Economic growth of China and Singapore ---- Aloysius

During this week's CID lesson, we learnt about China's rapid increasing growth of economy. China's economy has been increasing rapidly since the past few years with an average of 10% for the past 3 decades. Well, even though other countries such as Japan, South Korea, and Taiwan managed to grow rapidly for quite awhile, they were unable to sustain as much as China. There are many reasons how China managed to rapidly increase its economy and I will be typing about 3 reasons.

The first reason is due to China's massive population and its great amount of land. With a massive population, there would be cheap labour as more people are available to do the job. With its great amount of land, it would allow the building of factories at way cheaper cost thus increasing productivity. Hence, allowing China's GDP to gradually increase.

The Second reason is that China has a low tax rate of 25%. With its low tax rate, it allows more and more countries to buy goods from it at cheaper costs compared to the US which has a higher tax rate(33%) thus increasing more goods bought and hence also increasing productivity of goods. Hence causing China's GDP to gradually increase.

Lastly, China's involvement in the World Trading Organisation has allowed it to gain much more reputation as well as increase its revenue as there will be other countries trading with China. Furthermore with China's low tax rate, many other countries would be very interested into trading with China and Hence causing China's GDP to gradually increase.

All in all, I feel that Singapore should aspire to be like China and also maintain good relations with China so as to increase more trade and benefit economically for both parties.