...China's `New Normal' Growth Model Is Starting to Get Expensive Enda Curran September 10, 2015 — 12:01 PM EDT Share on FacebookShare on Twitter People walk past buildings in the central business district in Beijing on Sept. 9, 2015. Photographer: Greg Baker/AFP/Getty Images) Don't Miss Out — Follow Bloomberg On * ------------------------------------------------- Facebook * ------------------------------------------------- Twitter * ------------------------------------------------- Instagram * ------------------------------------------------- YouTube ------------------------------------------------- Recommended Fed Liftoff Has Futures and Economists at Odds for Next Week The U.S. Economy Is Just Starting to Tap Into a Big Source of Dry Powder One Chart That Shows How Petrified Everyone Is Over China * $236 billion spent boosting stocks, reserves down $286 billion * Mizuho sees fixed asset investment of $1.6 trillion in 2-3 yrs Share on FacebookShare on Twitter When Premier Li Keqiang took the stage Thursday at the World Economic Forum’s “Summer Davos” meeting in Dalian, he told business leaders that although China faces challenges, growth is on track and fundamentals remain sound. The upbeat message is all part of a ‘New Normal’ narrative from China’s leadership as the economy transitions from relying on heavy industry and debt to one driven by consumption and services. What Li didn’t mention was the spiraling bill associated with...
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...and worlds fastest growing economy. China’s rise to worldwide influence started in 1949 with the evacuation of the whole parasitic monetary, comprador and theoretical classes who had served as the delegates for European, Japanese and US settlers depleting China of its great wealth. The method used by Segal to quantify growth is promptly problematic. As china regained its great power status, it is expected to become as great empire have throughout history, replace its place as East Asia’s hegemonic power, extend its influence wherever it can in the rest of the world. This country had been reshaped by the revolution of 1911 & 1949 that had ended dynastic rule and brought the communist party, respectively. The rise of china to become the 2nd largest economy in the world was made possible only through the success of the Chinese communist revolution in the mid 20th century. China’s dynamic growth began in 1950, when the agrarian reform provided lands, infrastructure, and technical assistance to hundreds of millions landless, dispute peasants and landless rural workers. Through what is now called the ‘human capital’ and gigantic social mobilization, the communists built roads, airfields, bridges, canals and railroads as well as the basic industries like, coal, iron and steel to...
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...| IMPACT CHINA ASEAN FREE TRADE AGREEMENT (CAFTA) ON INDONESIA ECONOMYWritten by Yuliana (15 Jan 2015)Overview of ASEAN – CHINA Free Trade Agreements In November 2001, ASEAN and China agreed to launch negotiations for an ASEAN-China Free Trade Area (ACFTA). In the following year, ASEAN and China signed the Framework Agreement on Comprehensive Economic Cooperation between ASEAN and China.The objectives of this Agreement are to: (a) | strengthen and enhance economic, trade and investment co-operation between the Parties; | (b) | progressively liberalise and promote trade in goods and services as well as create a transparent, liberal and facilitative investment regime; | (c) | explore new areas and develop appropriate measures for closer economic co-operation between the Parties; and | (d) | facilitate the more effective economic integration of the newer ASEAN Member States and bridge the development gap among the Parties. | | | | The Agreement on Trade in Goods was signed in 2004 and implemented in 1 July 2005 by the ASEAN countries and 20 July 2005 by China. Under this Agreement, the 6 original ASEAN members and China have to eliminate tariffs on 90% of their products by 2010, while Cambodia, Lao PDR, Myanmar and Vietnam, have until 2015 to do so. | | | | | | The Trade In Services Agreement entered into force in July 2007. Under this agreement, services and services suppliers/providers in the region will enjoy improved market access and national treatment...
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...CHINA'S ECONOMY AFTER FIFTY YEARS: RETROSPECT AND PROSPECT Thomas G. Rawski University of Pittsburgh September 1999 As the People's Republic of China celebrates its fiftieth anniversary, economists look back on a remarkable kaleidoscope of events and policy shifts that, despite episodes of vast suffering and waste, have brought enormous material benefits to China's teeming masses. The economy inherited by China's new Communist leaders in 1949 was overwhelmingly agrarian, ravaged by twelve years of warfare, and wracked by hyperinflation. Despite the strains imposed by China's participation in the Korean War, the new government quickly resolved difficult short-term economic obstacles and embarked upon a long-term process of socialization and development. China's experience of socialist planning, which roughly coincides with the period from 1949 until the death of Mao Zedong in 1976, left a mixed economic legacy. Like other socialist regimes, China's new leaders poured resources into activities and industries linked to the expansion of national power. Production of steel, machinery, and building materials multiplied prodigiously. China succeeded in fabricating nuclear and thermonuclear weapons. Although these advances relied initially on technical and financial support from the Soviet Union and its East European allies, China's success in penetrating new industries and mastering new technologies following the withdrawal of Soviet aid demonstrated that a succession of Five-Year...
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...Abstract Since 2005, real estate problem has become a hot topic, when two meetings convened life during, the central and local governments offer some corresponding measures, but also makes the real estate problem into hot issues the top spot. Real estate to measure a country's economy lost the rise. Real estate industry continues to heat up to China's economy will surely caused significant effects that have positive and negative. When the rise in house prices range in control and its influence will when outweigh the costs, conversely when house prices do not control, its influence will do more harm than good. Introduction Real estate prices question has been one of the important bothers Chinese governments, in my personal view, China's real estate prices continued to raise a few reasons. Was the total population growth, income level, continue to improve, housing costs rising prices, housing loan stimulation, rising expectations, etc. These reasons have been plagued by domestic real estate researchers, real estate prices also leads to national many influence. Its positive influence is can promote economic growth and increase GDP; Negative influence is can lead to inflation, expand the gap between rich and poor. 3.0 Research Methodology Choosing the topic and search the information on the Internet Neatening up the information I search from the Internet Collecting the data Making conclusions Analyzing the reasons by myself Coming up with the solutions...
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...Capital Structure, Optimization, Strategy Abstract. Optimize the capital structure is the fact that the premise of improving corporate governance.This paper describes the status of the capital structure of Chinese commercial banks, analyzes the main problems of Chinese commercial banks supplement existing capital structure, optimization strategies proposed capital structure of commercial banks in China, China's policy of commercial banks and other wealthy significant ownership concentration, such as optimization of innovative recommendations. Introduction The capital structure of the model can have a significant impact on the Company's operating performance.This effect can be divided into two cases: one is the direct impact that the capital structure, the financing risk and the cost of capital can directly affect business performance; while another case is the indirect impact, mainly on the company's first impact on the governance structure, and then have an impact on business performance through the governance structure.The pace of development of China's listed banks initially very slow. Under conditions of economic system reform, the bank's capital structure gradual adjustments, operating performance has gradually improved. However, compared with the world's developed countries, Chinese commercial banks are currently many problems still exist. Which is very important point is that the capital structure is irrational, resulting in bank governance structure...
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...the country’s economy. China’s tremendous growth in GDP over the years has indeed shocked the world. With the implementation of the Chinese Economic Reform, China’s GDP has seen a tenfold increase and has even overtaken Japan to be the second largest economy after the United States. However, there is always a downside to economic progress in a country. Pollution. Not only is pollution is a huge problem in China, it is in fact a problem in many industrialised cities. China is saturated with heavy industry, metal smelters, and coal-fired power plants which are all paramount in maintaining the fast-paced economic growth it is currently experiencing; even as they generate tons of hazardous gases and soot into the air. The air pollution and smog in two of China’s biggest cities -Beijing and Shanghai- are sometimes so bad, airports are forced to shut down due to of poor visibility. That is not all, the air quality of Beijing is said to be 16 times worse than New York City. Blue skies are a rare sight and buildings several blocks away are difficult to locate, visually. Apart from that, sometimes you can't see the street from the 5th floor window in Shanghai....
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...2. Dealing with China: An Insider Unmasks the New Economic Superpower As President George W.Bush’s Treasury secretary from July 2006 through January 2009, Henry Paulson was the president’s leading policy adviser on both domestic and international issues. He is well know to the world at the time of the financial crisis in US. Henry Paulson has made over 100 trips to China and developed intimate relationships with China’s political elite, including Presidents Hu Jintao and Xi Jinging as well as its banking giants, most notably the industrial and Commercial Bank of China’s chairman Jiang Jianqing. Therefore, he has a depth knowledge about China’s economy and still been watching China’s emerging economy until now. In his new book, he describes China’s recent rise to global supremacy and the challenges that lie ahead. He also points out that China is American’s most important economic partner and that how to corporate intelligently to make both nations benefit in the future. In the United States, banks and capital markets are more stable and better capitalized than they were in the financial crisis 2008. As changing in government regulators and American banking system, US still the largest and richest economy, with a normal GDP more than twice the size of China. But according to Paulson, he warns “It’s not a question of it, but when, China’s financial system, particularly the trust companies, will face a reckoning and have to content with a wave of credit losses and debt restructuring”...
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...Survey Sampling Report Asj’a Washington 1 March 2015 American Intercontinental University Abstract An important part of data collection is the research and the study. Sampling is unbiased and can take place in any industry whether its political, or general. The sampling helps determine characteristics of an entire population. Some sampling can be appropriate to get a true value and some require a more normal distribution of a larger sample size. Either way, this can investigate any circumstance. The Los Angelos Bloomberg conducted a poll from June to July 3. This provided a nationwide sample of U.S. households. 4,466 were invited with only 1,904 (43%) responding to the survey. This included 839 minors ages 18 to 24. In terms of age the results weighed in to U.S. Census for 12-24 years old in regard to race, ethnicity, gender and region(Los Angelos A.1.). The large majority were bored with entertainment chooses such as Myspace, or Youtube some or most of the time with not enough options. This poll suggest the revolution of entertainment media and technology have not taken hold. Polls found interest in seeing movies in theaters more entertaining. Some were even found overwhelmed with the multiplex as not as popular over boredom. A signature trait predicted majority of females 15 to 17 and 21 to 24 prefered to multitask than to do one thing at a time. Most said they are too busy to do only one thing at a time because they need something to do during commercials...
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...KONG—Alongside an armada of paramilitary patrol vessels and fishing boats, China has fired off a barrage of historical records to reinforce its claim over a disputed shoal near the Philippines in the South China Sea. While this propaganda broadside makes it clear Beijing will take a tough line with Manila as a standoff over Panatag (Scarborough) Shoal continues into a seventh week, the exact legal justification for China's claim and the full extent of the territory affected remain uncertain, according to experts in maritime law. Like most of its claims to vast expanses of the resource-rich and strategically important South China Sea, Beijing prefers to remain ambiguous about the details, they say. This allows the ruling Communist Party to demonstrate to an increasingly nationalistic domestic audience that it can defend China's right to control a swathe of ocean territory. And, it avoids further inflaming tensions with neighbors who are already apprehensive about China's growing military power and territorial ambition. "This ambiguity serves China's domestic purpose which is to safeguard the government's legitimacy and satisfy domestic public opinion," said Sun Yun, a Washington DC-based China foreign policy expert and a former analyst for the International Crisis Group in Beijing. Potential flashpoint Rival claims to territory in the South China Sea are one of the biggest potential flashpoints in the Asia-Pacific region. China, the Philippines, Vietnam...
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...Foreign Policy Research Institute FOOTNOTES Vol. 16, No. 06 The Newsletter of FPRI’s Wachman Center June 2011 THE RISE OF CHINA’S ECONOMY By Thomas G. Rawski Thomas G. Rawski, Professor of Economics and History, joined the University of Pittsburgh's faculty in 1985 after fourteen years at the University of Toronto. His research focuses on the nature and implications of recent developments and long-term changes in the economy of China. He delivered this paper at A History Institute for Teachers, March 19–20, 2011 on “China and India: Ancient Civilizations, Rising Powers, Giant Societies, and Contrasting Models of Development,” held at the University of Pennsylvania. This History Institute was co-sponsored by The Foreign Policy Research Institute’s Wachman Center as well as by three centers at the University of Pennsylvania – Center for East Asian Studies, South Asia Center, and Penn Lauder CIBER (Center for International Business Education and Research). 1 China’s remarkable economic boom, now in its fourth decade, has spawned numerous discussions of “China’s Rise.”2 Beijing’s self-congratulatory slogan “China’s peaceful rise” has advanced this theme. From a historical perspective, however, this terminology seems misplaced. Both the Ming (1368-1644) and Qing (1644-1912) empires occupied key positions in Asian trade and diplomacy. Crude figures compiled by Angus Maddison, author of several sweeping studies of global economic history, show China contributing nearly one-third...
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...Direct Investments (FDIs) to boost their economy growth. China has also adopted several trade policies to liberalize their economy to encourage global trade. This will not only benefit the country, but the rest of the world consequently. This essay will attempt to analyze the performance trend of China’s economy with the consideration of the Production output performance analysis, Labour market analysis and Price level analysis. GDP growth rate Fig 1a) China’s annual GDP growth rate from 2004 – 2014 (Tradingeconomics.com, 2014). As shown in Fig 1a), China is seen to have a positive economic growth from 2004-2014 and a spike in it’s growth rate in 2007 before the global financial crisis in 2008. China then took a steep fall in 2008-2009 to 6.3% GDP per annual. The reason behind the plummet is due to capital flight of American Multinational Co-operations from the Chinese Economy due to the lost in investor confidence and the instability of their home country The cause of China stock market crashing was due to the sudden pull out of western partners (Bank of America, UBS, RBS, etc) , by selling their minority stocks to retrieve capital. This dealt a massive blow to China’s fledgeling sovereign...
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...study, “, China will have an urbanized population over one billion by the year 2030, from approximately 600 million today. As 400 million more people move from the countryside to urban population centers, there will be massive shifts in income, consumption, and the use of public goods (mass transportation, education, etc.). These changes will have a great impact on China’s society and economy. Why China’s Urbanization cannot be stopped China’s development over the last 30 years since the opening of China’s doors in 1978 has been anything but a smooth, national process. Indeed, starting with Guangzhou and following with Shanghai, Beijing and now Tianjin, the mega-cities have developed at a much faster pace than its surrounding areas, with surrounding cities, and rural areas lagging far behind. Both geography and socio-political concerns have contributed to this pattern of growth. Geographically, the coastal areas have been China’s traditional powerhouses in trade and commerce, and given China’s borders with the Himalayas, the Gobi Desert, and the tropical forests of Southeast Asia, the coastal areas served as China’s primary (if not only) conduit to the West. Socio-politically, Guangzhou’s and Shenzhen’s proximity to Hong Kong made them ideally suited to serve as the first door to the west; Shanghai’s location at the terminus of the Chang Jiang made it a historically important port of trade, both for domestic trade inland and for ocean going foreign trade, and Shanghai quickly...
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...Fancheng Wang Professor Steven Cassedy MMW 22 A10 March 16, 2012 One-child Policy in China China’s one-child policy, one of the most controversial policies, has been intensely changing China’s social structure since 1979. This policy worked as a milestone on controlling the mass amount of population and had a profound impact on all aspects of Chinese’s life. Apparently, it decelerates the growth rate of population; otherwise, there could be 23 million newborns in China annually (Shanor 53). To some extent, this policy relieves a comparative land shortage under the mass population in the countryside (Davin 65). In addition, it raises the average level of education and health care in the city because parents are likely to put more effort into taking care of the only child in the household (Kane 109). Despite its marvelous success in both the city and countryside, some scholars are concerned with the side effects tied to this policy, such as “little emperors”, labor force shortage and an aging society, which will only escalate in the future (Shanor 54). Although this policy impact on people's lives are good or bad cannot draw a conclusion, but through some social problems, it is not hard to foresee the future of this policy having negative influence on the only-child’s different stages of age. Since the first generation of children under this policy have already reached their thirties and have become part of the mainstream society, these side effects have gradually impacted...
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...Bandi Mohit Sai Kumar MBA-IB, Sec: A 1226112109 The World's Greatest Coal Arbitrage: China's Coal Import Behavior and Implications for the Global Coal Market Summary China is home to the world’s second largest proven coal reserves after the United States. In addition, prior to 2009, China was a net coal exporter. Coal is a cornerstone of the Chinese economy, representing 77 percent of China’s primary energy production and fueling almost 80 percent of its electricity. Moreover, China is the world’s top coal consumer, accounting for nearly half of global consumption in 2010. Over the past decade, China’s domestic coal output has more than doubled while its coal imports have increased by a factor of 60—the country’s dependence on other nations’ coal exports is growing. In 2009, the global coal market witnessed a dramatic realignment as China burst onto the scene, importing coal from as far away as Colombia and the United States. With 182 million tons (Mt) of coal sourced from overseas suppliers in 2011, China has overtaken Japan as the world’s top coal importer. Moreover, as the world’s top coal consumer, China’s imports could rise significantly again by 2015. China’s recent move from being a net coal exporter to a net coal importer portends significant changes on the global stage, especially in terms of climate change. Understanding China’s rising coal imports is crucial for managing their global impact. Introduction In 2009 the global coal market witnessed one of the...
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