Transcript china

CHINA
by
Chris Calagis, Eric Elliot, Jay Mathias, Mike
Maulone, and Sergei Svarovsky
Issues To Be Discussed
• Statistical data and comparisons with the
U.S.
• Most Favored Nation trade status
• Human rights
• Nuclear issue
• Intellectual property
• The future
Comparative Statistics
China
Life Expectancy
69.9
Illiteracy Rate
18.5%
Population
1.24 billion
Births/woman
1.8
People/phone
36.4
Unemployment
8-10%
U.S.
76
4%
270.4 million
2.12
1.3
4.6%
GDP by Sector
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Agriculture, forestry, and fishing - 21%
Mining, Manufacturing, and Utilities - 41%
Construction - 6.4%
Commerce - 9%
Transportation - 6%
Other - 16.8%
Imports/Exports
• Imports - $1.39 billion
– major exports: petroleum, plastics, chemicals,
steel, food
• Exports - $1.51 billion
– major imports: clothing, footwear, textiles,
toys, machinery
Imports/Exports
• Imports - $1.39 billion
– major exports: petroleum, plastics, chemicals,
steel, food
• Exports - $1.51 billion
– major imports: clothing, footwear, textiles,
toys, machinery
Trading Partners
• Imports
Japan
U.S.
S. Korea
Hong Kong
Germany
21%
11.7%
9.0%
5.7%
5.3%
• Exports
Hong Kong
20.4%
Japan
20.4%
U.S.
17.7%
S. Korea
5.0%
Germany
3.9%
Most Favored Nation
• The Trade Act of 1974 (Two
Conditions)
– “Non-Market
Economy” Countries
• Reciprocation in Reduction to Trade Barriers
– Freedom of Emigration
• No denial, serious restriction, or burden on
citizen’s rights to emigrate
Debate on MFN Status
• Every President has waived the
Jackson-Vanik requirements
• Critics pressure China on various
issues
– Human rights
– Weapons proliferation
– Regional security
– Intellectual property
Important Economic Ties
• U.S. is Largest western investor
– Fastest growing market
• China has joined many international
institutions
– World bank, non-proliferation treaty, etc.
• Trade status will increase prices for
goods and also jeopardize American
jobs
The Nuclear Arms Race
• China, India, and Pakistan
– Large increase in nuclear research
• India had a 61% rise in atomic research as of
June 1, 1998
– India and Pakistan have already performed
warhead tests
– China has plans begin testing this fall
• US, Britain, France, Russia, and 80 other
nations have condemned further testing and
development
Major Issues
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Corrupt Judicial System
Violation of Civil Rights and Liberties
Restrictions on Freedom of Religion
Discrimination Against Minorities
Violation of Human Rights in Tibet,
Xinjiang, and Inner Mongolia
Judicial System
• Political and other extrajudicial killings,
disappearances
• Torture and other cruel, inhuman, or degrading
treatment of punishment
• Arbitrary arrests, detention, or exile
• Denial of fair public trial
• Arbitrary interference with privacy, family, home,
or correspondence
Civil Rights & Liberties
• Political rights
– the right of citizens to change their government
• Freedom of expression and publication
• Freedom for peaceful assembly and
association
• Freedom of demonstration
Suppression of Religion
• Controlling organized religious activity
– registration with authorities
– annual government inspections
• Outlawing “unofficial” religions
• Harassing religious leaders
– arbitrary detainment, beatings, and
imprisonment
Abuse of Minorities
• Tibet
– Crackdown on freedom of expression, association,
assembly
– Campaign against Dalai Lama
– Issue of Panchen Lama
• Women
• Children
– orphanages
– child labor
• Disabled persons
Intellectual Property
• Eastern countries biggest piraters of patents,
trademarks, copyrights
– namely China
• China has an outrageous piracy rate of 98%
– videos, audiotapes, CDs, computer software
and other technologies
• Cost to software makers of $500 million
Copyright Laws
• First laws protecting intellectual property
weren’t even created until 1982
• Copyright law put in place in 1991
• 1994 Chinese customs given the authority
to refuse entrance of infringing items
• The laws are new and some are ambiguous
• Main problem is that laws are not enforced
Piracy
• 1993-94 - China purchased 750,000
computers and spent $1 on software for
each
• Repercussions are minimal
– fines
Cultural Influence
• Confucianism - learning by copying
• The education system of China has been
based on reproduction of older works
• “Imitation is the sincerest form of flattery”
• The basis of communism is that everything
should be shared
• Western society focuses on individual not
society as a whole
Enforcement Problems
• Many reasons for lack of effective
enforcement
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geography
legal problems
lack of resources
demand for pirated items
Solutions to Piracy
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Software Publishers Association
1995 - Bilateral IP agreement
Stricter government
Pressure from western companies
Increased sanctions
Future Plans
• China has taken the steps to be a world
power
• Internal improvements
– $700 billion on infrastructure in next ten years
• Privatizing the State-Owned Enterprises
(SOEs)
– 370,000 SOEs down to about 3,000
Economic Reform
• Some SOEs have been listed on world
markets to ready them for market system
• Opening China to foreign capital
– Foreign Direct Investment (FDI)
• $28 billion invested in over 13,000 projects
– Foreign banks and insurance companies
• permitted to enter certain test markets
– Tax breaks
China is Ready
• Changes in government
– use of scientific problem solving in government
– younger group of leaders with technology
background
• China has come a long way already
– per capita income up 550%
– people living in poverty down from 250 million
to 58 million
No Turning Back
• The leaders of this conversion have stated
that they are only looking forward
• Prevailing thought is that only through
capitalist strategies can the people’s lives be
improved
No Turning Back
• “We ran a planned economy for more than 20
years and created the foundations of
industrialization, but it was an economy of
scarcity and an economy of poverty. Ahead is a
new world. There is no way back.”
– People’s Daily