China wants bigger role in world economy

February 11, 2009

http://www.vancouversun.com/Business/China+wants+bigger+role+world+economy/1272476/story.html

This article basically talks about how China is currently showing slight signs of being the first major economic powerhouse to be undergoing a slight rebound from the wrath of the economic downturn. In a paper sent out from Beijing, it has set out its position on calls for more power for developing countries at the World Bank and International Monetary Fund, according to a report from Reuters. In the Chinese paper it also demanded a "strengthen oversight over macroeconomic policies of all parties, particularly the major reserve currency economies, and provide oversight information and improvement recommendations to its members on a regular basis." The Chinese paper is scheduled to be presented at a key meeting for a group that will consist of 20 leading industrial nations that will take place on April 2 in London. For the time being, China is currently still being expected to have a rather shaky GDP growth in 2009, but in recent weeks, there have been some practical signs of resurgence from the Chinese economy. Loan growths are heightening at incredible speed, steel traders are restocking, and materials prices and shipping rates are rejuvenating strongly. With the sudden improvement in which China's economy have cultivated, new U.S. Treasury Secretary Timothy Geithner said the new administration in Washington needs "to send a strong signal that we are ready to give developing countries a voice within the IMF that is commensurate with their importance to the world economy." Even analysts were extremely surprised to see the sudden rebound right now for the economy in China. It is still uncertain right now when China's economy would be fully healed from the global recession, but at the present stage the economic activity in China seems to be maintaining slight stability.

Connections to Introductions

The connections i make with this article and chapter 5 has to do with the term recession. According to the textbook, an economic recession is described as a drop in economic activity and this is exactly the current state of our economy at the present stage. With the present economy undergoing a price decrease, countries are encouraging people to put more money into the economy so they do that by lowering the prices of goods, thus making this a complete opposite of what inflation is. This is called a deflation because right now there is an increased in unemployment since there is a lower level of demand in the economy. My article directly ties into the concept of an economic recession mainly because this article is talking about how China seems to be the only country in the world right now that is starting to feel a rebound from the global recession. This significant current event is very important, because with China's economy being in rebound, this also automatically turns China's economy into a big role in the world economy. My article also demonstrates a triumphant victory over the global recession in China's part.

Reflection

Personally, I think it's good to know that at least one country is actually rebounding from the terrible global recession. Unfortunately, the reason why China economy is probably maintaining such stability is vastly due to the fact that they have shored up a lot of money from recent years, thus this can also be a blessing in disguise because other countries are different from China. Countries like Canada don't have as much money as China, thus this can possibly explain why our economy have still not shown much improvement. Another factor which explains why China's economy have rebounded so quick has to do to the fact that China has a large population, thus making money flow easier. However, in Canada and all of the other countries, they are all stuck in a situation where the money is not flowing, but it is actually "frozen." Hopefully, by the end of 09 the economy for not only China, but the whole world will resume stability once again.