China, a country with a population of over 1.3 billion, has made a major change to its economy over the past three decades (Morrison). China is the most populous country in the world and accounts for approximately 20% of the world's total pollution. Its government, the Chinese Communist Party, has ruled the country for over 63 years since 1949. China has shown a great change in its economy since 1978. It has since become one of the fastest growing economies in the world ( Wiki answers). China may have started with very little money, but it now has the world's second largest economy. It is also the second largest importer and largest exporter of goods (Wiki answers). Some analysts think that China will become the largest economy in a few years (Morrison). Economic reforms were introduced in 1978 by the Chinese Communist Party. This introduction changed the economy, culture and lifestyle of the Chinese. After 1978, approximately five hundred million people emerged from extreme poverty (Morrison). This reform is now described as one of the greatest economic successes of modern times (Morrison). Trade also became more popular as China's GDP increased. The United States and China are now very close trading partners. In 2011, the two countries traded goods worth $503 billion (Morrison). However, the growth of China's economy has also raised concerns from foreign policymakers considering how this economic growth could affect other countries' economies and global world trade (Li). They also fear that the growing economy could cause other currencies' exchange rates to decline as well. I think this could lead to unrest in other countries to keep their exchange rates stable. With the worsening of the Eurozone crisis... middle of paper... From a personal point of view, I think that culture and tradition should be modernized not only in China, but throughout the world. I'm not saying that Chinese culture should be completely transformed, but it should be changed. This, in my opinion, will unite the world as one. If all the culture and tradition is changed, I assume the country will lose its identity, but small changes will make the country a better place, and trade is the best way to do that. To conclude my essay, I think trade has helped China's economy. After the economic reforms of 1979, China has changed a lot and trade is a supporting member. Besides its negative effects such as culture, trade has helped China a lot; and I, as well as other economists, predict that in a few years China will become the world's largest economy!