China economy

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China economy

  1. 1. Maoist Era  Start from 1949  All foreign currency were transported to Taiwan  After the formation of PRC, tight control of budget and money supply were apply.  The anti capitalist campaign applied between 1951-1952  Govt nationalized the country’s banking system and centralized currency and credit control.  Boost govt revenue by collecting agriculture taxes.
  2. 2.  Land reform, eliminating landlord.  Great Leap Forward  After few years, agricultural and industrial production returned to normal levels
  3. 3. 1978-1990  China began to reforms to its economy.  Introduce aspects of a capitalist economic system.  Emphasized raising personal income, consumption and new management system.  In the 1980s, China tried to combine central planning with market-oriented reforms  Reforms began in the agricultural, industrial, fiscal, financial, banking, price setting, and labor systems
  4. 4.  In 1978,decision was made to permit foreign direct investment in several small "special economic zones" along the coast  In the early 1980s steps were taken to expand the number of areas that could accept foreign investment  This additional effort resulted in making 14 coastal cities and three coastal regions "open areas" for foreign investment
  5. 5. 1990-2000  In the 1990s, the Chinese economy continued to grow at a rapid pace which at 10.43%  Inflation, which reached over 20 percent in 1994  China had huge reserves, a currency that was not freely convertible, and capital inflows that consisted overwhelmingly of long-term investment  China faced slowing growth and rising unemployment based on internal problems  Financial system burdened by huge amounts of bad loans  Massive layoffs affected from aggressive efforts to reform state-owned enterprises (SOEs).
  6. 6.  Despite China's impressive economic development during the past two decades, reforming the state sector and modernizing the banking system remained major barriers.  Announced plans to sell, merge, or close the vast majority of SOEs in his call for increased "non-public ownership"  In 2000, China claimed success in its three-year effort to make the majority of large SOEs profitable
  7. 7. 2000-2010  In October 2003, Chinese legislators unveiled several proposed amendments to the state constitution.  One of the most significant was a proposal to provide protection for private property rights  In October 2005, government aimed at building a "socialist harmonious society“  China's economy grew at an average rate of 10% per year during the period 1990–2004  China's GDP grew 10.0% in 2003, 10.1%, in 2004, and even faster 10.4% in 2005  China's total trade in 2010 surpassed $2.97 trillion
  8. 8.  In 2007 China recorded its fastest growth since 1994 when the GDP grew by 13.1 percent  China launched its Economic Stimulus Plan to specifically deal with the Global financial crisis of 2008–2009  Goverment also focused on increasing affordable housing, easing credit restrictions for mortgage and SMEs, lower taxes  Increase public investment into infrastructure development, such as the rail network, roads and ports  By the end of 2009 it appeared that the Chinese economy was showing signs of recovery
  9. 9. 2010-present  Government was poised to move from export dependency to development of an internal market.  Wages were rapidly rising in all areas of the country  The standards of living increase  In 2010, China's GDP was valued at $5.87 trillion, surpassed Japan's $5.47 trillion  China is the largest creditor nation in the world and owns approximately 20.8% of all foreign- owned US Treasury securities
  10. 10.  From 2011 onward, however, China has been experiencing a slowing of its growth that throws all of the above calculations into doubt  Due to the corruption and political uncertainties of the one-party state and the limited economic freedom in an economy dominated by large state owned enterprises, many skilled professionals are either leaving the country or preparing safety nets for themselves abroad
  11. 11.  Currency => Yuan or Renminbi  GDP growth => 7.8%(2012)  Inflation => 2.5% (2012)  Labour force => 795.5 million (2010)  Unemployment => 4.1% (2012)  Exports => $2.021 trillion (2012)  Imports => $1.78 trillion (2012)  Revenues => $1.838 trillion (2012)  Expenses => $2.031 trillion (2012)  Foreign reserves => $ 3.44 trillion (Q1, 2013)

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