After North America, Europe, and Japan, the area of China, Taiwan, and Hong Kong "is a fourth growth pole in the world economy" (Jue 108) which in 1994 was expected to double in size by 2002. Today, the growth rate is still on track to fulfill that prediction. Recent Chinese economic policies have shot the country into the world economy at full speed. As testimony of this, China’s gross domestic product has risen to seventh in the world, and its economy is growing at over nine percent per year (econ-gen 1). Starting in 1979, the Chinese have implemented numerous economic and political tactics to open the Chinese marketplace to the rest of the world. Chinese reform measures even anticipated the rush of foreign investment by opening newly expanded industries to out-of-country investors. As trade expands globally and countries within geographical proximity and of similar cultural descent and philosophies ally themselves in order to better compete on a world level, we are seeing the development of increasing number of geographical trade alliances, whatever the underlying reasons behind each. The alliances that have been in place for a while are proving to be very successful in competing in the international markets, stimulating the economies of nearly all of their member states. Effects of this change in economic strategy by a world power can be felt by practically every nation of the globe involved in international trade. The change in the amount of imports and exports to and from China will increase the demand on countless markets. Also, with all the foreign investment China is receiving, the socialistic republic will only grow more and more interdependent upon the world economy. However, the impressive growth rate of China’s economy is not without its shortcomings. Problems such as inflation and inefficient state-owned enterprises plague the rise of the Chinese economy. When China opened its economic borders 19 years ago, e...
