Maritime Manegement 2 Essay Example | Topics and Well Written Essays - 1500 words

Maritime Manegement 2 - Essay Example The strength of the economy, its location, resources, population size and political influence contribute to its power. During the establishment of the China’s economy that is in 1949, the economy was modeled on Soviet model as suggested by Wang and Chin-Keong (2004). This was after the communist revolution. As a result, China ended up its connection with the capitalist world. China’s economic model involved the formation of state controlled heavy industries which were financed by capital acquired from agriculture. China substituted its imports with domestic goods so as to acquire foreign exchange to buy goods and technology. China’s economy has contributed a lot to the development of the shipping operations which are part of their economy. China is one of the countries with the most ample shipping resources. The China’s coastal areas offer the highest percentage of the countries imports and exports value. This is an advantage as it creates a good environme nt for fast and healthy development of the countries maritime industry. With the development of the maritime industries, the economy of China has experienced continuous and strong growth momentum. This has led to an increase in both trans-regional and multinational trading systems. China’s maritime industry has been growing rapidly to meet the expanding requirements for foreign exchange. Since the adoption of its reforms and the open policies, the international shipping industry is now increasing while promoting healthy development of the industry. China’s economy has steadily grown since 1990. The steady growth in economic demands has brought a great opportunity for Chinese shipping industry development. China is currently one of the world’s largest countries capable of offering comprehensive package of shipping activities in the ocean. It fleets cover a greater range including traditional bulk and more value added tonnages. The China’s growing economy h as effects on transport routes between China and Europe. The economy has also contributed to the opening of the Arctic Ocean summer route for both countries according to Liu (2009). To provide healthy transportation of containers, there are number of challenges shipping industry should deal with. One of the challenges is how to survive the Arctic’s harsh climate. The development strategy behind this is enhancing the coordination between the two countries towards improving the condition of the Arctic Ocean. Secondly is the issue of occurring changes in the Arctic Ocean and its commercial implications. The growing Chinese economy is partnering with the Europe to counter the challenge. In Europe, china is the second major partner in trading activities after the US. For both countries that is China and Europe, maritime transport makes a vital contribution to their energy strategies. This has been through establishing more shipping routes and energy diversification. China and Euro pe have economic interest aimed at developing their routes of transport along the coast of northern Russia. To ensure safety in the Arctic region, Europe and China should improve their corporation in research activities. Should also enhance information exchange and add on the formation of reliable systems of monitoring and forecasting. Both countries should also provide safe and effective maritime operations in the Arctic Ocean. China’s political activities have developed with the expansion on the countries