China’s Economic Status in 2021

China's Economic Status
China is part of Southeast Asia and the third-largest country in the world. In 2020, China’s economic status declined due to the COVID-19 pandemic as businesses shut down and a halt on exports resulted in a loss of $2.1 trillion. However, as of 2021, the country is gradually recovering from the impact of COVID-19.

Why China is Growing so Fast

The Central Economic Work Conference (CEWC) had initially estimated a 6% growth for China in 2021. However, in 2021 so far, China has jumped to an astonishing 9% GDP growth. This increase is due to COVID-19 vaccine distribution throughout the country, which has encouraged China’s president and government to reopen businesses. China’s leaders are also working to provide more goods and services, control carbon emissions and advertise the positives of reform. Retail sales have increased 34% due to the country lifting its restrictions.

Climate and Pollution Control

China took inspiration from California on how to reduce carbon emissions. California had a six-year plan to reduce carbon in the atmosphere. Ever since the U.S. withdrew from the Paris climate accord, China has taken the lead in guiding itself and the rest of the world in reducing climate change. In 2018, China’s Five Year Plan brought attention to the carbon market. Essentially, reducing carbon also reduces pollution and health conditions.

In China alone, pollution kills 1.6 million a year. Yet as of February 1, 2021, China’s carbon market policy officially emerged in an effort to reduce carbon in the country. Moving away from industrialization and providing a more significant focus on energy consumption could potentially provide future generations with a higher expectancy. Although it will take time to reduce carbon dioxide emissions due to China’s many coal-dependent companies, the country is already setting plans in motion to replace coal with solar power and windmills. The country hopes to achieve these goals by 2030.

Technology

Competition between the U.S. and China involving developing technologies has existed for decades. In highlighting potential on educational and technological advances, China has a chance of becoming one of the world’s most advanced countries. China has chosen to focus on basic research to lead to a higher percentage of research and development. Between 2021 and 2025, China hopes to create laboratories that focus on various categories such as biomedicine and energy efficiency.

Looking Ahead

By implementing these plans, China is on the road to recovery from the COVID-19 pandemic as vaccines make way for much-needed economic improvement. Moreover, funding for education, technology and businesses will keep China out of dept as it continues to rise as a world power. As trade opens back up, China will guide other countries in keeping their economies relatively successful, hopefully leading to a reduction in health issues and global poverty.

– Selena Soto
Photo: Flickr