International Economics : China

Résumé du document

The table of contents : 'The general situation in china',' China's economic reform', and 'The "open door" policy'. China has been able to feed its people inspite of having 22 percent of the world's population, and with less than 10 percent of the world's cultivated land. For over 2 decades, China's economy has demonstrated vigour and vitality with an annual average growth rate of 9.7%. China has become one of the countries that is experiencing the highest economic growth rate in the world. By the year 2000, China's GDP reached more than 8.94 trillion yuan, exceeding US $1 trillion for the first time. In accordance with the rankings arranged by the World Bank, China's economic status in 2001 was placed sixth behind the United States, Japan, Germany, France and Great Britain.

Extraits

[...] establishment of foreign investment companies has introduced and popularised the concepts of market economy, new organizational and operational styles in the companies, market competition mechanisms and effective administration systems.” FDI in China by origin (U.S.$ millions) Country/region Rank 92-98 total inflows % Hong Kong Taiwan Japan United States European Union Singapore South Korea FDI Sector distribution in China in 1990 ( FDI from developed countries) Sector Number Percent Energy & transportation Medical Agriculture and food Electronics & heavy industry Printing Building materials Textiles & light industry Property development Services Chemicals Miscellaneous How to attract more FDI Political stability Firm social networks Higher economic growth Large market size Stable exchange rate Low labor cost The incentive policy Investment in its infrastructure Domestic investment Government foreign currency reserves years' efforts to integrate China into international community In july1986: China initiated the process Beginning in February 1988: the working party began to meet frequently At the seventh meeting in April 1989: at the eighth meeting of the working party, which was scheduled for mid-July 1989, China would have its membership. In early July 1989: mass killings” in Tiananmen Square. The scheduled July 1989 meeting of the working party was cancelled. In 1991: the breakup of the Soviet Union and the collapse of the Council for Mutual Economic Assistance. [...]

[...] Kodak has captured half the market for film and photographic paper. Carrefour has become China's second largest retailer only five years after entering the market. Exports of Foreign-Funded Enterprises 1985-2000 Billions of U.S.dollars year Total Foreign- percent Export funded company exports Imports of Foreign-Funded Companies 1985-2000 Billions of U.S.dollars Total Foreign- percent Import funded company import The role of FDI for China's economic development: - to ease the shortage of capital to promote the development of key industries to fuel the foreign trade to influence the Chinese people's mentalities and to modify their frames of reference. [...]

[...] How this process started and where it now stands reflect how reform in China moves forward.” transition from Jiang's so-called third generation” of leaders to Hu's “fourth generation” was never going to be easy.” Highest economic growth rate in the world GDP(100 million 1978: 3624.1 1989: 16909.2 1997: 74462.6 2001: 95933.3 GDP Per capital (yuan) 1978: 397 1989: 1512 1997: 6054 2001: 7543 over 2 decades, China's economy has demonstrated vigour and vitality with an annual average growth rate of China has become one of the countries that enjoy the highest economic growth rate in the world.” By the year 2000, China's GDP reached more than 8.94 trillion yuan, Exceeding US$1 trillion for the first time, a 5 fold increase at the end of the 1970s. In accordance with the rankings arranged by the World Bank, China's economic aggregate in 2001 was placed sixth behind the United States, Japan, Germany, France and Britain. “First output” in the world Agricultural products: food-grain, meat, cotton, fruit, edible oil and egg. Industry products: steel, coal, cement, chemical fertilizers, household electrical appliances and program-controlled switchboards. [...]

[...] four basic features: "clear property rights, clear rights and responsibilities, separation of government from companies, and scientific administration". Foreign investment and China's SOEs China will actively attract foreign investment in reorganizing and transforming SOEs Means: Cross-border mergers and acquisitions, Industrial investment funds, Venture capital, Equity joint venture, Franchised operation Price reform “Evidently, many problems could be alleviated with price reform. Because prices are rigid and do not reflect cost or demand.” “there were up to one million prices. Cost calculation for each and every product was extremely complicated.” single price control agency, no matter how competent, could hope to handle this complicated problem well through subjective plans.” the only way to do so is to allow the market a much greater role in price determination Three-tiered price system (late 1984 ) Fixed prices for the most important goods Guiding prices (upper and lower limits to price fluctuations ) for an intermediate range, Freely floating prices for a host of consumer and small producer goods Double rail (1985) In percent of prices had become unregulated. [...]

[...] The points of reform freeing up agriculture, loosening central control on government regional companies, opening foreign investment, encouraging private domestic business New phrases and terms : individual economy”, market”, “competition”, the rule of and company autonomy” “some people must become rich before others can improve their well-being” “orthodox Marxist theory was outdated and could not solve the problems faced by modern China”. Signs of change: the proliferation of private companies and markets, the reappearance of advertising on the streets and in the media, the phenomenon of a sudden rise in incomes and prices, the growing gaps between people's personal income the arrival of luxury consumer goods, such as colour television sets the emergence of wealthy peasants who owned tractors, farm machines and consumer durables, and the spread of corruption, What we can learn from China's economic reforms Marxist-Leninist ideology does not refuse some capitalism Economic reform first, political reform later To promote private company image while allowing big state owned companies to remain untouched The major sources of economic vigour: companies and individuals The reforms require patience and will power Percentage of gross value of output SOE Urban collective TVE Coop Private Other, including JV Household responsibility systems (HRSs) Baochan daozu - Contracting output to the group: Baochan daohu- Contracting output to the household Baogan daohu- Contracting everything to the household The reform of the SOEs The stages of reform of the SOEs 1979-1982: the system of economic responsibilities 1983-1986: replacing profits by taxes. [...]