China is the second largest economy in the world with the largest population in the world. Chinese market has never failed to attract human’s attention. What is more, the Chinese companies also take a large portion of international market. World Economic Forum issued Global Competitiveness Report 2016-2017 to evaluate the Global Competitiveness Index (CGI) for 138 countries in the world. The CGI could evaluate the competitive advantage of each countries from many aspects, which includes three different subindexes and 12 pillars.
China has developed for decades’ years since the Chinese Economic Reform and Open Up policy in 1978. Now, China is the second largest economy in the world and the largest economy in East Asia and Pacific area. China has experienced a high growth rate of GDP that is around 11% to 12% for many years. Now, the Chinese economy is on the path of steady growth (Zheng, 2014). Compared to the past time, the growth rate of Chinese GDP slowdown, which is around 6.5-6.9% (Song, 2017). The main target for the Chinese economy, which is set by the Chinese government, is conducting the reform in all aspects. For example, the Chinese government is trying to keep the inventory in a low position, with stimulating the domestic demand. What is more, the Chinese government also tries to lower the leverage rate of both governments and financial markets. The leverage on the government side is focusing on the high debt of local governments. Chinese local governments issue an increasing number of bonds to finance the infrastructure construction. To avoid the financial risk of the governments, the central government of China regulated the bond market since last November, keep the yield to maturity in a high position in order to push the fund out of the bond market. What is more, the Chinese government also limit the municipal bond issuing. In this way, the central government could keep the risk under the control.
From the Global Competitiveness Report 2016-2017, the author, Klaus Schwab, who comes from the World Economic Forum, gives readers a better knowledge of the global competitiveness of each country in the world. China, which ranks 28th place for three years, shows its competitive advantage compared to other countries, such as Market size and macroeconomic environment. Meanwhile, there are still many aspects that Chinese government need to improve, such as higher education and training, technological readiness, financial market development, and goods market efficiency. As the second largest economy in the world, China has made many achievements in economic development. However, compared to the United State that is the largest economy in the world, China still has a long way to go. Fortunately, the Chinese government is trying to open up the market and get involved in international competition in recent years. The Chinese market and Chinese companies would be more promising in the future.