Country Analysis
China’s trade and economic situation
China is a country located in the southeastern part of the world, bordering the Pacific Ocean. Its immediate neighbours are Mongolia, Afghanistan, India, Bhutan, Burma, and Nepal. The people’s republic of China has a current population of 1.4 billion and is the third-largest country after Russia and Canada. It has a total landmass of about 9,596, 960 square kilometres, and 97.2% of its total area is dry land.
China has an annual gross domestic product growth of about 25.3 trillion U.S dollars, and it’s per capita income is 18,110 U.S dollars. China’s gross domestic product has been projected to grow at an annual rate of 6.6% and a 6.9% yearly growth, compounded to five years. Despite its immense population growth, anyone would expect that China is struggling with uncontrolled national unemployment levels. Still, this country only has a 4.4% unemployment rate, which could be lower, considering that structural unemployment is factored in these calculations.
Structural unemployment is experienced in all economies because of the number of jobless graduates available in the job market every year as they search for employment opportunities.
China has a significantly low total inflation index of 2.1%, contributing to a higher purchasing power and a more excellent value for your money. China has been ranked 103rd freest country with a global economic index of 59.5. The financial index measures the rate or the degree of freeness of doing business. An economic index encompasses freeness in terms of the flexibility of the rules and regulations of starting companies, the tax regimes associated with doing activities, and maximum returns that can be derived from doing business in China. The government is the primary determinant in enhancing a country’s freeness of trade. The government also acts as a determinant in improving foreign direct investment, which has a positive contribution towards overall economic growth.
China emerged twentieth in the regional economic index performance out of the possible forty-two countries making up the region. Its aggregate increase in this ranking has been attributed to China’s increasing business freedom and property rights score. The easing of doing business terms has witnessed a substantial increase in the number of foreign investors setting up businesses in China, thus, contributing to foreign direct investment inflows of $ 139.0 billion. China is also holding high ranks in labour and monetary freedom, making it much easier to do business in China. China has yet to introduce some critical financial sector reforms that will drastically increase the monetary liberty in China.
The country’s favourable trade and economic situation have enabled Petro-Canada, a Canadian multinational corporation, to thrive and expand its operations, to the extent of being the most abundant gas and oil distributor and holding the most extensive sales revenue. Petro-Canada is also the leading oil and gas company in the world. China’s rising economic and business index scores have continued to play a vital role in enticing foreign oil firms, not forgetting Petro-Canada. China’s strict regulations on the dangers of fuel adulteration have also played an essential role in ensuring that Petro-Canada’s products are authentic and safe for customer use.
Finally, China’s gross domestic product and per capita incomes have steered Petro-Canada to more significant revenues because high per capita incomes signify that the majority of the citizens are well off and can, therefore, build the company revenues through aggregate consumption of their products.