Enhancing the Competitiveness of the Chinese Economy on a Global Scale

Abstract

In the modern competitive landscape for global economic leadership, it is crucial to analyze the trends in enhancing China's competitiveness, currently the world's second-largest economy. This article examines a comparison of GDP growth dynamics among leading countries – the United States, China, and Japan. It is determined that China has begun to outpace the United States in terms of growth rates from 1970 to 2022, indicating the potential for China to become the largest economy. These trends are also evident in the increasing share of China in global GDP alongside a decrease in this indicator for the United States and Japan. Some impetuous transformations are taking place in the realm of international trade, as China's exports and imports continue to grow, allowingto maintain a dominant position. In terms of quantity, China demonstrates a competitive position (second place) in attracting and exporting foreign direct investments. Also according to other analyzed quantitative indicators, China is competing with the United States for leadership. However, the analysis reveals a gap compared to developed countries concerning GDP per capita and overall competitiveness levels. Regarding the former indicator, there is an overall positive trend, despite a significant gap compared to developed countries. As for the latter, which is an integral measure, a negative trend is observed in 2022. Furthermore, the carried out analysis highlights an increase in competitiveness in the field of innovation, which serves as a driver for the development of all sectors of the economy and influences the competitiveness of Chinese goods and services in the global economy.

Keywords

• competitiveness
• global leadership
• china
• exports
• imports
• innovative development
• foreign direct investment.