A succession of dynasties ruled China from the second millennium BC to the early 1900s. Chinese history changed course, however, as Europeans expanded into Asia. China suffered through clashes with European powers in the 1800s. Then, in 1911, Chinese revolutionaries overthrew the last dynasty. The country suffered internal strife for nearly four decades due to warlords, civil war and Japanese invasion. In 1949, the Chinese Communist party won the civil war and established China's current government.  The Communists implemented many social and political changes, starting in the 1950s with the transition to a planned economy. Leader Mao Zedong launched a "Cultural Revolution," in which young loyalists attacked intellectuals and party leaders.  In the late 1970s, the Chinese government introduced economic reforms, introducing elements of a free-market economy. The government also encouraged foreign investment. That laid the groundwork for the modern China we see today.

1. China’s Economy Rises

2. Introduction to China’s Economy

3. HISTORY
 A succession of dynasties ruled China from the second millennium BC to the early
1900s. Chinese history changed course, however, as Europeans expanded into Asia.
 China suffered through clashes with European powers in the 1800s. Then, in 1911,
Chinese revolutionaries overthrew the last dynasty. The country suffered internal
strife for nearly four decades due to warlords, civil war and Japanese invasion. In
1949, the Chinese Communist party won the civil war and established China's current
government.
 The Communists implemented many social and political changes, starting in the
1950s with the transition to a planned economy. Leader Mao Zedong launched a
"Cultural Revolution," in which young loyalists attacked intellectuals and party
leaders.
 In the late 1970s, the Chinese government introduced economic reforms,
introducing elements of a free-market economy. The government also encouraged
foreign investment. That laid the groundwork for the modern China we see today.

4. China’s Economic Rise

5. GDP – real growth rate:
9.8% (2008) country comparison to the world:
13% (2007)
11.6% (2006)
GDP-Per capita (PPP-Purchasing power parity):
$6,000 (2008)country comparison to the world:
$5,500 (2007)
$4,900 (2006)
note: data are in 2008 US dollars
GDP – composition by sector:
agriculture: 10.6%
industry: 49.2%
services: 40.2% (2008)
China – Economic Fact SheetChina – Economic Fact Sheet

6. International Comparison: Real GDP Growth
China’s Economic Rise

7. DEVELOPMENT IN AGRIGULTURE
Agriculture is vital industry employing over 300
million farmers.
China ranks first worldwide in farm outputs
primarily producing-
 Rice
 Wheat
 Potatoes
 Sorghum
 Peanuts
 Tea
 Millet
 Barley Cotton
 Oilseed
 Pork
 Fish

8. DEVELOPMENT IN AGRICULTURE
 Leading producer of cotton.
 China accounts for about one-third of the total fish
production of the world.
 China is both the world's largest producer and
consumer of agricultural products
 Yields are high because of intensive cultivation,
 China is the world's leading producer of pigs,
chickens, and eggs, and it also has sizable herds of
sheep and cattle.
 China has a long tradition of ocean and freshwater
fishing and of aquaculture
 . Pond raising has always been important and has
been increasingly emphasized to supplement coastal
and inland fisheries threatened by overfishing and to
provide such valuable export commodities as
prawns.

9. Production of wheat from 1961 to 2004

10. SERVICE SECTOR
 In 2010 the services sector produced 43% of
China's annual GDP .
 The official non manufacturing index, based
on a survey of about 1,200 companies in 27
industries including telecommunications,
transportation, and construction, slipped to
55.6 from 56.7 in July
 Tourism industry contributes more than 70%
of total tourism revenue

12. MAJOR INDUSTRIES OF CHINA
 Electronic information
 Biotechnology
 Automobile
 Modern medicine
 New materials
 Environmental energy
 Marketing
 Steel industry
 Fertilizers and Cement

13. EXTERNAL TRADE

16. CHINA’S INVESTMENT
ENVIRONMENT
 Foreign Economic policies
 Attracting Foreign Investment
 Financial Institutions
 Foreign Exchange Control
 Security Markets
 Insurance Market

18. TECHNOLOGY
 China’s technology and IT sector expanded
in first 8 months
 But companies faced higher costs and slower
income
 Output of manufacturers in the sector rose
to15.5% and sales value increased 22.3%
 In july the sectors revenue grew 18.3%

19. Does China Follow the East Asian Model?
Of course, there is nothing surprising about China’s economic
model: We have seen it before in Japan, South Korea, and
Taiwan
Yet, while the other East Asian economies
have been gradually dismantling their
developmental state apparatuses, China
seems to be in the process of solidifying
the elements of its developmental state
Enter the Dragon?
China’s Economic Rise

20. Does China Follow the East Asian Model?
Of course, there is nothing surprising about China’s economic
model: We have seen it before in Japan, South Korea, and
Taiwan
Yet, while the other East Asian economies
have been gradually dismantling their
developmental state apparatuses, China
seems to be in the process of solidifying
the elements of its developmental state
Enter the Dragon?
China’s Economic Rise

21. Elements of the East Asian Model in China
The Chinese state has purposefully created a dual economic
structure: one part is based on an ever-expanding private sector, while
the other part is based on still prominent state-owned enterprises, or
SOEs
The private sector is relatively free of state control, but still depends on
state policies
The state sector, while declining in overall influence, still plays “a major
part in heavy industry and makes up a high percentage of gross
domestic fixed capital formation, gross output value and the number of
employees”
Enter the Dragon?
China’s Economic Rise

22. Elements of the East Asian Model in China
Conclusion
China is clearly not following the Anglo-Saxon “model” of full
economic liberalization; indeed, the evidence strongly indicates that
China is another developmental state
The timing of China’s capitalist development, however, is very
different from that of the other East Asian “miracles”: This very likely
means that China’s developmental trajectory will differ, perhaps in
dramatic ways
Enter the Dragon?
China’s Economic Rise

23. Comparing India and China’s Growth StoriesComparing India and China’s Growth Stories
Indicators India China
Political System Multi-party Democracy One-party authoritarian
rule
Speed of Growth Economic reforms
started in 1991. Average
6% growth rate in past
two decades.
Economic reforms
started in 1978. Average
9.5% growth rate in past
two decades.
Areas of Specialization Rising power in software,
design, services, and
precision industry.
Dominant in mass
manufacturing,
electronics and heavy
industrial plants

24. Comparing India and China’s Growth StoriesComparing India and China’s Growth Stories
Indicators India China
Gini index (standard
measure of inequality) 36.8
47.0 (up 10 points from
15 yrs ago)
Foreign Direct
Investment
6.8% (up from 0.3% in
2004)
17.8%
Future Areas of
growth
R&D, bio-technology,
high-value IT enabled
services (legal, medical,
engineering architecture),
manufacturing, agro-
based industry
IT business, services and
continued manufacturing

25. “GDP Growth 2000 to 2050”“GDP Growth 2000 to 2050”
Source: Goldmann Sachs: The Path to 2050
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
[2003 bn US Dollars]
Germany
Brazil
Japan
Russia
-8-

26. CHINA’S FUTURE

27. CHINA V/S US

28. TOPICS INCLUDED
 GDP
 TECHNOLOGY
 EXPORTS
 POPULATION
 TRADE DEFECIT
 ATOMIC AND NUCLEAR ENERGY