The document discusses China's economic development and modernization over recent decades. It notes that China has seen rapid GDP growth and has risen to become the world's second largest economy. It attributes this success to China having clear goals and plans laid out in its Five Year Plans, focusing on urbanization, technology advancement, increasing human capital, and other factors. The document also examines China's growing role in global trade and foreign investment.

2. Contribution of world output
0
5
10
15
20
25
30
35
40
1800 1860 1911 1978 2002 2020
U.S
U.K
Germany
China

3. James McGregor on China’s Five Year Plan
• James McGregor (A former
chairman of the American
Chamber of Commerce in China):
– "One key thing we can learn from
China is setting goals, making
plans and focusing on moving
the country ahead as a nation"
– China has a plan and is executing
on it while US politicians resemble
eunuchs in a dying dynasty
arguing over spoils in a crumbling
palace.

4. 1. Urbanization and labor transfer. 4. Technological advancement
2. Foreign technology spillover effect. 5. The process of marketization
3. Increased human capital. 6. Others
Year
GDP
growth
rate
Utilized capital stock Labor TFP
Growth
rate
Contrib
ution
rate
Contrib
ution
rate
Growth
rate
Contrib
ution
rate
Contrib
ution
rate
Growth
rate
Contrib
ution
rate
Contrib
ution
rate
1979-1985 10.2 8.9 52.4 5.3 3.3 12.9 1.3 3.5 34.7 3.5
1986-1995 10.0 9.5 57.0 5.7 3.2 12.8 1.3 3.0 30.2 3.0
1996-2000 8.6 10.2 71.2 6.1 2.2 10.2 0.9 1.6 18.6 1.6
2001-2005 9.8 8.6 52.7 5.2 0.7 2.9 0.3 4.4 44.5 4.4
2006-2010 11.2 12.1 64.8 7.3 0.4 1.4 0.2 3.8 33.8 3.8
2011-2015 7.8 9.3 70.0 5.6 0.4 1.9 0.2 2.0 25.3 2.0
1979-2015 9.7 10.0 61.3 6.1 1.8 7.2 0.7 3.0 30.6 3.0

5. Export upgrading

6. China’s economic structure in 2018
Agriculture Industry Service
Volume 7.1%
(50.5% in 1952)
40.7% 52.2%
Employment 26.1%
(83.5 in 1952)
27.6% 46.3%

7. Evolution of Doing Business score

8. China’s inward FDI (US$ billion)

9. Major joint auto-assembly ventures in China

10. The ancient land Silk Road and maritime Silk
Road

11. China's modernization drive
GDP growth rate of China, the world and different types of economies
page 11
China's growth rate is much higher than that of high-income countries, as well as
middle-income and low-income countries
数据来源： World Bank Database

12. 2. China's modernization drive
• Ranking of China's GDP in the world
• 1980 12（after US, Japan, Germany, France, UK, Italy, Canada, Brazil, Spain,
Mexico, India）
• 1990 10（after US, Japan, Germany, UK, France, Italy, Canada, Brazil）
• 2000 6（after US, Japan, Germany, UK, France, ahead of Italy, Canada,
Brazil）
• 2001 6
• 2002 6
• 2003 6
• 2004 6
• 2005 5（after US, Japan, Germany, UK, ahead of France）
• 2006 4（after US, Japan, Germany, ahead of UK）
• 2007 3（after US, Japan, ahead of Germany）
• 2008 3
• 2009 3
• 2010 2（after US, ahead of Japan）
• 2011 2
• 2012 2
12

13. Latin America: Economic Growth (%)
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013

14. New normal: the growth of the industrial sector slows down
page 14
8.5
8.88.88.78.8
9.2
9.0
6.9
8.0
7.7
7.2
7.9
8.6
5.2
5.6
5.9
6.1
6.8
6.06.1
5.75.6
6.2
5.95.9
4.9
6.8
6.06.0
6.2
6.0
6.3
6.106.106.20
4
5
6
7
8
9
10
2014.01
2014.02
2014.03
2014.04
2014.05
2014.06
2014.07
2014.08
2014.09
2014.10
2014.11
2014.12
2015.01
2015.02
2015.03
2015.04
2015.05
2015.06
2015.07
2015.08
2015.09
2015.10
2015.11
2015.12
2016.01
2016.02
2016.03
2016.04
2016.05
2016.06
2016.07
2016.08
2016.09
2016.10
2016.11
Month-on-month growth rate of China's above-size industries(%)

15. Rule of law of selected Latin American
countries

16. Peru: State institutional quality

17. Participation in Peruvian election campaigns
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1978 (c
)
1980
(p)
1980
(m)
1983
(m)
1985
(p)
1986
(m)
1989
(m)
1990
(p)
1992 (c
)
1993
(m)
1995
(p)
1995
(m)
1998
(m)
2000
(p)
2001
(p)
political parties independent candidates

18. Comparative GDP per capita

19. New normal:
shrinking population dividend
With the Lewis Turning-Point approaching, China's population dividend is
shrinking and the labor cost is increasing. Aging population will reduce the
saving rate, and the soaring investment cannot sustain. This will all reduce
China's previous economic engines.
page 19
0
20000
40000
60000
80000
100000
120000
1982
1987
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
0-14岁人口数(万人) 15-64岁人口数(万人) 65岁及以上人口数(万人)

21. The Trend of Major countries’ R&D Intensity
Innovation: continuous improvement of innovation ability. In 2012, the strength of R&D in China was
1.98%. Although China still lags behind the United States, Japan, Germany and other traditional
manufacturing powers, but already surpasses Britain, Italy and other developed countries, as well as 28 EU’s
countries with an average level of 1.97%. China R&D expenses reached 1.29.84 trillion yuan, ranking the
third in the world, and accounting for 11.7% of the global share, up from 1.7% in 2000. R&D output and
innovation capability have improved rapidly, a large number of major technical and equipment
breakthroughs have been achieved, and the level of localization has been continuously improved.
China’s R&D Intensity (1996-2011)
Innovation-driven Development to Achieve
Momentum Shift

22. To accelerate the urbanization rate of household registered
population
Since the reform and opening up, the process of urbanization has been accelerated and has become
an important factor affecting China's economic development. China's urbanization process shows
that the urbanization rate has risen from 17.92% in 1978 to 54.77% in 2014. Especially since 1996,
China's urbanization process has been speeded up with an annual increase rate of more than 1
percentage point. China's current urban population has exceeded its rural population.
22

23. To win the battle against poverty
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Rural poverty situation based on the current standards
Year Impoverishment Rate(%) poverty population（10,000)
1978 97.5 77039
1980 96.2 76542
1985 78.3 66101
1990 73.5 65849
1995 60.5 55463
2000 49.8 46224
2005 30.2 28662
2010 17.2 16567
2014 7.2 7017
2015 5.7 5575
2016 4.5 4335
Getting rid of poverty means that people can live a relatively stable and wealthy life. "Guidelines on
China's Poverty Reduction and Development in Rural Areas (2011-2020)" states that "by 2020,
people under the poverty alleviation plan will meet basic needs of food and clothing and have access
to compulsory education, basic medical care and housing”. Based on this goal, China has developed
the current rural poverty standard, namely, "2,300 yuan per person based on the price level of
2010". As the basic housing is guaranteed, China's current rural poverty standards allow the food
consumption for a healthy life and the non-food consumption which is equally important for living. In
other words, a rural resident whose per capita consumption expenditure meets the poverty
standards is able to buy 1kg of rice and noodles, 1kg of vegetables, 50g of eggs and meat a day,
which can provide 2,100 kcal and about 60 grams of protein, basic needs of healthy living; and he is
also able to pay for basic clothing, supplies, utilities, transportation, education and medical care.

24. Pillar 3: Revigorating Rural Area
Poverty Alleviation
The concept of
Accurately-targeted
Poverty alleviation

25. To accelerate the urbanization rate of household registered
population
• Oficina de Seguridad Nacional.
• Fortalecimiento del Imperio de la Ley.
• Mejorar la disciplina dentro del PCC.
• Gato verde.
25