An Analytical Study of China’s Economic Rise and its Role in BRICS

Abstract

The growth of the Chinese economy in the last four decades can be described as nothing short of meteoric. This was implemented fully after the People’s Republic of China embarked on market-oriented reforms in 1978 whereby it has changed to be the second-largest economy in the whole world from being mainly agrarian. China’s growth has been driven by an increase in capital, growth in the labour force, and most importantly, an increase in productivity as a result of economic reforms. This rise has also affected the BRICS group of emerging economy nations which also China is part of. The largest economy in the BRIC has been China and the country has been at the forefront in the formulation of the group’s agenda as well as the promotion of more economic cooperation among each member. The reforms have also shifted the structure of China’s economy where agriculture was reduced from 30 % of the GDP in 1978 to 9% in 2023. The share of the industry has been constant at nearly 40% while the share of the services has risen from nearly 20% to 44%. China has become a country, which has developed very fast and it has pulled hundreds of millions of people from the poverty line. For example, while the poverty rate in China in 1981 was 88 % the poverty rate in 2019 was only 0.6% according to the data provided by World Bank. However, as the economy of China advances, so does its position as a key player in the world’s economy. China has become the second largest economy globally, contributing just about 18% of the world’s economy as per 2023 figures. China is also one of the leading trading partners of many countries in the world as well. As for the total trade in goods and services it stood at about $6 of China’s GDP in 2023. 5 trillion, which means this country is a global leader in terms of commerce by being the largest trading country across the globe. With the growth of China's economy, it can exert more power in international economic organizations and projects.