Transcript University of San Diego Graphic and Visual Identity Standards

Country Study:
China
An Overview
• Until recently, a fastest-growing economy in Asia
(10%)
• After 1978, China opened its ‘iron door’ for marketoriented reforms, in 2005, 70% of GDP from private
sector
• Super performance in poverty reduction 53% of
population below poverty line during Mao era to
12% in 1981
• ‘One Child Policy’ – Population growth control
Economic Reforms
• Gradual pace
• Opened up trade with countries, Town and Village
Enterprises were established
• In late 1980’s and early 1990’s, China reduced the
number of state-owned enterprises, established a
price system
• China attracted largest percentage of FDI in Asia
(even though China is comparable to India)
Economic Profile
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GDP growth rate 9.8%
GDP per capita $6,000 (PPP)
Agriculture
43% of GDP
Industry
25%
Population below poverty line 8%
Gini coefficient 47%
Unemployment 4%
Foreign Exchange Reserves
2 trillion
External Debt
420 billion
FDI
759 billion
Development Model and Policies
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Transition to market
Outward-looking orientation
Foreign capital plays an important role
Effective government policies – industry, agriculture,
trade, population
• Undervalued currency and trade surplus as engine
for growth
• Improvements in human resources – skills and health
indicators
International Relations
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Entry into WTO
Human rights
Pressure to reduce Yuan
Tensions with U.S. due to high deficit of U.S. with
China
• Courting Europe
• Intellectual Property Protection
Bottlenecks
• Even with a gradual pace of reforms, China faces
many bottlenecks; oil imports, high oil prices, ever
increasing demand for energy & shortage of critical
inputs – cement, fertilizers, electricity, Steel, power
‘blackouts’, labor costs rising
• Healthcare and Housing
Barefoot doctors – 2 doctors per 1,000 people in
village
Out-patient clinics – 10,000 to 30,000 per clinic
Hospital – 200,000 to 600,000 people per hospital
Inequalities
• 4% of Chinese families own 70% of total wealth
• Rural urban and coastal vs inland disparities
• In 2003, China surpassed Zimbabwe in unequal
distribution of income
• Compared to India, a better record because of
socialist government
Trade Policies and Problems
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Shrimp – ‘dumping’ issues taken to WTO
MFN status
Adversely affected by the end of textile quotas
Signing regional trade agreement
Eliminated most of the agricultural taxes
Global recession affecting exports
Outlook
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High growth rate continues
Stock market performing well
Unequal distribution of income is a pressing problem
A sound rural-urban balance policy in place
Human rights and labor conditions still an issue
Aggressive trade policy