Transcript China
Emerging China Geography Urumqi Beijing Xian Lhasa Shanghai Kunming Guangzhou 9,573,000 square km Population population: 1,360,500,000 density: 365per square mile Religion Secular 60% Chinese 31% Christian 4% Animist 2.5% Muslim 2.5% History Ancient civilisation 221-206BC: Unification of China 1800s: Western imperialism 1911: Republic founded 1949-1976: Chairman Mao 1966-1976: Cultural Revolution 1997: Deng Xiaoping dies 1997: Hong Kong returned to China 1999: Macau returned to China Economic Stats • 1.36 billion – population. • 1/6 of the world’s population. • 791 million workers • Enormous source of labor, affordable labor (1/20 of wages paid in western world). • Cost-effective production of goods and services. • Enormous consumer market with even more enormous potential. Economic Stats • $8.23 trillion – Size of Economy (GDP). • Second (2nd) largest economy in the world (US-1st , Japan-3rd & Germany-4th). • Enormous purchasing power. • Amazingly, hardly a reflection of China’s economic potential. • Debatably, will be the largest economy by 2030. • Enormous production capacity. • $2.021 billion – exports. Economic Stats • 7.8% - growth of economy. • One of faster growth rates in the world. • Levels sustained for more than a decade. • Gov’t has tried to cool off the economy. • Levels projected to 2015. • Fueled by enormous Inward Foreign Direct Investment (FDI), close to $200 billion. • Spells enormous economic opportunity and potential for prosperity in China where domestic savings deposits now over $1 trillion. Economic Stats • $9,162 – per capita income. • Low by developed world standards but much elevated from a 20 years ago ($370). • Imagine what China’s economy will be when per capita income reaches $40,000 (that of US). • Enormous consumer market potential. • $1.78 trillion – imports. China in Transition • Following centuries of impressive developments as a major civilization in the world, China experience significant social, economic and political decline in the 18th and 19th centuries. China in Transition • Today China is re-emerging as a major player on the world’s economic scene due to a more liberal, open-market economic policy embraced in the late 1970’s. • Many predictions suggest that if present developments continue, China will be “the” economic power in the world within twenty years. China Discovered • More than 400 out of Fortune 500 companies invested in over 2,000 projects in China. • GM, Intel, IBM, Walmart, Microsoft, Perry Ellis, Boeing, etc., etc., etc. China’s Problems • 18 percent of world’s poor • 150 million Chinese live on less than $1 per day • Only 80 million Chinese are considered ”middle class” by U.S. standards