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Global Threats Posed by India and China on EU

May 26, 2014 0 Comment

The emerging states notably India and China are undergoing economic revolutions. These nations are developing new capabilities as well as aggressively taking part into business sectors once considered as preserves for developed western economies. Contextually the change happening in India and China is spearheaded through technology upgrading and use of innovation. This economic revolutions occurring in India and China has impact on European Union particularly in global market competition. Since 1978, China initiated drastic economic programs that aimed at stimulating economic growth and development. Since then, the Chinese domestic economy has recorded drastic and progressive high percentage growth. The economic growth in India and China is due to policy changes that have attracted investors. For instance, in China, the policy change for Chinese state ownership to individual Chinese, joint ventures, and foreign owned enterprises opened more avenues for investment. In spite of ownership liberalization, the Chinese government still controls major economic sectors like manufacturing, transportation, financial services and energy. The Chinese economic growth in each year has gyrated between 8 and 10 percent since 1978.

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