Just half a century ago 36 million people died in China and outsiders heard about . ay, when China’s nouvea ches buy a few cars,the Rest of the world pays ATTENTION.
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Just half a century ago36 million peopledied in China and
Few outsiders heard about it..Today, when China’s nouveaux
riches buy a few cars,the Rest of the world pays
ATTENTION.
What caused the Chinese economy’s MELTDOWN?
What forced the Super Powerto review its economic
system?
THE CHINESE ECONOMY
Second largest economy
Market Based Economy
(Based on Demand and Supply)
Largest ExporterSecond largest
ImporterTop Destination for
FDI
IMPACT OF EUROZONE
CRISIS
1/5th of the Chinese exports go to Europe.
EUROZONE CRISIS
The value of € DEPRECIATED against the $.
Purchasing power of the European countriesdeclined.
Moreover, the value of ¥ (Yuan) APPRECIATED
23% against the €.
The Chinese goods became costly for the European countries, reducing their imports from
China.
Also, FDI from Europe to China fell 27.9%.
Chinese Premier Wen Jiabao says,
“Currently and in the future, China's employment situation will become more complex and more severe.”
The country with the world’sLargest population feels
tremors due to decline in WORKFORCE?!
In 1980, One-Child Policy
was officially introduced.
In 2010,National Population Census revealed-
People aged between 15-59(the core working age population)will decline to 29.3 million till 2020.
Chinese labour intensive economy struggles withSHRINKING supply of labour.
Labour shortage & rapid inflation of wages.
Too engrossed in meeting the World demands and no time for its own citizens.
Is this the case with
PEOPLE’s Republic of China?
INFLATION
BANKING ASSET QUALITY ISSUES
SLOW CORPORATE PROFIT GROWTH
Capacity utilisation dropped from
80% to 60% in 2011.
Government will spend $157 billion on INFRASTRUCTURE.
Tens of thousands of empty apartments without tenants already exist.
WHO HAS THE MONEY TO BUY THESE?
In 2012,foreign firms invested
$83.4 billion in factories and other projects here,down 3.8% from the year
ago.
Capital flow from 27 European
and 10 Asian countries tumbled.
When China sneezesthe World catches cold.
China is the first- or second-largest trading partner of 78 countries,
accounting for 55%of the global GDP.
CHINA
GERMANYAUSTRALIABRAZIL
INDONESIATAIWANJAPANAFRICANCOUNTRIES
THANK YOU
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