resources has benefited many countries.

Ronald McKinnon, an economist at Stanford University, said that China's huge appetite for resources has benefited many countries.

Mckinnon said: "It has brought about great changes in East Asian countries. But its purchase of primary products in the global market has brought benefits to Latin America. Countries such as Chile, Argentina and Brazil are exporting a lot of raw materials to China. Therefore, we have seen that there has not been any economic crisis in Latin America recently. "

Affect the global lending model

Mckinnon added that China's wealth is also influencing the global lending model. He said that unlike the World Bank, Beijing has been providing a considerable amount of credit to developing countries without any political conditions.

Mckinnon said: "Their loans are more politically neutral. They build roads, power plants and new ports there because they want raw materials. They don't ask about local government politics. This is why Africans don't mind China's investment, and investing in China is more comfortable than many Western governments. "

However, the United States and Europe are critical of China's policy. Earlier this year, the US government complained to the World Trade Organization about China's export subsidies and piracy, and announced that it would impose tariffs of 10% to 20% on some China products.

Washington has also stepped up pressure on Beijing to let its currency appreciate. They say that China's undervalued currency and low-cost labor give China an unfair advantage in international trade. By artificially lowering the value of RMB against the US dollar, China's exports are cheaper for American consumers, while American exports to China are more expensive, which makes the already worsening trade deficit of the United States worse and brings instability to the American economy.

Some experts say that the value of the RMB against the US dollar should increase by at least 40%. Clyde Prestowitz, president of the Institute of Economic Strategy, a Washington think tank, said that the disturbing trade surplus between China and the United States reached $233 billion last year, accounting for almost 30% of the total US trade deficit. He pointed out that Beijing's policy is the same as that of most East Asian countries, including Japan.

Prestowitz said: "Japan, China, South Korea, Taiwan Province Province and Singapore all pursue export-oriented strategies. They all manage their currencies to keep them below their real value. They are all maintaining a high savings rate of 50%, investing heavily in export industries and relying heavily on exports to the United States to promote economic growth. "

The trade surplus is ultimately beneficial to the United States.

Chever of the Stanley Foundation believes that China's expanding trade surplus with the United States will eventually benefit the United States.

Chevre said, "If a Thai company producing low-cost products exported to the United States moves its production base to China because the manufacturing cost in China is lower, it will not have a negative impact on the American market, because these jobs are not in the United States. But because products entering the United States are cheaper now, this is a good thing for American consumers. "

Chevray said that when doing business with China, it is difficult to say who is the winner and who is the loser.

Chevre said, "For example, when you talk about American companies or multinational companies that produce products in China, do you think China people have an advantage or the interests of a company have an advantage? If the United States benefits, will China continue to support our budget deficit or provide cheaper products to American consumers? Is this an advantage of the United States or an advantage of China? This is more complicated than who has the upper hand and who suffers. "

The pollution loss is equivalent to 5.8% of GDP.

A serious problem brought by the super-high-speed economic development in China is the environmental damage and pollution it brings to China and other countries in the world.

Water pollution and lack of clean drinking water are some of the most serious problems facing China. Many canals, rivers and lakes in China are seriously polluted by agriculture, industry and life. It is estimated that 20% of China people live in heavily polluted areas.

According to the calculation of China government, in 2004, the loss caused by pollution was $67 billion, equivalent to 3% of GDP. According to the statistics of the World Bank, the annual loss caused by pollution to China is equivalent to 5.8% of GDP.

Nevertheless, many experts said that as the long-suppressed demand of China's huge population is gradually released, domestic demand will gradually increase, and China's economy will continue to maintain rapid growth in the coming decades. (