The Chinese Economy
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The Chinese Economy



A presentation on the economy of China and its growth through the decades.

A presentation on the economy of China and its growth through the decades.



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The Chinese Economy The Chinese Economy Presentation Transcript

  • From Communism To ‘Social’ Capitalism
  • China: An Introduction
    • Chinese Civil War ended in 1949
    • Communist Party of China came to power
    • Started out on a socialist path
    • Complete government control on market
    • Adopted ‘Market socialism’ in 1977
  • The Economy of China
    • GDP : $4.33 trillion
    • Industrial Contribution: 48%
    • Focus on government control of markets and firms till 1977
    • Political ideology shaped economic discourse
    View slide
  • Chinese Economy: 1949 - 1980
    • Big Push Strategy: Socialist Heavy Industry
    • Abolition of private ownership
    • Government controlled land and labor
    • Technologically sophisticated, large-scale, capital-intensive plants were setup
    View slide
  • Chinese Economy: 1980 - 1990
    • New perspective: Economic policy separated from ideology
    • Focus on raising personal income and consumption
    • Private ownership, enterprises encouraged (SEZ)
    • Move towards are a market economy with government controlling heavy industries
  • Chinese Economy: 1990 - 2000
    • Move towards a ‘Socialist Market Economy’
    • Government followed “Grasping the large, letting the small go” philosophy
    • Self-sufficiency in food, double real income per capita,
    • Boom in private sector, encouragement of competition even with state owned enterprises
  • Chinese Economy: 2000 - Now
    • Focus on more balanced wealth distribution and improved education, medical care, and social security
    • Over 10% growth in GDP in 2003, 2004 and 2005
    • Rising inequality of income – 35% live under $2/day
    • Future problems: ageing population, acute environmental damage due to industries
  • Chinese Economy: Govt. Role
    • Government planned and managed the economy since 1949
    • Top-down flow of command – 100+ ministries for economic activities
    • Gradual reduction in government role since 1978 reforms
    • FDI has increased, SMEs dominated by private sector
  • Chinese Economy: Problems
    • Systematic problems: corruption, environment issues, underemployment, unemployment
    • Steady increase in inflation rates on an year-on-year basis
    • Shortage of gasoline and diesel fuel
    • Food shortages following February 2008 storms
  • Thank You The Chinese Economy