China’s Growing Role In The World Economy


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China’s Growing Role In The World Economy

  1. 1. China’s Growing Role in the World Economy <br />Reimo Meier<br />Valter Kolberg <br />
  2. 2. Economic achievements<br />Since the 1970s China’s economy has grown at an annual average of 9.4%<br />The average household saw its income increase twenty-fold over the past 25 years.<br />Since 1980s, new legislation has created new possibilities.<br />The industrial structure has changed: products have become high-tech.<br />Joining the WTO has been a further spur to economic growth.<br />
  3. 3. Economic problems<br />The increasing gap between rich and poor,as well as between urban and rural households.<br />Since 1978, China has unnecessarilybeen repeating basic construction work, while serviceindustries have made up only a small percentage of the national economy.<br />China’s fast economic growth takes on theenvironmentthrough pollution and the waste of resources.<br />Worldwide manufacturing moving to China has increased energy and resource consumption.<br />All these problems are connected: solving onemay create new problems elsewhere.<br />
  4. 4. China in the world<br />The Chinese economy, making up 12.6% of gross globalproduct, ranks third in the world. Number one, America, accounts for 21.1%, and the EU, 19.9%<br />China is now the EU’s second-largesttrading partner after the US, and the US’s third.<br />China has become a power in the world, particularlyin Asia. Chinese economic development has given newdrive to the world economy.<br />China’s trade with the rest of the world keeps growing.<br />
  5. 5. China and theEU<br />Since 1978, trade has increased 40-fold.<br />The EU is China’s largest trading partner.<br />Both China and the EU benefitfrom bilateral trade and investment.<br />China provides a new market that fuels economic development in an EU.<br />Europe has maintained its superiority in highly-skilled labour.<br />Meanwhile, China’s competitiveness inevitably threatens some EU industries.<br />
  6. 6. China’s trade with the EU<br />
  7. 7. China and the US<br />US trade deficit and unemploymentcaused by the flood of cheap Chinese products?<br />Morgan Stanley: in the past eight years cheap Chinese commodities have helpedAmerican customers save more than 600 billion USD.<br />
  8. 8. Conclusion<br />By entering the WTO, China made two promises:<br />Firstly, it will abide by international regulations.<br />Secondly, the Chinese government will gradually open its market.<br />PRC is ready and willing to play a greater role in the international community.<br />
  9. 9. Thank you for attention!<br />