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Chinese Economy
Chinese Economy
Chinese Economy
Chinese Economy
Chinese Economy
Chinese Economy
Chinese Economy
Chinese Economy
Chinese Economy
Chinese Economy
Chinese Economy
Chinese Economy
Chinese Economy
Chinese Economy
Chinese Economy
Chinese Economy
Chinese Economy
Chinese Economy
Chinese Economy
Chinese Economy
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Transcript

  • 1. Chinese EconomyIssues & Challenges
    Presented By:
    AmrinKaur
    AnishGarg
    Apoorva Sharma
    RachitSinghal
    Sagar Shah Chawla
  • 2. Background
    GDP per capita
    $4,283 (nominal: 95th; 2010)
    $7,518 (PPP: 93rd; 2010)
    GDP by sector
    industry (46.8%),
    services (43.6%),
    agriculture (9.6%) (2010 est.)
    Government Type: Communist State
    Population: 1.32 billion
    Currency:Renminbi(RMB); Unit: Yuan (CNY)
    GDP
    $5.88 trillion (nominal: 3rd; 2010)
    $10.09 trillion (PPP: 2nd; 2010)
    GDP growth
    10.3% (2010)
    9.7%(1st qtr of 2011)
  • 3. Major Challenges
    Economic Challenges
    Socio-Political Challenges
    Inflation
    Export based economy
    Gross capital formation
    US Treasury bills
    Banking sector
    Undervalued currency
    Demographics
    Political factors
    Inequality of wealth
    Legal system
    Imitation products
    Linguistic challenges
  • 4. Economic Challenges
    Big story: Manufacturing
    Exports constitute 39.7% of GDP
    World-wide financial crisis
    Strict product quality regulations
    Reduced private consumption expenditure trend
    Export Based Economy
  • 5. Economic Challenges
  • 6. Economic Challenges
    Undervalued Currency
    To gain a competitive advantage over other countries in export
  • 7. Economic Challenges
    Inflation
    Inflation rate in China was last reported at 6.2 percent in August of 2011
  • 8. Economic Challenges
  • 9. Click anywhere on the image to see this video
  • 10. Economic Challenges
    Banking Sector
    “Shadow” banking system
    Fudging Statistics
    Increased pressure on Government and companies
  • 11. Click anywhere on the image to see this video
  • 12. Economic Challenges
    U.S Treasury Bills
    Holds 36% of all U.S treasury bills
    Amounts to 16% of U.S public debt
    Reserves 1.8Bn USD
    Dollar loosing stability
    Purchasing assets in other countries
    South Africa: Gold Mines
    Korean assets
  • 13. Economic Challenges
  • 14. Click anywhere on the image to see this video
  • 15. Implications
    U.S Treasury Bills
    Increased Money Supply
    Inflation
    • Reduces borrowings
    • 16. Facilitates savings
    Reduces Domestic Consumption
    Increased Interest Rates
    Surplus Goods
    Unemployment
    Declining Exports
  • 17. Socio Political Challenges
    Demographics
    • Ageing population
    • 18. 15-64 years: 73.6%
    • 19. Excess labor force
  • Socio Political Challenges
    Low Wages
    High Population
    Large Labor Force
    Low Purchasing Power
    Disguised Employment
    Low Domestic Consumption
  • 20. The Silver Lining
    Ageing population
    Labor Dries Up
    Increase in wages
    Increased
    Labor Cost
    Increase Purchasing Power
    Decreased Corporate Investments
    Balanced Economy
    Increase in
    Consumption
  • 21. Socio Political Challenges
    Political factors
    Inequality of wealth
    Legal system
    Imitation products
    Linguistic challenges
  • 22. Thank You

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