Export Advantages of China (Full version)

THE EXPORT ADVANTAGES OF CHINA

Data collected mainly in 2010

TABLE OF CONTENTS

I. AN

II. THE EXPORT

III. CURRENT WORLD

INTRODUCTION OF

ADVANTAGES OF

REMAINED DISADVANTAGES OF

CHINA

1. CHINA

ANINTRO

DUCTIONOF

1.1. The PoliticofChina

…IS LED BY THE COMMUNIST OF PARTY OF CHINA

FOLLOWING THE FRAMEWORK OF SINGLE – PARTY SOCIALIST OF REPUBLIC

AND…

NON – COMMUNIST

PARTIES to support CPC

8

TOCOEXIST OVER A LONG PERIOD OF TIME ENGAGE IN MUTUAL SUPERVISION SHOW UTTER DEVOTION TO EACH OTHER SHARE HONOR AND DISGRACE SHARE WEAL AND WOE

WITH CPC

China’s autonomous regions

1.2. THEECONOMY

OFCHINA

SINCE 1970s

From closed economy…

CHANGE

SINCE 1970s

FROM COLECTIVIZED AGRICULTURE…

CHANGE

SINCE 1970s

…TO ORIENTED ECONOMY

CHANGE

SINCE 1970s

…TO liberalization of prices…TO autonomy for state enterprises…TO creation of a diversified banking system…TO development of stock market…TO rapid growth of the private sector…TO opening to foreign trade and investment.

CHANGE

RURALPOVERTY

FROM 30.7% (1978) TO 1.6% (2007)

URBAN POVERTY

FROM 31.5%(1990) TO 10.4% (2005)

GDP (composition by sector) (2008 est.)

9.6

46.8

33.2

AgricultureIndustryServices

GDP (PURCHASING POWER PARITY)

2008 est. 2009

est. 2010 est

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

$10.00

GDP (purchasing power parity)

Trillion USD

(Country comparison to the world : 3)

GDP (PER CAPITA)

2008 est. 2009 est. 2010 est.5,600

5,800

6,000

6,200

6,400

6,600

6,800

7,000

7,200

7,400

GDP (per capita)

USD

(Country comparison to the world : 127)

…HOWEVER

…

…ECONOMIC DEVELOPMENT

GETS CHALLENGES

rural laborers and their dependants relocated to urban areas to find

work.

CHALLENGES

ONE-CHILD POLICY AGING COUNTRY

CHALLENGES

DETERIORATION IN THE ENVIRONMENT

CHALLENGES

Import and Export of China

CHINA EXPORT MARKET

33%

40%

14%

13% HONG KONG U.S., JAPAN,

WESTERN EUROPEDeveloping Coun-tries

Commonwealth of Independent States and Eastern Europe tr

THEDEMOGRAPHICS

OF

CHINA

URBAN AND RURAL RATIO

47%

53%

2010

UrbanRural

819.5 MILLION (2010)

LABOR FORCE

Labor force - by occupation

40%

27%

33%

AgricultureIndustryService

ONE-CHILD POLICY SINCE 1979

25% of China’s population would be age 65 or older by the year 2040

CURRENT ECONOMIC

POSITION OF CHINA

2010SECOND WORLD LARGEST ECONOMY

Ranking in GDPUnited States: $14.66 trillion USDChina: $5.88 trillion USDJapan: $5.47 trillion USD

also the largest exporter and

second largest importer of goods

in the world

2. THE EXPORT ADVANTAGES OF CHINA

BEFORE…

misallocation of resources and

wasted money since investment all came

from the government

WHY AFRICA

exploring opportunities in international markets, especially in areas rich in natural resources

WHAT WAS ACHIEVED?The trade and investment in Africa are becoming factors supporting China’s economic engine

$50BILLION IN

2015 UP TO 70% COMPARED TO 2009

the East African coast becomes important for naval strategy and the security of China

IN THE LONG TERM

openly discussed the possibility of Chinese military set up bases overseas and sea power

of thought is emerging in China's plans.

ALSO

WHAT ARE THE SHORT-COMING

China has provided Africa many loans

valued billions of dollars with little

constraint conditions

Strengthened presence in Africa contribute to Beijing’s position on the international stage.

HOW HAS THE DOMINANT POSITION IN AFRICA HELPED?

China’s strategic investment in Southeast Asia

LAOSinvestment in hydropower is considered a strategic focus

CAMBODIA Economic cooperation bilateral trade TransportMining and oil and gas explorationseabed oil and gas

EAST SEA Liu Jianchao said at the news conference in Manila that China,

Vietnam and the Philippines had a good start in the project joint seismic survey, a three-party cooperation project on the

East Coast.

In sum, the advantages of China is created mainly by its POLITICS• Single-party framework under the

CPC• Foreign investors do not consider

the autonomous regions as a trouble

• Good relationship with Hong Kong and Macau helps in export

RMB MONETARY POLICY

IN POST – 1990

Chinese monetary policy is modeled with a McCallum type rule

JULY 14, 2008

AUGUST 24, 2009

MONETARY TOOLS MARKET BASED NON – MARKET BASED

QUANTITY BASED • Issuance size of central bank bills (Phát hành tín phiếu) • Size of repurchase and reverse repurchase arrangement • Reserve requirement

• Targeted central bank bills • Special deposits from selected banks • Foreign currencies swap • Control on credit

PRICE BASED • Issuance rate of central bank bills • Rate of repurchase and reverse repurchase arrangement • Benchmark lending and deposit interest rate

• Some regulatory changes is used to change market behaviour, varying the floating band of interest rates.

3.Current world remained disadvantages

the ratio of exports to Russia and Brazil have declined

substantially. In addition, exports from China to South

Korea, Ukraine, Canada and Hong Kong also declined

The export model with the

expansive method to obtain a

large number of quantities

mainly has not changed

The technological product export field

following the concentration way

of Chinese enterprises is quite

"slow

The export of high quality products of new industry and infrastructure construction industry have not appeared the

breakthrough

Obstacles of Trade Protectionism for bringing goods into world market are increasing.

its advantage of a young labor force will

not last longer if there is no any adjustment to

the present process of reducing fertility.

How come a country with the economy standing at

the 2nd position of the world has the statistics reflecting of a low living standard of its citizens

REFERENCES