Among the two Asian giants, China and India, so many issues concerning explosive population growth, economic development and reforms, policies, corporate and governmental institutions have been trending on global media as well as other studies. However, both countries show numerous significant similarities as well as differences in the majority of these areas. Thus, this paper will contribute significantly towards shedding light on the state of the two countries by using recent articles highlighting the current affairs of the two nations. Likewise, similarities and differences painted by different materials will be considered while checking out on the economic situations of the two countries.
According to Liqiang & Yu (2017), the agencies responsible for the country’s highest economic planning strategies have adopted a move to expand their natural gas supplies due to increasing demand for the commodity. This step has been taken to ensure the security of natural gas products amongst the country’s nationals. Moreover, the approach has been accompanied by a reduction in natural gas prices to fight coal products in the market. This is in the bid to combat and reduce pollution which has been a significant challenge to the country. According to a report conducted by National Development and Reform Commission, NDRC, the demand for natural gas has tremendously risen resulting in sharp growth in its consumption. The Technology Research Institute in the country has further maintained that the consumption of natural gas is expected to hit approximately 230bn cubic meters by the end of the year. Accordingly, this consumption of natural gas is envisioned to attract more income for the Energy sector while enabling them to procure more resources to expand their production continually. However, NDRC has cautioned state-owned oil firms in exercising strict discipline when pricing natural gas products.
The recent Chinese economic trend, especially towards global circles, has continued to elicit unpredictability, economic skepticism, and suspicion. According to Goodman (2018), it is apparent that there exists economic hostility between China and the United States. This has been attributed to the tariffs imposed by the American government towards Chinese imports amounting to a staggering $60bn. This move has negatively impacted the Chinese government provoking China in retaliating against the United States in the same manner through imposing tariffs on their imports. This trade war has attracted concern from the World Trade Organization, W.T.O. with the Organization citing the violation of its rules towards economic cooperation among its members. However, an agreement on trade tariffs between the two nations is underway although the step has been challenged by numerous bureaucracies.
It is inarguable that China makes to the Second position as the world’s largest economy after the United States. However, a recent development marked by Prasad (2018) airs worries of whether the newly appointed head of the People’s Bank of China Mr. Yi Gang will live up to the task. His predecessor Mr. Zhou showed expertise on economic matters through initiating financial policies that saw loan rates integrate well with market conditions. This move enabled capital to move freely within and outside the Chinese country. However, Mr. Yi’s step to take office leaves the majority of the Chinese economy stakeholders with numerous questions concerning his capabilities of implementing favorable incentives for the banks for the good of the economy. Additionally, the country’s ability to repay their hefty loans is still uncertain under Mr.Yi’s rule.
India, Economy & Statistics (2018) shows that India is rapidly rising as one of the fastest growing economies in the world. This is by a recent study conducted by the International Monetary Fund, IMF. Similarly, there is a significant possibility that in the next decade, the country will have surpassed roughly two other economies that precede it. This growth, however, has been attributed to expanding the market size, government initiatives such as subsidies, production diversification as well as other financial measures such bank recapitalization among others. Thus, it is apparent that if the same pace is maintained this goal would be achievable in the next decade as projected.
Despite Indian rapid economic growth, some sectors of the economy are still experiencing slow developments. According to “What ails the Indian economy?” (2018) the country’s rapid development is being challenged by several factors. These factors are declining exports, insufficient human capital, and demonetization among other crucial elements. High unemployment rates have also been cited as the majority of Indians lack skills to be employed in the vast capital-intensive industries. Additionally, banks have also been accruing bad loans which further jeopardizes the vital sector of the country’s economy.
Rajadhyaksha (2018) claims that India has been enormously hit by the ongoing global economic storm. As a result, the Indian economy is being significantly threatened as oil prices shoot up, and trade deficit continues to widen. Moreover, there are also instances of creeping consumer inflation which has considerably raised the standards of living. Similarly, economic challenges such as fiscal deficit and weak business cycles have also been cited as among the significant economic challenges facing India.
Piecing all the articles together, it is apparent that China is ahead of India economically. However, the rate of unemployment in both countries may coincide due to the explosive population in both countries. Conversely, regarding economic size, GDP growth rate, and trade balances, China still seems ahead of India. Despite China’s economic advantages, it still faces social challenges such as gender imbalance, income inequalities, environmental degradation and corruption among other issues. Besides, India possess economic benefits such as favorable demographics, foreign remittances and comparative advantage, especially in labor-intensive firms. However, these advantages are hampered by corruption, unplanned urbanization, communalism as well as alarming poverty levels among other weaknesses.