Brief Introduction to Chinese Economy and its Relationship with World Commodity Prices

Abstract

This thesis examines the intricate relationship between China’s economic development and global price dynamics across various industries. Since the implementation of economic reforms in 1978, China has transitioned from a largely agrarian society to a global industrial powerhouse, profoundly influencing international markets. This study investigates how China’s rapid industrialization and expanding demand for raw materials, such as oil, steel, and copper, have led to price fluctuations worldwide, contributing to rising commodity prices while simultaneously driving down costs in the consumer goods sector through low-cost manufacturing exports. By reviewing existing literature and analyzing economic data, this research seeks to identify the key mechanisms linking China’s economic activities to global price changes. This study provides insights into the potential impacts of similar developmental trajectories in other emerging economies, illustrating how economic policies, resource demands, and export-driven manufacturing contribute to shaping global market trends. Findings from this thesis can aid policymakers, economists, and business leaders in anticipating future global economic patterns driven by rising emerging economies