...The Chinese Economy The People's Republic of China is the world's second largest economy after the United States. It is the world's fastest-growing major economy, with average growth rates of 10% for the past 30 years. China is also the largest exporter and second largest importer of goods in the world. China became the world's top manufacturer in 2011, surpassing the United States. For 2010, inbound foreign direct investment into China surpassed $100bn for the first time, and investment overseas by Chinese companies in non-financial sectors totaled $59 billion. The country's per capita GDP (PPP) is $7,518 (IMF, 93rd in the world) in 2010. The provinces in the coastal regions of China tend to be more industrialized, while regions in the hinterland are less developed. China and the Political Economy of Global Engagement In many respects it was not until 1992 that China really began to engage with the global economy in a significant way. In an inspection tour of development in southern China in 1992, Deng Xiaoping praised the emergence of proto-capitalist practices in open areas and called for further opening. Following Deng’s exhortations, the CCP declared in October 1992 that China now had a ‘socialist market economy’—the ideological battle appeared to have been won, and this victory was given further force when 1993 saw more FDI flood into China than in the preceding 14 years of reform put together. A trade deficit in 1992 was turned into surplus as exports doubled in the...
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...History of the Chinese economy……………………………………………..……………………………….….…p 4 A- The Mao era (1945-1976)………………………………………………..……………………………….….…p 4 B- Post Mao era (Deng era 1976-1994)………..…………………………………………………….……….p 5 II- The process of transition……………………………………..………………………………………………………..p 5 III- Success and consequences of China’s economic transition….………………………………………p 6 IV- Challenges…………………………………………………………………………….……………..………...……………p 8 CONCLUSION…………………………………..………………………………………………………………………………..p 9 BIBLIOGRAPHY…………………………………..……………………………………………………………………….……p 11 APPENDICES…………………………………..…………………………………………………………..……………….…..p 12 INTRODUCTION | China is now becoming the world’s most prominent up and coming super power. It is a country steeped with a long and chequered past and the history books will show that it deserves its place amongst world leaders. In the last century China has experienced some of its most turbulent years and only in the very latter part of the century has it come to overthrow the oppressive shackles that have haunted the nation from the Mao era. However the case could be argued that the Mao era may have been the catalyst for much of the good that can be found in the Chinese approach to growing a stable economy. Rather than introducing radical reforms and provoking social unrest, the Deng era of Chinese rule introduced a two-track transition process that has allowed the country to gradually move from a centrally planned economy to a wiser free...
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...What were the overall development strategies in the pre reform period and in the reform period of the PRC? How do these strategies compare in terms of their achievements and the problems that arose? After 1949, the PRC abandoned the traditional household-based, “bottom-heavy” economy, and set out to utilise the Soviet Union’s socialist industrial strategy through direct government control. The traditional economy consisted of high labour-intensive productivity of agriculture, which although produced high levels of output, the opportunity for new investments and technology advances to further output was stagnated. This led to planners neglecting the labour-intensive sector and instead poured resources into capital-intensive factories. During the years of 1949-1979, China pursued a vision of socialism, labelled as the “Big Push Industrialisation” which gave overwhelming priority to maximising investment in the heavy industry. As part of this, China adopted a “command economy” system which led to the creation of State Owned Enterprises (SOE), of which the government owned and controlled all large factories, transportation and communication enterprises. The introduction of agricultural collectives meant that land and farm production were held by government commands. Planners assigned production targets to firms and allocated resources and goods among different producers. The government controlled the price system, allocating high prices to products of industry (owned by government)...
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...The connection between Thai economy and incoming of Chinese The history of Chinese immigration to Thailand dates back many centuries to Ayutthaya era. The corruption of the Qing dynasty and the massive population increase in China, along with very high taxes, caused many men to leave China for Thailand in search of work. If they became successful in settling and working in Thailand, they would send money back to their families in China. According to Wang Gungwu, Chinese migration separates into four types. First, Traders, This group comes from Chinese commercial and professional classes who went overseas for business or work including skilled tradesmen and artisans who usually owned their own business or worked for domestic Chinese businessmen. Second, Coolies, These were usually untrained, landless laborers from the peasant classes. Third, Sojourners, who are from more educated and cultured class of Chinese. They left China to express the Chinese cultures and the way of life. Sojourners was the main force that raise the overseas Chinese communities, establish schools to educate Chinese children in their language and customs, and encourage overseas Chinese to remain faithful to their culture and country and especially to the government in mainland China. And the forth, Descendants, This group of people is considered as ethnic Chinese, not overseas Chinese. Most of the Chinese who migrated to Thailand before 1932 were from the peasant, artisans, and tradesman classes. They...
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...Governmental Role in Economy and Commerce Across Chinese History Throughout Chinese history, the appropriate role government should play in economy and commerce has been a prevailing question that always incurs debates and disagreement. Over the centuries, a wide range of different opinions—from one-sided view to relatively neutral position—prevails. Each point of view contains its own unique understanding and suggestions on the issue of governing the economy. Despite of the variety of views, the grounds that those arguments based on are less diverse—from either an ideological or practical perspective. From the early stage of Chinese history, absolute unanimity was rarely found in the issue regarding governing the economy and commerce. In fact, disagreements or ambivalent views prevail. For example, Discourse on Salt and Iron from Han dynasty reveals, officers believe government interventions in industry like salt and iron are beneficial to the welfare of the entire country and “are intended to circulate accumulated wealth and to regulate consumption according to the urgency of need” (Ebrey, Chinese Civilization 63). As each side lists either the benefit or the shortcomings, it is clear that the learnt men and the minister hold completely different perspectives with learnt men oppose effective government regulation whereas the officer supports. As the record of this debate contains twenty-four chapters and the first chapter included in Chinese Civilization contains four pages...
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...Introduction English language was introduced in South China in the eighteenth century. It took root in the mid nineteenth century when a school teaching English was started. The first missionary schools lasted for 10 years (1835-1851). After the 1860 war the schools were reopened and they spread to other parts of china. Between 1872 and 1925 over 7,000 missionary schools were operational with over 260,000 students. Learning English was a means to learning modernized military methods and an opening for china to work with foreign countries and create alliances. Strained relations with USSR when Russian language was to replace English gave the Western culture a better impact opportunity (Hughes, 2006). The support of English has undergone many difficulties but since the 1980’s China has encouraged working relations and study opportunities in English as it has helped them economically, politically and in its cultural dynamics. English has received much support in recent years as it has made Chinas world market expand astronomically. On other hand, China is obliged to use English language for the purposes of international trade and interaction. This is because English has remained to be the world largest spoken language (Wu, 2012). Economical China has enjoyed successful relations with on a global scale for its conformation to the English language. Since 1980’s, Mainland China has been doing business with different international countries but especially those with an English support...
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...Jacques, The Guardian, 25 May 2006 China’s political and economic rise and what it means for the world is now a central preoccupation of analysts and policy-makers. Public awareness of China is likely to increase as the 2008 Olympics in Beijing draw near. This Research Paper is intended to act as a resource that Members of Parliament and their staff can draw upon when engaging with China’s remarkable transformation. Part I provides key facts and figures about China. Parts II and III review recent developments and future prospects by addressing four key questions. Is political authoritarianism sustainable? Can China’s development be peaceful? What are the main domestic economic challenges facing China? What is China’s impact on the world economy? Part IV summarises key aspects of UK and EU relations with China. The Paper ends with a select bibliography of key sources. The Research Paper is intended to act as a platform for a series of Library Standard Notes that will address in more depth specific issues about China that there is space here only to discuss briefly. Jon Lunn, Maria Lalic, Ben Smith and Claire Taylor INTERNATIONAL AFFAIRS AND DEFENCE SECTION Ed Beale, Ed Potton, Ian Townsend and Dominic Webb ECONOMIC POLICY AND STATISTICS SECTION HOUSE OF COMMONS LIBRARY Recent Library Research Papers include: List of 15 most recent RPs 06/21 06/22 06/23 06/24 Unemployment by Constituency, March 2006 Direct taxes: rates and allowances 2006-07 The Northern Ireland Bill [Bill...
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...Chinese Economy in 1978 Economic reforms introducing capitalist market principles began in 1978 and were carried out in two stages. The first stage, in the late 1970s and early 1980s, involved the de-collectivization of agriculture, the opening up of the country to foreign investment, and permission for entrepreneurs to start up businesses. However, most industry remained state-owned. The second stage of reform, in the late 1980s and 1990s, involved the privatization and contracting out of much state-owned industry and the lifting of price controls, protectionist policies, and regulations, although state monopolies in sectors such as banking and petroleum remained. The private sector grew remarkably, accounting for as much as 70 percent of China GDP by 2005,[4] a figure larger in comparison to many Western nations[citation needed]. From 1978 to 2010, unprecedented growth occurred, with the economy increasing by 9.5% a year. China's economy became the second largest after the United States and is projected to become the world's largest economy by 2025. Natural Resources Land Resources - China has 9.6 million square kilometres land area, accounting for 22.1% of the land area of the Asian continent, and accounting for 6.4% of the world's land area, it is one of the countries which have a vast area of land. China's abundant land resources has two significant geographical features. The share of mountains which have higher elevations and greater volatility (including hill, mountainous...
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...compare BC and Ontario situations. BC produced a lot of raw materials whose demand fell. The core of manufacturing in Canada is in Ontario (and Quebec) and the resource sectors are largely in the West and very East. When Asian economies go under the tank and reduce their demand for raw materials – the BC economy goes down, they can’t sell stuff to Asia anymore. But the Canadian dollar depreciates by 10 or 15 percent. A depreciating currency helps everybody who is exporting given whatever the price you’re exporting at. Depreciation is a net plus to Ontario, because its machines, etc. gets a bump up in exports. The boost to Ontario offsets the negative to BC somewhat. What happened in 2002-2006 when world demand increased (China and India phenomenon and U.S economic boom) drove up prices, the Canadian dollar appreciated. Ontario was damaged while the East and West of Canada boomed. 2. Describe and explain the connection(s) between the “financial sector” and the “real economy”. Why is this connection relevant to the appropriate policy response (in Canada, say) to the global financial crisis of 2007-09? When financial markets are functioning well, they play a background role in the overall behavior of the real economy. At the same time, when the economy is stable, macroeconomic considerations might appear to play a more secondary role in...
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...Name Course Institution Imperial War Museum Review Peter Kennard is known for the use of imagery that reflects the politics of Britain up until now. The work impacts other political artists in Britain and beyond. The book, “Unofficial War Artist,” is a compilation of the best of the work of Kennard. As a photomontage artist, Kennard faced the risk of letting the message overshadow the imagery, just like other artists that use art to communicate. The art of Kennard includes the use of images to represent the different circumstances in the politics of Britain. There is the use of paintings, clippings from newspapers and reports of the UN and testimonies from the victims of such events. In the end, the message of the adverse effects of war is communicated to all who come into contact with the work. The use of clippings is prevalent in the representation of the series called STOP. The combination of the magazine clippings and pictures from magazines and newspapers to show the Prague Spring, the Student Riots in Paris and the War of Vietnam. The work is simultaneously represented onto canvas whereby the work gives the story and sends out the feelings of the artist. The book on the work of “Imperial War Museum,” compiles all the works by Kennard regarding hunger, poverty, suffering, survival and debt whereby all are married at an instant. use of casual connections in the imagery and the facts is fascinating. Some of the representations appear with captions. The work on the...
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...Economic Reforms in China and Vietnam: Two Differing (And Yet Similar) Paths China and Vietnam are currently two of the largest economies in Southeast Asia. Being neighbors, they share a lengthy history which includes periods of both cooperation and conflict. Their recent histories resemble each other in many ways – both China and Vietnam were colonized (though to different extents) in the period leading up to World War 2. During World War 2, both countries were occupied (though again to different extents) by the Japanese. In the wake of the war, communist insurgencies in both countries were ultimately successful in displacing non-communist regimes which received significant foreign assistance. Given the commonalities of their recent history, it would stand to reason that both countries would have similar experiences during both their Communist and reform periods. However, this has not always been the case. In this paper, I will argue that even though both China and Vietnam have made significant advances in liberalizing their economies, what they have accomplished is often blown out of proportion. In particular, the economies of both countries are still heavily controlled by their respective governments. Though they differ in some ways – for instance, Vietnam has done a better job of liberalizing its banking system than has China, and China’s economic growth has been marked by a steep increase in inequality which has not been seen in Vietnam, they are both fundamentally similar...
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...Fin 6301 Prof. Yexiao Xu Section 001 Fall 2015 Problem Set #2 Due in class by 1:00 PM Wednesday, September 16, 2015 Show your work! 1. Mary is interested in driving a new 2015 Ford Taurus for three years. The Ford dealer quoted Mary two options— financing or leasing. The leasing deal requires a down payment of $1,999 and a monthly payment of $239 for 36 months. Alternative she can purchase Taurus at $21,999 using dealer’s promotional financing deal at 2.99% interest rate (APR on a monthly base) for 36 months. At the end of the 36 month, the car is worth 65% of the purchase price. (that is, if she leases the car, she can buy the car from the dealer at that price; if she purchases the car, she can sell the car at that price). Mary has heard that you are taking Fin6301 and would like to get your help. Assume that the interest rate is 6% (APR on a monthly base) (a) If Mary uses the financing deal to purchase her car, how much does she pay each month? (b) Which option is the best? (hint: comparing the PV of costs) 2. After graduating from UTD at age 25, John got his first job at Goldman Sachs with an annual salary of $60,000 a year and a one-time signing bonus of $25,000. He bought a car using his signing bonus. Goldman Sachs offers a 401K retirement investment plan that will match employee’s contribution up to 10%. For example if John invests 1% in the 401K account, Goldman Sachs will put in another 1% into his account. John is expecting an annual salary...
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...the rise of China, following the enhanced economic and trade relationship between China and Asian economies, and China’s increasing importance in the world economy, China’s national currency, the renminbi (RMB) will be getting global from Asia. As regional internationalization of RMB is doubleedged, in order to eliminate the financial risks brought by this process, maximize the benefits, it is necessary for China to consider the trade off between costs and benefits of RMB internationalization. RMB internationalization is a dynamic process, in accordance with the different level of the process, the phased strategy should be implemented, and the corresponding policies should be pursued too. Key word: RMB internationalization Cost and benefit Roadmap Introduction If you travel in the Asian region, you will notice that the Chinese renminbi is appearing more often in shops and restaurants, driven by the rapid growth in mainland tourist volumes. Will Chinese Renminbi be the next world currency? Since 2000, RMB internationalization has attracted great attention from the policymakers and the academics both at home and abroad. There is sizable RMB circulation in China’s neighboring countries and economies, even RMB can be fully convertible in some developed countries, some of neighboring countries and economies treated RMB as a reserve currency. This is a new economic phenomenon for both China and the world. Because in economic development history...
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...initially hit China hard. But they stand strong their economy and quickly returning to growth. In 2011, China formally overtook Japan to become the world's second-largest economy. Todays, the connection between China's economy and global economy is becoming tighter. In addition, more foreigners have expressed their admirations on China's economic achievements. They generally believe that the global economic development cannot go without China. The healthy and steady economic development of China is a huge contribution to the world. As the globalization is accelerating, the mutual dependence between China's economy and global economy has also strengthened. China is developing its transformation of economic growth mode and its economic structural adjustment. China's economic development is also becoming steadier and injecting new energy into the regional and global economy. The negative impact caused by the international financial crisis still has not completely solved but China's steady economic development gives the world's confidence on the early recovery of the global economy. China is categories as the fastest growing country in East Asia. Between the year of 1979 and 2001, Chinese real GDP grew from $177 billion to $1.16 trillion regarding to 2001 prices and real GDP per capita grew from $183 to $920. Besides, the U.S GDP is$10.19 trillion and GDP per capita is $36,840 which respectively 9 and 40 times the comparable Chinese figures. In addition, China survived the East Asian...
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...PLACE OF PUB: New York, NY II. AUTHOR’S THESIS: China is reshaping the global economy and becoming more of a challenge to the West, but if it cannot advance culturally and institutionally, it will not replace the US. III. HISTORICAL BACKGROUND: The book covers an extremely broad period of history when it discusses the rule of China. Before Jacques mentions China’s current global status, he goes over China’s past global situations, mentioning the major rulings of the Xuanzong, the Tang, the Song, the Yuan and the Ming Periods. During the Xuanzong period (712-756), China lead the time period called the “Rise of the East” and took center stage in the Global Economy. During the Tang Period (618-907), China was economically successful and politically dominant. Foreign trade was fully established by that point and territory expansion had gone to dramatic rates. The Song period (960-1279) included the most remarkable economic transformation for commercial, technological and urban economies. At this point, China had let go of some of its militarism and political domination. Shortly after, however, the Yuan era (1271-1368) restored National Unity, political strategy and militarism. Jacques argues that China and the “West” were neck and neck in the race for global economic domination until China completely veered off its track in the 1800s. While Europe and the US introduced industrial economies extremely quickly and underwent massive social and cultural reform, China stood...
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