Appraisal of Impact of Financial Crisis on China`s Economy

Abstract

In this paper, it will be focus on effect of subprime crisis on China. Nowadays, China economic has become one of the most important part of global economic, the economic growth rate of China had increased rapidly since the beginning of 21 century. The goal of this thesis is go through subprime crisis in U.S, first to know it better (e.g. background, reason, influence), and then, we will find what it brings to China economy and financial market based on these information. For better reading, it will generally mention what is the subprime crisis in U.S, types of financial crisis, how it form and influence others countries generally in chapter 2, through reading of chapter 2, readers may know profile or some basic theory for deeper reading. After that, in chapter 3, it will mainly describe the beginning of subprime crisis in details. Content includes background of subprime crisis, reason of crisis, financial market structure in China and the method that China government to save national economic. Then, there are a lot of financial indicators (e.g. GDP growth, unemployment rate, inflation rate, currency, banking situation) will be explained in chapter 4. These indicators are the most important numbers for economic analysis, these numbers will explain economic problem better and easier to understand, so it will be the major part of this paper. At last, conclusion will figure out what is the most important reason that effect China economy. And what we can learn from this paper.