China&39;s_Economic_Growth_and_Its_World_Influence(2)

Second, the import of large quantities of primary and light industrial products from China is conducive to the industrial restructuring and economic progress of developed countries, as the two can take advantage of each other's economic strength. Third, China's economic development has enhanced the country's demand for imports, which has expanded the exports of other countries. Last year, China's imports from ASEAN, Japan, Russia and Australia increased by 34 percent, 25 percent, 6 percent and 8 percent respectively over the amount in the previous year. This resulted in China's trade deficits of US$7.63 billion, US$5.03 billion, US$4.89 billion and US$1.26 billion with respective countries. In the first two months of this year, China's foreign trade exports and imports increased by 32.8 percent and 57.1 percent respectively, leaving a trade deficit of US$560 million. In the first two months, China's imports from the United States, Japan, the ROK, EU and ASEAN rose by 37.8 percent, 58.4 percent, 75 percent, 43 percent and 71.9 percent respectively over the amount in the same period of last year. (Data from China Daily) Following China's economic development and the growth of the Chinese people's purchasing power, the world will gain increasing benefits from the swiftly growing Chinese market. Take Southeast Asian countries for example. The fluctuation on their export market used to greatly exceed that on the global market. In recent years, however, along with the growth of their exports to China, the fluctuation on their export market has been reduced considerably.

Fourth, the surplus in the current account may bring along the outflow of a certain amount of capital, which will increase China's investment in other countries' assets. And finally, China's economic development has provided overseas businesses with broader prospects for investment in the country. Profits remitted abroad by foreign investors have increased continuously in recent years.

On the exchange rate of the Renminbi (RMB), owing to the downslide of the exchange rate of the US dollar in the international market, China