Chinese Influence:

It has been widely acknowledged in last couple of decades that as the second strongest
economy in world, China have exponential growth level in its GDP has also gave it immense
influence over UK and other major world economies.

China and UK Economic Correlation:

China has acquired notable influence over British economy from 2004 onwards and have
increased its trade in both perspective (imports and exports) notably. It can viewed from the fact
that even when UK was part of European Union before Brexit and has predominantly solidified
its place as only second to US, as UK’s biggest importer. These imports which were 3.3% at
start of last decade have risen over 7% in 2014. Most of the trades in UK which were comprised
of general trading goods that are more than 95% for whole UK were from China since the last
decade. The general imports of trades and services sectors have outgrown itself in UK economy
from China which in 2004 of value £11.3 billion has been grown to notable £ 37.7 billion as of
2014. This gives us clear depiction of Chinese influence over British economy where these
imports from China has given them clear dependence over their goods and services.

The exports from UK has not grown as respect to import from China, which have only grown
from £4.0 billion to gross total of mere £18.2 billion. Also because of this significance
proportion of difference in import and exports. UK has a notable trade deficit with China that is
only second to Germany for UK.

Influence over World Economy:

Now we will examine some of the factors where China influences some of the major world
economies through its economic policies. Some of the key aspects are discussed below:

Oil Dependence:

Although in current scenario where oil prices have been reduced drastically in an year or so that
are affecting major oil exporters around the world that countries whose economy relies on oil
exports such as Russian and other members OPEC. Whereas China’s diminished demand for
such commodity have significantly impacted these oil exporting countries.

Diminishing Product Value:

As discussed above, the prices of oil in commodity market have been decreased significantly
and it has was not any single commodity that faced such negative circumstances. Iron Ore,
copper and many notable commodities are among many of which China is always among top
global consumer due to high productions activity than anyone else. Due to slowed down overall
production engine, demand from China for all such commodities also diminishes. Such
downturn effect the exporting countries that widens from Australia to South Africa and Brazil to
Indonesia, whose respective economies are all dependent upon China and were greatly
affected.

Trade Deficits:
As the decrease in Chinese GDP expansion was widely noticed around the world, it has caused
a greater trade deficit for many notable economies around the world from UK to EU, many south
American countries and neighboring countries like Japan to South Korea. From 2014 when out
of all global trading when China was ruling the scenario, then onwards they have reduced
demand of its goods that experience a sharp decline of 15% only at start of 2015 and so on it
continues to decrease.

Domino Effect:

There are many countries around the world whose respective economy is either directly or
indirectly synced to Chinese GDP. If the demand from China for raw product or services is being
decreased then these directly related countries will also face a notable downfall in their
speculated GDP levels explain the domino effect. Such products and services may include raw
resourcest that China imports or finished products such as American Brands i.e. Apple or
General Motors being directly affected. Another scenario is of economies that are not directly
involved with Chinese economy but there product or service are indirectly subjected to greater
impact.