Chinese Economy: Confucianism to Neoconfucianism

Chinese Economy: Confucianism to Neoconfucianism

Das Swajan (100763)

Valeriu Arnaut (100740)

MSc. in International Business

Poznan University of Economics

Leadership Presentation: Contents

Ghost Town

Economic Sectors

GDP Comparison

GDP Determinants

Current Account Balance

Trade Balance

Imports and Exports

Population and Human Capital

Becoming a Leader

Chinese Ghost Town

65 Millions Vacant ApartmentsSource: businessinsider.com

Chinese GDP Composition by Sector

10%

46%

44%

Agriculture

Industry

Service

Source: CIA World Factbook - February 21, 2013

Chinese GDP V/s Major Economies (1)

China: GDP in Billion USD

2010 2011 2012 2013 2014 2015 2016 2017

Nominal 5,930 7,298 8,250 9,039 9,926 10,928 12,021 13,212

PPP 10,128 11,300 12,383 13,581 14,948 16,492 18,234 20,198

0

5,000

10,000

15,000

20,000

25,000

GD

P in

Bil

lio

n U

SD

Source: International Monetary Fund, World Economic Outlook Database, October 2012

Chinese GDP V/s Major Economies (2)

China: GDP Per Capita in USD

2010 2011 2012 2013 2014 2015 2016 2017

Nominal 4,423 5,417 6,094 6,644 7,262 7,957 8,710 9,528

PPP 7,553 8,387 9,146 9,983 10,936 12,008 13,213 14,566

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

GD

P P

er

Cap

ita in

US

D

Source: International Monetary Fund, World Economic Outlook Database, October 2012

Chinese GDP V/s Major Economies (3)China: GDP Growth Rate and Forecast

GDP Determinants

Y = C + I + E + G

Where: # Y = GDP

# C = Consumer Spending

# I = Investment made by industry

# E = Excess of Exports over Imports

# G = Government Spending

China: Imports

Among commodities the biggest demand is for crude oil (12 percent of total

imports), iron (5 percent), copper, aluminum and soybeans.

Main import partners: European Union, ASEAN, Japan, South Korea and

Taiwan. Others include: Australia, South Africa and Brazil.

China: Exports

Exports of goods and services constitute 30% of GDP. China major exports are:

electromechanical products (57 percent of total exports) and labor-intensive products

like clothing, textiles, footwear, furniture, plastic products, bags and toys (20 percent). In

recent years, the exports of high tech products have been also growing and in 2012

accounted for 29 percent of total exports.

Main export partners are the United States (17 percent), European Union (16

percent), ASEAN (10 percent), Japan (7 percent) and South Korea.

China: Current Account Balance

Current Account is the sum of the balance of trade (exports minus imports of

goods and services), net factor income (such as interest and dividends) and

net transfer payments (such as foreign aid).

China: Trade Balance

The balance of trade is the difference between the monetary value of

exports and imports in an economy over a certain period of time. A positive

balance of trade is known as a trade surplus and occurs when value of

exports is higher than that of imports; a negative balance of trade is known

as a trade deficit or a trade gap.

Population and Human Capital (1)

China: Population and Unemployment Rate

Population and Human Capital (2)

China: Number of Employed and Unemployed Persons

NB: Labour Force Mentioned in Thousands

Population and Human Capital (3)

China: Average Wage Comparison

Exchange Rate:1.00 USD=6.18470 CNYSource: XE.COM on 16.04.2013

Becoming a Leader :

Change in Economic Policies at 1970’s

China: World’s Largest Exporter, 2010Source: CIA

Our greatest glory is not in never falling, but in

getting up every time we do.

- Confucius