China' economy

  China's economic growth has been increasing over the few years. It has overtaken Japan to be ranked no. 2 in the world in terms of total GDP( Gross Domestic Product).

There are many reasons for this... 

  Firstly , it has a huge population size and hence there will be more manpower which results in more work being done.It has a big land size which allows more space for office buildings, residential and commercial building. Secondly,China is also endowed with natural resources such as coal,natural gas and steel therefore they can cut down on costs from importing these goods from overseas.China's corporate tax rate is relatively low at 25%, and this attracts foreign investors to the country to do business. Lastly, China has joined WTO and this allows them to have access to more international markets for their exports and allow more foreign investors to trade with them .

  Although China's GDP is very high , its GDP per capita is very low, in fact even lower than Singapore's. This means that although China is rich, but the people may not be rich,due to the fact that money has to be distributed to many more people. The income gap widens and unfortunately, the rich gets richer and poor gets poorer. 

    This is a positive sign for Singapore as we are one of the closest trading partners with her. Thus, if China prospers , we would prosper too and vice versa. Some Singaporeans may be even migrate to China to start a new life there .