Economics
Chinese Economy
The Chinese economy is one of the largest and fastest-growing in the world, characterized by its transition from a centrally planned to a market-based economy. It is driven by manufacturing, technology, and exports, and has experienced significant growth and development over the past few decades. The government plays a significant role in shaping economic policies and has implemented various reforms to sustain growth and stability.
Written by Perlego with AI-assistance
Related key terms
1 of 5
6 Key excerpts on "Chinese Economy"
eBook - PDF- Swee-Hock Saw(Author)
- 2006(Publication Date)
- ISEAS Publishing(Publisher)
China’s Economy in Search of New Development Strategies 15 much larger in size, but also structurally different and much more mature. China’s total GDP in 2005 is almost three times that of the early 1990s. The structure of the Chinese Economy in 2005 is much more mature (for example, a larger service sector) and technologically more sophisticated (for example, a much higher proportion of high-tech products in China’s exports). In the previous spurt, China’s economy was just making its first debut in the world economy. By 2005, China has emerged as the world’s foremost manufacturing base. China has become not just a leading engine of economic growth for Asian economies, but also one of the major drivers of world economic growth. On account of its sheer size and scale, China’s levels of production, consumption, imports and exports carry significant global implications. Apart from being an important source of global economic growth, China has also operated as one of the world’s most significant integrating forces, as it is a crucial link in the world’s many production networks. On the financial side, owing to its persistent surpluses in both capital and current accounts, China has accumulated the world’s largest foreign reserve holding, which stood at US$854 in February 2006. 3 Indeed, China’s massive savings, much as the American huge spending, have contributed to the world’s macro-economic imbalances. Not surprisingly, every major bourse and every major capital market in the world has to watch closely the movements of China’s Renminbi or RMB. Viewed from a different angle, however, the present spurt of dynamic growth is not without its many dark sides. After many years of breakneck rates of growth, the economy has inevitably developed a lot of stresses and strains. More seriously, the socio-economic side-effects (that is, negative externalities) of high economic growth have surfaced.
eBook - PDFChina Rules
Globalization and Political Transformation
- I. Alon, J. Chang, M. Fetscherin, C. Lattemann, J. McIntyre, I. Alon, J. Chang, M. Fetscherin, C. Lattemann, J. McIntyre(Authors)
- 2009(Publication Date)
- Palgrave Macmillan(Publisher)
Part I Political Economy and Governance of China 1 A Contextual View of Chinese Enterprise Internationalization Francis Schortgen 15 Introduction This simply is not a market-based transaction. China is not a market economy—that’s a legal fact and an interpretation that China agreed to as part of its accession to the World Trade Organization. C. Richard D’Amato, July 13, 2005 We handed China the money they are using to try to buy Unocal ... And now we’re telling the Chinese, please keep invest- ing in our bonds but you can’t invest what amounts to a sliver of their surplus in an oil company. That’s really confused and hypocritical on our part. Clyde V. Prestowitz, July 24, 2005 The early years of the twenty-first century have ushered in a range of far-reaching milestones for both the Chinese and world economies. First, China’s process of (re)integration with the global economy (Lardy, 2002) culminated in the accession to the World Trade Organization (WTO) in 2001. Combined with sustained economic reform and restructuring efforts in the domestic political economy sphere, China’s race to the market (Story, 2003) has induced a gradual, yet irreversible, convergence towards internationally accepted norms and standards of economic interaction and increasingly market-conforming business strategies. A second critical development, meanwhile, has been China’s emergence as a source of foreign direct investment (FDI), alongside its continuing attractiveness as a leading destination of global FDI (Cai, 1999; Deng, 2004; Wu & Chen, 2001). Spearheading the still comparatively 16 Francis Schortgen small but rapidly expanding outward FDI wave are increasingly asser- tive Chinese enterprises with global ambitions.
- Kjeld Erik Brodsgaard, Koen Rutten(Authors)
- 2017(Publication Date)
- Brill(Publisher)
© kjeld erik brødsgaard and koen rutten, � � �7 | doi � �. ��63/978900433009 �_00� This is an open access chapter distributed under the terms of the CC-BY-NC License. CHAPTER 1 Introduction China’s trajectory of economic development has been remarkable in more ways than one. From 1978—the year in which China’s leadership resolved to break away from the principles of the command economy—to 2012, gross domestic product (GDP) grew more than twentyfold, from 364.5 billion to 51.63 trillion yuan (NBS 2013, table 2-1). In that same period, average per capita GDP in constant units increased from 381 to 38,420 yuan, putting China squarely in the contingent of upper middle-income countries. This economic rise has had implications which far transcend national boundaries. In 2009 China became the world’s largest exporter, a distinction accompanied by its status of the world’s largest economy by the end of 2014. 1 As such, China’s economic development has become of pertinent inter-est not only to area specialists but to researchers and policymakers the world over. However, recent studies of Chinese economic development have gener-ally paid but little attention to the role of economic discourse.2 The speeches and writings of China’s Party-state leaders and prominent economists (who often hold key positions in government’s policy organs and think-tanks) con-stituted a major subject of earlier analyses (e.g. Schran 1962; Brødsgaard 1983b; Hsu 1985). Emphasis on the study of discourse subsequently disappeared as China’s borders opened up to foreign researchers and the Chinese government began the compilation and publication of detailed statistics. The shift away from the study of indigenous discourse has been accompanied by a perceived decline of the stature of Maoist–Leninist ideology (Misra 1998).
- Manoranjan Dutta(Author)
- 2005(Publication Date)
- World Scientific(Publisher)
CHAPTER 2 CHINA’S ECONOMIC PRESENCE 1. The Chinese Economy Based on the latest figures, China’s holding of as much as US$ 700 billion in US government bonds makes her America’s second largest creditor, Japan with her holding of US$ 800 billion being the first. China’s overwhelming economic presence has recently been the subject of much discussion. China’s foreign exchange reserve has also been very large, earning her an excellent international credit rating. Over the past 25 years China has successfully invited several hundred billion dollars of foreign investment, especially in the form of Foreign Direct Investment (FDI). If China’s exports have earned a global market, superior quality and cost/price competitiveness of Chinese exports have received consumer acceptance globally. Chinese textile exports to America and Europe have passed the market test of consumer sovereignty. The threats to contain Chinese textile exports are dictated by extra-economic factors and will make consumers in Europe and America poorer in terms of their satisfaction. The World Trade Organization has delivered its verdict against the governmental subsidies for the cotton farmers in both America and Europe. Mature industrialized economies have now been found to be exposed to a serious technology gap. This gap can be filled by research and innovation and their applications to industrial products. The history of the Industrial Revolution and its progression has been based on basic research and its follow-up application to the production of goods and services. To accomplish the agenda, availability of human capital, based on education and health care must be in order. In the absence of a duly 53 54 M Dutta defined macroeconomic policy, with its well specified monetary and fiscal guidelines, the technology gap can hardly be met.
eBook - ePubEntrepreneurship in China
The Emergence of the Private Sector
- Andrew Atherton, Alex Newman(Authors)
- 2017(Publication Date)
- Routledge(Publisher)
China’s markets are highly competitive, with most major global businesses active, alongside entrepreneurial private Chinese businesses, government-supported state-owned enterprises (SOEs), and smaller enterprising businesses from the West and other Asian countries. Some of these businesses are aggressive price discounters who can absorb low margins or losses for sustained periods. Although demand is high, competition is intense and increasing.The rise in the number of private ventures operating in China, alongside the market influence of SOEs, means that indigenous competition is strong. Foreign entrants intensify this competition as they seek market share and niches. As discussed later in this chapter, local private enterprises are becoming more sophisticated, better managed and able to deploy a combination of technical skills and local knowledge to develop business models and products that are highly competitive in China. Success in Chinese markets is hard won and does not come easily to local businesses or new entrants from overseas.Domestic economic growth and the rise of the consumer economy
China is growing at lower rates than during its earlier years of economic reform. This has been reported as the country’s economic slowdown and the start of a shift to a much slower pace of development. However, this representation exaggerates the pace of the slowdown, and does not reflect the continued dynamism and strength of the Chinese Economy. Even in this ‘new normal’ of annual growth rates of six to seven per cent, China is one of the most rapidly expanding economies in the world, outpacing the West by some margin. Growth at rates above other large economies is likely to persist for some time, even though over time there will be convergence with a slower overall global growth rate.1
eBook - PDFThe Political Economy of East Asia
Regional and National Dimensions
- K. Cai(Author)
- 2016(Publication Date)
- Palgrave Macmillan(Publisher)
Through a series of economic reform programs since the late 1970s, the Chinese economic system was fundamentally transformed. As a result, the command economy was basically replaced by a market economy, although far from fully fledged. 7.3 China rising as an economic power As a result of the economic reform and the opening policy, China achieved remarkable sustained rapid economic growth with an average annual growth rate of GDP reaching 10.0% between 1980 and 2003, more than three times the world average of 3.1%. In the meantime, while there was an average annual growth rate of 4.7% in agriculture over the same period, the average annual growth rates of industry, manufacturing, and services reached 11.7%, 11.3%, and 11.2%, respectively. 14 Consequently, the absolute size of the Chinese Economy of 2003 in terms of GDP was almost 10 times that of 1978. 15 The rapid economic growth of China was particularly driven by the rapid export growth, which reached an average annual rate of 16.4% in 1978–2003 with the total volume of exports rising from $9.8 billion to The Chinese Political Economy Since 1949 165 $438.2 billion over the period. 16 The share of exports in China’s GDP jumped from 4.6% in 1978 to 30.9% in 2003. 17 The FDI was responsible for much of the export growth in China since the late 1970s. While FDI in China rose from $1.2 billion in 1979–82 to $53.5 billion in 2003 with accumulated FDI amounting to $499.8 billion, 18 much of it was involved in export industries. As a result, the contribution of foreign affiliates to China’s exports rose from 4.4% of China’s total exports in 1980 to 54.8% in 2003. 19 More than 90% of exports by foreign affiliates are manufactures, the most prominent of which are machinery, equipment, and other manufac- tures. Particularly, the proportion of exports by foreign affiliates in technology-intensive industries rose from 59% to 81% between 1996 and 2000.
Index pages curate the most relevant extracts from our library of academic textbooks. They’ve been created using an in-house natural language model (NLM), each adding context and meaning to key research topics.
