global+dynamics

David SUN MR.Garrels GD2 27/10/11

=The economic difference between EU and CHINA =

In the past 100 years, most people thought that in the western, the economic system is known to be the most superior system. However, the economic crisis struck the alarm of the error. ‍Under the impact of the crisis, corporate bankruptcies, shrinking social welfare, wages plummeted, unstable work, tuition increase. ‍Western myth of economic system seems to be broken ‍overnight ‍. At the same time, CHINA seems to have become more and more prosperous. China’s economy is more stable to that of the EU’s because China has a better economic system, the decreasing GDP of the EU and the serious debts crisis happening in the EU.

Compare EU’s economic system to China, the economic system of EU is market economic system while the economic system of China is planned economic system. The major difference between these two systems is that the market price mechanism guide all the production and sale of the products and service completely in a market economic system which is different from that the states guides these stuffs in a planned economic system. In the planned economic system, the production, sale and the distribution or resource are all guided by the government, and government own most of the resource and distribute them reasonable, so, the countries under this system would be affected by the market, so they don’t have problems from economic crisis. Compare to the market economic system, the planned economic system is a more stable and scientific community economic system.

By the end of 2010, the GDP of China had increased to $ 9,872,000,000,000.00 and is the second highest in the world while the GDP of GERMAN which is the greatest GDP among the EU is$ 2,960,000,000,000.00. From these two numbers, there is no doubt that China’s economic situation is better than the EU’s. Due to the impacts of economic crisis and different economic systems, amount of serious results have been caused. At present, people in china are having better life(-ives), they have more income and better social welfare. On the contrast, people in EU are suffering from corporate bankruptcies, shrinking social welfare, wages plummeted, unstable work, tuition increase.

The most urgent problem that was happening in the EU is the debt crisis, a lthough the EU has held a series of meeting(s) to discuss a solution, however, there is no practical solution come out. This kind of situation affect(s) the people that are losing their confidence on the EU steps by steps. some of the investors have recently sold their euro because the value of currency that euro against dollar has decreased to 1 .4 while the value of currency that RMB against dollar has increased to 0.157. Thus, the current situation of currency of CHINA is more optimistic than EU’s. In addition, because of the incapable government in EU, the debts crisis in some areas of EU are intensifying, and their prospects of regional economic recovery are bleak. On the contrary, the situation in CHINA is becoming better and better that not only the value of currency and GDP continue increasing but also the quality of people’s life are improving to a high level, so, the prosperity of CHINA is overt.

Based on all the above, EU are involving into a predicament that the economy of EU is declining while the economy of CHINA is growing stronger and stronger. Compare EU to CHINA it is obvious to identify that CHIAN has a more stable economic system, better GDP and optimistic trend in the value of currency, therefore, the economy of CHINA is better than EU’s.

Resource:

[]

[]

[]

[]