The Chinese economy at the beginning of the 21st century

Résumé du document

An unique party into a socialist republic. The communist party of China is the ruling party also know as the CCP Chinese communist party of China. Progressively the CCP has tried to reform the economy from a centrally planned economy to a market oriented economy. China is still in the 21st century to shift from a planned economy to a mixed economy. The Chinese economy is growing rapidly 8% to 9%. Nevertheless growth carries risks. The biggest risk is overheating either through consumer price inflation, or an asset price bubble. Is China in the 21st century on the verge of economy overheating? In 2004 inflation started to pick up, why? The level of inflation in China is now 6.2%, big enough to cause concern and curtail future growth. The price of oil jumped on the international market from $65 to $100. Given the high degree of dependency from China it has generated inflation. Price of agricultural commodities have also surged Undue growth in the money supply. Chinese citizens not allowed to hold foreign currency.

Extraits

[...] The level of inflation in China is now big enough to cause concern and curtail future growth. The price of oil jumped on the international market from $65 to $100. Given the high degree of dependency from China it has generated inflation. Price of agricultural commodities have also surged Undue growth in the money supply. Chinese citizens not allowed to hold foreign currency. Content.IE5\RWRWQPJQ\China+Inflation+July[1].jpg Financial and banking system Which solutions? Raising interest rates Raising reserve requirements, issuing government bonds, and easing restrictions on investing abroad. [...]

[...] Nigeria and Angola are the main producers and China has become active in both countries. China has more recently become a player in the energy field on the west coast of Africa, which is the largest producer of oil on the continent. Angola represents how China puts its assets together to build its presence. In connection with its bid to win rights to exploration of a bloc, China offered Angola a billion soft loan as part of a longer term aid package. [...]

[...] Energy demand up15% annually. China is now facing an energy crisis and environmental protection is now part of the economy plan of China. China has set up price policy for various elements such as oil and water and coal. Oil3 Agriculture, Industry and Services China is moving up market. Chinese companies are becoming more skilled and are able to produce high tech products and services. Nevertheless China is still very present in low skilled produced such as textile and other industry. [...]

[...] http://www.chinashoesexpo.com/images/ChinaMap_large.jpg The Chinese Economy at the beginning of the 21st Century PLAN A Global Giant China-GDP-growth China's GDP, 1990-2006 (current value, billions of U.S. dollars) 10HighestGDP The ten biggest GDP in 2006 During the last decade, China took advantage from its economic opening, China's GDP skyrocketed and reached the fourth rank in 2006. This growth deeply modify world economy and consequently international relationships. < number > A Global Giant Population estimation in 2007: 1,32 Md inhabitants GDP GDP nominal 2007: $ 3.42 trillion (4th) GDP per Capita 2007: $2,800 (101st) Finance Capitalization of Chinese stock market ahead of Japan's Largest foreign exchange reserves in the world since 2006: $ 1,530,000 in December 2007 Oil Market Petro China has passed ExxonMobil as the world's largest company by market value. [...]

[...] European Union and the United States overtook Japan in 2004 as China's top trading partners. Trade with Japan grew by only 9.9 per cent in 2005, much slower than China-EU and China-US trade. In terms of contributions to global trade, China's share thus far has been less than Japan's, at comparable stages after takeoff (Chart 8). China's share is now almost 7 per cent, and is rising so rapidly that it is likely to soon surpass Japan's peak share of world trade during its rapid development. [...]