export advantages of china (full version)
DESCRIPTION
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THE EXPORT ADVANTAGES OF CHINA
Data collected mainly in 2010
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TABLE OF CONTENTS
I. AN
II. THE EXPORT
III. CURRENT WORLD
INTRODUCTION OF
ADVANTAGES OF
REMAINED DISADVANTAGES OF
CHINA
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1. CHINA
ANINTRO
DUCTIONOF
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1.1. The PoliticofChina
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…IS LED BY THE COMMUNIST OF PARTY OF CHINA
FOLLOWING THE FRAMEWORK OF SINGLE – PARTY SOCIALIST OF REPUBLIC
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AND…
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NON – COMMUNIST
PARTIES to support CPC
8
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TOCOEXIST OVER A LONG PERIOD OF TIME ENGAGE IN MUTUAL SUPERVISION SHOW UTTER DEVOTION TO EACH OTHER SHARE HONOR AND DISGRACE SHARE WEAL AND WOE
WITH CPC
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China’s autonomous regions
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1.2. THEECONOMY
OFCHINA
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SINCE 1970s
From closed economy…
CHANGE
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SINCE 1970s
FROM COLECTIVIZED AGRICULTURE…
CHANGE
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SINCE 1970s
…TO ORIENTED ECONOMY
CHANGE
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SINCE 1970s
…TO liberalization of prices…TO autonomy for state enterprises…TO creation of a diversified banking system…TO development of stock market…TO rapid growth of the private sector…TO opening to foreign trade and investment.
CHANGE
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RURALPOVERTY
FROM 30.7% (1978) TO 1.6% (2007)
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URBAN POVERTY
FROM 31.5%(1990) TO 10.4% (2005)
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GDP (composition by sector) (2008 est.)
9.6
46.8
33.2
AgricultureIndustryServices
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GDP (PURCHASING POWER PARITY)
2008 est. 2009
est. 2010 est
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
$10.00
GDP (purchasing power parity)
Trillion USD
(Country comparison to the world : 3)
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GDP (PER CAPITA)
2008 est. 2009 est. 2010 est.5,600
5,800
6,000
6,200
6,400
6,600
6,800
7,000
7,200
7,400
GDP (per capita)
USD
(Country comparison to the world : 127)
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…HOWEVER
…
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…ECONOMIC DEVELOPMENT
GETS CHALLENGES
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rural laborers and their dependants relocated to urban areas to find
work.
CHALLENGES
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ONE-CHILD POLICY AGING COUNTRY
CHALLENGES
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DETERIORATION IN THE ENVIRONMENT
CHALLENGES
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Import and Export of China
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CHINA EXPORT MARKET
33%
40%
14%
13% HONG KONG U.S., JAPAN,
WESTERN EUROPEDeveloping Coun-tries
Commonwealth of Independent States and Eastern Europe tr
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THEDEMOGRAPHICS
OF
CHINA
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URBAN AND RURAL RATIO
47%
53%
2010
UrbanRural
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819.5 MILLION (2010)
LABOR FORCE
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Labor force - by occupation
40%
27%
33%
AgricultureIndustryService
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ONE-CHILD POLICY SINCE 1979
25% of China’s population would be age 65 or older by the year 2040
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CURRENT ECONOMIC
POSITION OF CHINA
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2010SECOND WORLD LARGEST ECONOMY
Ranking in GDPUnited States: $14.66 trillion USDChina: $5.88 trillion USDJapan: $5.47 trillion USD
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also the largest exporter and
second largest importer of goods
in the world
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2. THE EXPORT ADVANTAGES OF CHINA
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BEFORE…
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misallocation of resources and
wasted money since investment all came
from the government
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WHY AFRICA
exploring opportunities in international markets, especially in areas rich in natural resources
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WHAT WAS ACHIEVED?The trade and investment in Africa are becoming factors supporting China’s economic engine
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$50BILLION IN
2015 UP TO 70% COMPARED TO 2009
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the East African coast becomes important for naval strategy and the security of China
IN THE LONG TERM
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openly discussed the possibility of Chinese military set up bases overseas and sea power
of thought is emerging in China's plans.
ALSO
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WHAT ARE THE SHORT-COMING
China has provided Africa many loans
valued billions of dollars with little
constraint conditions
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Strengthened presence in Africa contribute to Beijing’s position on the international stage.
HOW HAS THE DOMINANT POSITION IN AFRICA HELPED?
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China’s strategic investment in Southeast Asia
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LAOSinvestment in hydropower is considered a strategic focus
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CAMBODIA Economic cooperation bilateral trade TransportMining and oil and gas explorationseabed oil and gas
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EAST SEA Liu Jianchao said at the news conference in Manila that China,
Vietnam and the Philippines had a good start in the project joint seismic survey, a three-party cooperation project on the
East Coast.
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In sum, the advantages of China is created mainly by its POLITICS• Single-party framework under the
CPC• Foreign investors do not consider
the autonomous regions as a trouble
• Good relationship with Hong Kong and Macau helps in export
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RMB MONETARY POLICY
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IN POST – 1990
Chinese monetary policy is modeled with a McCallum type rule
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JULY 14, 2008
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AUGUST 24, 2009
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MONETARY TOOLS MARKET BASED NON – MARKET BASED
QUANTITY BASED • Issuance size of central bank bills (Phát hành tín phiếu) • Size of repurchase and reverse repurchase arrangement • Reserve requirement
• Targeted central bank bills • Special deposits from selected banks • Foreign currencies swap • Control on credit
PRICE BASED • Issuance rate of central bank bills • Rate of repurchase and reverse repurchase arrangement • Benchmark lending and deposit interest rate
• Some regulatory changes is used to change market behaviour, varying the floating band of interest rates.
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3.Current world remained disadvantages
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the ratio of exports to Russia and Brazil have declined
substantially. In addition, exports from China to South
Korea, Ukraine, Canada and Hong Kong also declined
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The export model with the
expansive method to obtain a
large number of quantities
mainly has not changed
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The technological product export field
following the concentration way
of Chinese enterprises is quite
"slow
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The export of high quality products of new industry and infrastructure construction industry have not appeared the
breakthrough
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Obstacles of Trade Protectionism for bringing goods into world market are increasing.
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its advantage of a young labor force will
not last longer if there is no any adjustment to
the present process of reducing fertility.
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How come a country with the economy standing at
the 2nd position of the world has the statistics reflecting of a low living standard of its citizens
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REFERENCES
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