3. Introduction
The economy of China is a socialist market economy
Ranks as the second largest GDP
China has the world's fastest-growing economy, with
growth rates averaging 6% over 30 years
China also has the world's largest total banking sector
assets of $39.93 trillion.
4. cont.
China is the world's largest manufacturing economy and exporter
of goods.
free trade agreements with several nations, including Australia,
New Zealand, Pakistan, South Korea and Switzerland
China's largest trading partners are the United State, Japan, Hong
Kong, South Korea, India, Taiwan, Australia, Vietnam, Malaysia,
and Brazil
5. Economy Reforms
started in 1978 when Den Xiaoping came into power
again.
The reforms concentrated on the agricultural production
system in rural areas.
the reforms tried to attract foreign investment, boost
exports
high technology products into the country
In1980s the government selected additional coastal
regions and cities
6. Barriers in reforms
It struggled to collect revenues due from provinces, businesses, and
individuals
Reduce corruption and other economic crimes coinciding with the
reforms
Maintain daily operations of the large state-owned enterprises.
Many of the state-owned enterprises had not participated
7. Currency system
China's national currency is the Yuan
Locally, it's called the renminbi
which means "the money of the people." The renminbi is
also the official name for the currency
Yuan is a unit of the currency.
8. Regulatory environment and
government revenues
From the 1950s to the 1980s, the central
government's revenues derived from the profits
of the state enterprises,
government revenues came from taxes, of which
the most important was the general industrial and
commercial tax.
9. Inflation
In 2019, China's Consumer Price Index (CPI) rose 2.8%
In 2018, the average inflation rate in China was around
2.1 percent.
China's consumer inflation continued to rise led by cost of
food
10. Investment cycles
Chinese investment has always been highly cyclical
Ever since the 1958 Great Leap Forward, growth in fixed capital
formation has typically peaked about every five years. Recent
peaks occurred in 1978, 1984, 1988, 1993, 2003 and 2009.
A typical cycle begins with a relaxation of central government
credit and industrial policy..
Bank lending to particular types of investors will be restricted.
Credit then becomes tight and investment growth begins to
decline
11. Financial and banking
People's Bank of China and the Ministry of Finance
China Development Bank which funds economic development and directs
foreign investment;
the Agricultural Bank of China which provides for the agricultural sector;
China Construction Bank which is responsible providing capital funds for
certain industrial and construction enterprises;
Industrial and Commercial Bank of China which conducts ordinary
commercial transactions and acts as a savings bank for the public.
12. Stock markets
As of 2014 and the first quarter of 2015 the financial industry had
been providing about 1.5% of China's 7% annual growth rate
The Shanghai Stock Exchange (SSE) is a stock exchange that is
located in the city of Shanghai, China.
It is one of the two stock exchanges operating independently in the
People's Republic of China, the other being the Shenzhen Stock
Exchange.
Market cap: US$5.01 trillion (May 2019)
Since its inception in 1990, including a major reform in 2002, the
index has seen great fluctuations.
13. Sector
1-Agriculture
China is the world's largest producer of rice and is among the principal
sources of wheat, corn (maize), tobacco, soybeans, potatoes, sorghum,
peanuts, tea, millet, barley, oilseed, pork, and fish. Major non-food
crops, including cotton, other fibers, and oilseeds,
2- Housing and construction
The real estate industry is about 20% of the Chinese economy
3- Energy and mineral resources
80 percent of all power is generated from fossil fuel at thermal plants,
with about 17 percent at hydroelectric installations; only about two
percent is from nuclear energy, mainly from plants located
in Guangdong and Zhejiang
14. Cont.
4-Mining
The major areas of production in 2004 were coal (nearly 2 billion tons),
iron ore (310 million tons), crude petroleum (175 million tons), natural
gas (41 million cubic meters), antimony ore (110,000 tons), tin
concentrates (110,000 tons), nickel ore (64,000 tons), tungsten
concentrates (67,000 tons), unrefined salt (37 million tons), vanadium
(40,000 tons), and molybdenum ore (29,000 tons
5-coal
China's mineral resources include large reserves of coal and iron ore, plus
adequate to abundant supplies of nearly all other industrial minerals.
6-oil
China's onshore oil resources are mostly located in the Northeast and in
Xinjiang, Gansu, Qinghai, Sichuan, Shandong, and Henan provinces
15. 8-Metals and nonmetals
9-Industry and manufacturing
10-Steel industry
11-Automotive industry
12-Electric Car Industry
Services sector
The output of China's services ranks second worldwide the long term. In 2015 the
services sector produced 52.9% of China's annual GDP, second only to
manufacturing.
Telecommunications
Tourism
Luxury goods
Cybercrime
16. Labor and welfare
One of the hallmarks of China's socialist economy was its
promise of employment to all able and willing to work and job-
security with virtually lifelong tenure
China's estimated employed labor force in 2005 totaled 791
million persons, about 60% of the total population.
17. External trade
The principal efforts were made in Asia, especially to Indonesia,
Myanmar, Pakistan, and Sri Lanka, but large loans were also granted in
Africa (Ghana, Algeria, Tanzania) and in the Middle East (Egypt).
The vast majority of China's imports consists of industrial supplies and
capital goods, notably machinery and high-technology equipment, the
majority of which comes from the developed countries, primarily Japan
and the United States Regionally,
almost half of China's imports come from East and Southeast Asia, and
about one-fourth of China's exports go to the same destinations
18. Foreign investment
In 1998, foreign-invested enterprises produced about 40% of China's
exports, and foreign exchange reserves totaled about $145 billion.
Foreign-invested enterprises today produce about half of China's
exports (the majority of China's foreign investment come from Hong
Kong, Macau and Taiwan),
From 1993 to 2001, China was the world's second-largest recipient of
foreign direct investment after the United States.
19. Impact of CPEC on china
CPEC will connect China with Europe through Central Asia
CPEC will link China with nearly half of the population of the world.
Development of Gwadar seaport will allow China’s marine warships and
trade ships to avoid Malacca Strait and allowing Beijing to keep an eye
on American and Indian marine activities in the Indian Ocean.
China wants prompt modernization of Xinjiang and other
underdeveloped
China needs access to deep waters in the Arabian Sea through Gwadar
20. under CPEC the decrease of China’s trade way from existing sea route of
12,000 kilometers to 2,000 kilometers.
The oil consignments from Gulf nations would be transported to China
via Pakistan,
Being a neighboring country, Pakistan and China will strengthen their
trade relations.
Through land route physical distance and travel time between Pakistan
and China will fall significantly
the GDP of both economics will increase sharply.
21. conclusion
China has, so far, successfully steered its economy through the
most difficult global economic conditions since the Great
Depression of the 1930s.
China faces significant challenges in the medium term to address
growing imbalances in its economy, with growing consumer and
asset price inflation