CHINA THE NEW CRONY
CAPITALIST OF THE EAST

By- Abhishek
Banswar
EASTERN SIDE
–
 CHINA

 MONGOLIA

 INDIA
 NEPAL
 INDIA
 PAKISTAN
 KAZAKISTAN
 JAPAN
 RUSIA
 BURMA
CHINA -THE RED DRAGON
 Formal Name- People’s republic of china
 Capital – Beijing
 Head of state – President Xi Jinping...
HIGHLIGHTS ON ECONOMY
OF CHINA
 GDP = $8,227,102,629,831 (8.22 trillion ,world bank,2012)
GDP growth rate 7.8 % (2012)
 ...
WHAT IS CAPITALISM ?
An economic system based on a free
market, open competition, profit motive
and private ownership of t...
WHAT IS CRONY CAPITALISM ?
A description of capitalist society as
being based on the close relationships
between businessm...
CHINA FROM
CORE
 “It doesn’t matter whether a cat is white or black , as
long as it catches mice.”

- Deng Xiaoping
(“chi...
SOME FACTS ABOUT CHINA
 China after 1980 has grew
tremendously

 World’s second largest Economy.
 GDP of almost double ...
ECONOMY OF CHINA


GDP-Composition by sector (2012 est.)
Agriculture-10.2%

industry-46.95%
Services-43%


Numbers of En...
 Exports- $1827.66 Hundred Million (may,2013)
TOP 10 CHINESE COMPANIES
 Top 500 Chinese companies were more than world’s Top 500
HOW CHINA IS GOVERNED

 National People’s Congress is the most powerful organ of
“PRINCELING” IN CHINA
NAME

COMPANY

RELATION

Wang Jun

Citic Group

Son of Vice Chairman

Jiang Mianheng

China Unicom

...
CRONYISM
 Lucrative sectors of the economy are reserved.
 2/3 of formal finance is reserved for State-owned Enterprises
...
Cont.
 80-100 million still on waiting list.
 Over 90%-1000 richest people are official or members of CCP(Chinese Commun...
WHAT WORLD SAYS  About 90% of China's billionaires are the children
of high-ranking government officials, says the

Wall ...
CONT.


Since the rise of the corporate state, China has gone
from being the most equal society in all of Asia to the
lea...
CONT.
 In China, the “class” system operates on several
levels. At the top of the socio-economic scale are
the “princelin...
CONT.


Almost all of China’s richest people have
made their money in state-dominated
sectors such as property and
constr...
THANK YOU
Upcoming SlideShare
Loading in …5
×

China the new crony capitalist of the east

500
-1

Published on

Find out why China is the new crony capitalist of East

Published in: Education, Business, Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
500
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

China the new crony capitalist of the east

  1. 1. CHINA THE NEW CRONY CAPITALIST OF THE EAST By- Abhishek Banswar
  2. 2. EASTERN SIDE –  CHINA  MONGOLIA  INDIA  NEPAL  INDIA  PAKISTAN  KAZAKISTAN  JAPAN  RUSIA  BURMA
  3. 3. CHINA -THE RED DRAGON  Formal Name- People’s republic of china  Capital – Beijing  Head of state – President Xi Jinping  Land size – Third Largest country after Russia and Canada  Population – 1.35 billion (world population clock, Dec. 31,2012) (19.08 % of world population)  Currency – Renminbi (Yuan)  Political parties – The Communist Party of China (CPC)
  4. 4. HIGHLIGHTS ON ECONOMY OF CHINA  GDP = $8,227,102,629,831 (8.22 trillion ,world bank,2012) GDP growth rate 7.8 % (2012)  Per capita Income - $8,394 (2011 est.)  HDI – 0.687 (2011)  Labor Force – 815.3 million (2010 est)  Inflation Rate – 4.2 % (nov, 2011)
  5. 5. WHAT IS CAPITALISM ? An economic system based on a free market, open competition, profit motive and private ownership of the means of production. Capitalism encourages private investment and business, compared to a government-controlled economy. Investors in these private companies (i.e. shareholders) also own the firms and are known as capitalists.
  6. 6. WHAT IS CRONY CAPITALISM ? A description of capitalist society as being based on the close relationships between businessmen and the state. Instead of success being determined by a free market and the rule of law, the success of a business is dependent on the favoritism that is shown to it by the ruling government in the form of tax breaks, government grants and other incentives.
  7. 7. CHINA FROM CORE  “It doesn’t matter whether a cat is white or black , as long as it catches mice.” - Deng Xiaoping (“chief architect” of the Chinese economic reforms)  A single party  A Feudal autocracy & a weak tradition of democratic legality.  Freedom of speech.  Judicial System.
  8. 8. SOME FACTS ABOUT CHINA  China after 1980 has grew tremendously  World’s second largest Economy.  GDP of almost double digit.  Largest Exporter of the world  Taking power from West to East
  9. 9. ECONOMY OF CHINA  GDP-Composition by sector (2012 est.) Agriculture-10.2% industry-46.95% Services-43%  Numbers of Enterprises State-owned enterprises : 1,92,000 Collective enterprises Private Enterprises : 4,56,000 : 19,80.000 (Source:www.china.org.cn)
  10. 10.  Exports- $1827.66 Hundred Million (may,2013)
  11. 11. TOP 10 CHINESE COMPANIES
  12. 12.  Top 500 Chinese companies were more than world’s Top 500
  13. 13. HOW CHINA IS GOVERNED  National People’s Congress is the most powerful organ of
  14. 14. “PRINCELING” IN CHINA NAME COMPANY RELATION Wang Jun Citic Group Son of Vice Chairman Jiang Mianheng China Unicom Son of General Secretary CCP Zhu Yanlai Chief Executive at Bank of China Daughter of 5th Premier of PRC Li Xiaopeng Huaneng Power International Inc. Son of Chairman-Standing Commettee NPC Li Xiaolin China Power International Development Daughter Of ChairmanStanding Committee NPC Hu haifeng Nuctech Chairman of CPC Wei Yunsong Unihub Glibal Networks Son of Vice Premier of PRC
  15. 15. CRONYISM  Lucrative sectors of the economy are reserved.  2/3 of formal finance is reserved for State-owned Enterprises (SOE).  2/3 fixed assets in country is owned by 150 SOE’s  1/2 of the revenue is contributed by SOE’s.  2/3 of the Equity in publicity listed companies.  SOE’s increase their revenue by 20%-30%.  NO. of Chinese billonaries increased from 128-146
  16. 16. Cont.  80-100 million still on waiting list.  Over 90%-1000 richest people are official or members of CCP(Chinese Communist Party).
  17. 17. WHAT WORLD SAYS  About 90% of China's billionaires are the children of high-ranking government officials, says the Wall Street Journal. Almost all of China’s richest people have made their money in state-dominated sectors such as property and construction, resources, heavy industries and telecommunications.  A rarely noted fact is that 80 percent of the poverty reduction took place during the first 10 years of reform from 1979 to 1989 - before the rise of the Chinese corporate state model.
  18. 18. CONT.  Since the rise of the corporate state, China has gone from being the most equal society in all of Asia to the least by distribution of wealth. By any internationally accepted measurement, inequality in China is worse than India, America and possibly even countries such as Brazil. The net incomes of more than 400 million people have stagnated in the past decade, and absolute levels of poverty have actually increased in the same period. While SOEs have increased their revenues by 20 percent to 30 percent each year, mean household incomes have increased by a paltry 2 percent to 3 percent. - John Lee
  19. 19. CONT.  In China, the “class” system operates on several levels. At the top of the socio-economic scale are the “princelings,” children of important party officials, who have become multimillionaires by trading on their contacts. Then there are bureaucrats, who enjoy attractive lifestyles funded by the people’s taxes and sometimes bribes. Transparency International puts China joint 78th out of 178 countries in its 2010 ranking of perceived corruption. State-owned enterprises, meanwhile, benefit from monopolies or oligopolies and pay minimal dividends. The fruits of their economic activity are therefore largely enjoyed by those who run them. - Hugo Dixon
  20. 20. CONT.  Almost all of China’s richest people have made their money in state-dominated sectors such as property and construction, resources, heavy industries and telecommunications. This could be through preferential access to the best land (that has, in many cases, been illegally seized from citizens) for property developers, privileged access to belowmarket rates of capital, or through special access to the best capital or equity in listed SOEs.
  21. 21. THANK YOU

×