Introduction

As we all have heard, The Great Recession is known as the global economic crisis that began in 2008 and its origin was in the United States. Although, it's considered that the crisis began in 2008 especially before the drop of the american bank, Lehman Brothers, the signs appeared in August 2007 with the bankruptcy of other minor banks. The great amount that the states allocated to the bailouts and the fall of the public revenue (and some governments did big reductions in public expenses) implied an increase in poverty in a big part of the world.

China's GDP has fallen down since the crisis began. However, this country has not been affected by the big recession as much as other states, like US or the EU. But not all is good news for this country. Exports have fallen down by 45% since 2007, what clearly reduces its production in a very high quantity.

There are lots of versions about why China has not been that affected by the crisis, but one of the most accepted is that China started owning enterprises to control its aggregate demand and used an expansionary monetary policy while combining it with a fiscal expansion.

Overview of China´s politics

China is governed by the Communist Party of China, whose president is Xi Jinping. The economy was affected by this because before, under the called "Command economy", all firms were obliged to have a statal control. Now, under the "market economy", it is not necessary, at least not at all.

The Government is composed by the "National People´s Congress" (NPC), the "President" and the "State Council". The NPC is the most important organ in China in power terms. This organ meets once a year to aprove all the policies, laws, budget...

China´s economy in the last years

According to the Chinese Government data, the GDP in China has grown up by 6,7% in 2017. This was caused by an increase in exports from China, retail sales and property market sales. Of course, this economic growth has little print behind. A lot of workers have had to move on to the big cities, leaving their families to work, increase in air and water pollution, rising borrowings which have provoked owngrades in China´s sovereignty debt...

Here we can observe in the following graph the economic growth in China, as explained.

It is true that the economy in this country is growing at a higher rate than other countries. For example, the economic growth in China is about a 7%, while in the United States it is holding more or less steady by a 2%.

Nevertheless, some experts analyzing chinese data argue that this data has been manipulated and that it is a little bit lower.

Even though, Chinese economic growth is higher than the majority of other countries.

Watch this video to understand the effects of the crisis in China