The document presents an overview of China's role in the global economy, including its GDP, trade dynamics, and the impact of historical events like the Tiananmen Square incident on US-China relations. Key statistics highlight China's position as the world's largest exporter, second-largest economy, and a significant player in global oil imports and foreign exchange reserves. Furthermore, it discusses wage growth and its implications for economic conditions within China.

1. MBA 602 – Global Economic Environment
Presented by: William Allen
July 2013 University of Fredericton
China’s Role
in the
Global Economy

2. Overview
 Background
 GDP
 Trade
 Bad Publicity
 Wages & Financial
 Economic Growth

3. Economic Timeline

5. Share of Global Exports
0
2
4
6
8
10
12
 % of Global exports
 Since joining WTO

6. China’s Trade
 Total Trade $ billions
 Since joining WTO
0
500
1000
1500
2000
2500
Exports
Imports

7. Major Trading ($ billions)
0
100
200
300
400
500
600
EU USA Asean Hong
Kong
Japan South
Korea
Taiwan
Imports
Exports
 2012
 Exports >$2,000
 Imports >$1,800
 Total trade with major
partners >$3,800

8. Tiananmen Square
 Affect on US-China relations
 Political and economic
Sanctions
 Some sanctions still in
effect 10 years later
0
2
4
6
8
10
12
14
16
% GDP growth 1980 to 1998

9. Tainted food
Melamine
• Dog Food
• Baby formula
Formaldehyde
• Blood Pudding

11. Monthly Wages
 2012 20% increase in
minimum wage
 Mexico $1,300
0
50
100
150
200
250
300
350
400
450
Beijing Shanghai Gansu Tibet Hubei Argentina Vietnam
Monthly Wages in US $

12. Annual Wages
 270% increase
 Impact on cost of goods?

13. Energy
 Second largest oil
importer 2012:
• 5.7 million BPD
• US: 9.8 million BPD
 By 2035:
• 13 million BPD

14. Financial
 Foreign exchange reserves
• $3.44 Trillion (2013)
• 65% US
• 26% euros
• 5% pounds
• 3% in yen.
 US Debt
• $1.3 trillion US

15. China’s Economic Growth
 Capital
 Worlds largest manufacturing
 Increased wages
 Increased productivity

16. Recap
 Continued economic growth
 Second largest economy
 Largest exporter
 Largest importer
 Largest manufacturer
 Largest foreign exchange reserves

17. References
Americancentury, (2012, July), Chart of the Week: Wage Inflation in China: Implications for
Inflation and Global Investing. Retrieved from http://americancenturyblog.com
/2012/07/chart-of-the-week-wage-inflation-in-china-implications-for-inflation
-and-global-investing//
Carbaugh, R., (2013), International economics 14th edition, Wages increases and Chinese
trade, pg 70
Chan, J., (2009, June), Origins and consequences of the 1989 Tiananmen Square massacre –
part 3, retrieved from http://www.wsws.org/en/articles/2009/06/tien-j06.html
DeNavas-Walt, C., Proctor, B., Smith, J., (2012, September), Income, Poverty, and Health
Insurance Coverage in the United States: 2011, retrieved from
http://www.census.gov/prod/2012pubs/p60-243.pdf

18. References
Harding, H., (n.d), The Impact of Tiananmen on China's Foreign Policy, The National Bureau of
Asian research, http://www.nbr.org/publications/element.aspx?id=73
Labour department, (n.d), The government of Hong Kong Special Administrative region,
Retrievedfrom http://www.labour.gov.hk/eng/news/mwo.htm
Morrison, w., (2013, July), China’s Economic Rise: History, Trends, Challenges, and
Implications for the United States, Retrieved from http://www.fas .org/sgp/crs
/row/RL33534.pdf
RT.com, (2013, July), China's US Treasury Holdings hit record $1.3 trillion, retrieved from
http://rt.com/business/china-federal-debt-record-207/

19. References
The Conference Board, (2013, May), Global Economic Outlook 2013, retrieved from
http://www.conference-board.org/data/globaloutlook.cfm
The Economist, (2012, March 10), The end of cheap China. Retrieved from http://
www.economist.com/node/21549956
US v. China, (n.d), 1989: Tiananmen Square Massacre, Human Rights, Case Studies in
Sanctions and Terrorism, The Peterson Institute for International Economics,
retrieved from http://www.piie.com/research/topics/sanctions/china.cfm
Wageindicator.org (n.d), China Minimum Wages w.e.f July 1, 2013, retrieved from http://www
.wageindicator.org/main/salary/minimum-wage/china-custom
Yueh, L., ( 2013, May), bbc.co.uk, China's ambitious plans for its huge reserves, retrieved from
http://www.bbc.co.uk/news/business-22567974

20. QUESTIONS?