China is considered a developing country. Interestingly, it also has the second-largest economy in the world. This paradox may seem impossible. In reality, however, this paradox has taught the country’s economic leaders valuable lessons about how to most successfully engage in the global economy. By aiding other developing countries, China’s economic strategy has become one of the most effective in the world.
In 2000, China began a mission lending aid to countries with underdeveloped economies. Chinese government officials recognized their own economic stability and began to implement assistance initiatives in developing countries with which China had connections through trade. The initiatives, which are still in existence today, improve education, sustainability, medical facilities and other aspects of daily life in these countries.
Many of these countries export more goods to China than to any other place in the world. Therefore, Chinese consumers are crucial to the growth of the economies of these African and Asian countries. In response, the Chinese government recently has lifted tariffs on some imports from these developing countries.
China’s decisions to help other developing countries are more than acts of goodwill; they are intelligent business initiatives. In providing assistance and allowing developing countries’ markets to flourish, China is building trusting relationships with valuable trade partners.
Establishing trade relationships is vital in the global economy. China and its partners know that they can count on each other for fair trade and support.
China and many other developing countries engage in relationships through the South-South Cooperation. The South-South Cooperation allows developing countries to collaborate to form strong trade relationships and share strategies that may help other countries escape the barriers of poverty. China has been an active member of the cooperation for many years.
By helping to lift developing countries out of poverty, China can expect a great return of help from them in the future. As previously stated, China is a developing country itself. While it provides assistance to many places outside of its borders, poverty still exists within the country.
China’s economic strategy sets a positive example for other global economic leaders. It has used foreign assistance as a successful way to ensure strong trade relationships, return investments and hope for future repayment. China’s economy is proof that foreign assistance offers more help than harm to a country’s own financial status.
– Emily Walthouse