The most populated country in the world with population over 1.38 milliard in year 2016. Second the biggest country in the world considering the territory (more than 9 million square kilometers). Second biggest world economy, which GDP in 2015 year was estimated by International Monetary Fund 11,38 billion American dollars. In last 30 years, the fastest growing economy with average pace 10%. That is how in few sentences we can characterize the Middle Kingdom. There is no doubts that we should take into consideration the main reasons and implications for the numeral data.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- The Centrally Planned Economy and its Reforms
- China's Economic Position in the World
- Foreign Direct Investment in China
- China's Economic Growth and Development
- Long-Term Planning and the Role of Confucianism
- Criticisms of the Chinese Economy
- The High Savings Rate in China
- Unemployment in China
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
The objective of this text is to provide an overview of the Chinese economy, examining its historical development, current status, and challenges. It explores the transformation from a centrally planned economy to a more market-oriented system, while considering both the successes and criticisms of this economic model.
- The transition of the Chinese economy from a centrally planned system to a more market-oriented one.
- China's global economic position and its participation in international organizations.
- The role of foreign direct investment (FDI) in China's economic growth.
- The impact of long-term planning and Confucianism on the Chinese economic model.
- Criticisms of the Chinese economic system, including issues related to intellectual property rights, protectionism, and employment statistics.
Zusammenfassung der Kapitel (Chapter Summaries)
Introduction: This introductory section provides a concise overview of China's economic significance, highlighting its status as the world's most populous nation, second-largest economy (by nominal GDP), and a rapidly growing economy over the past 30 years. It establishes the need for a deeper understanding of the factors contributing to these statistics.
The Centrally Planned Economy and its Reforms: This section details the history of China's centrally planned economy prior to 1979, emphasizing its goal of self-sufficiency. It describes the crucial reforms introduced in 1979, which allowed for foreign investment, although government ownership of enterprises remained dominant. The section further discusses the partial privatization of State-Owned Enterprises (SOEs) during the late 1980s and 1990s, alongside the gradual reduction of protectionist measures. The growth of the private sector to contribute 70% of GDP is highlighted.
China's Economic Position in the World: This section clarifies China's position as the second-largest economy by nominal GDP and the largest by purchasing power parity, noting the Chinese government's denial of the latter claim. It presents the sectoral composition of China's GDP (services, industry, and agriculture), alongside data on unemployment and inflation. The importance of China's participation in the WTO, APEC, and G-20 is also stressed, along with its trade agreements with numerous countries.
Foreign Direct Investment in China: This chapter examines the impact of China's World Trade Organization (WTO) accession on foreign direct investment (FDI). It describes how joining the WTO led to a significant decrease in regulations and restrictions on foreign investments, making it easier for foreign companies to operate in China. The shift from representative offices and joint ventures to the more common Wholly Foreign Owned Enterprises (WFOEs) is detailed as a key aspect of this change, highlighting the increased control foreign investors now wield.
China's Economic Growth and Development: This section presents impressive statistics demonstrating China's rapid economic development, focusing on achievements in infrastructure, automobile production, mobile phone usage, and internet penetration. The significant role of e-commerce in Chinese daily life is highlighted, along with the extent of China's railway network and ambitious subway expansion projects. The impressive scale of these achievements serves as further illustration of China's rapid economic growth.
Long-Term Planning and the Role of Confucianism: This section introduces the long-term economic planning goals of President Xi Jinping, including the vision of establishing a moderately prosperous society by 2021 and a fully developed country by 2049. The discussion emphasizes the contrast between this long-term strategy and the often shorter-term approach of Western economies. The text connects this long-term planning to historical and philosophical roots in Chinese tradition, particularly highlighting the influence of Confucianism on both business and politics.
Criticisms of the Chinese Economy: This section analyzes criticisms leveled against the Chinese economic system, focusing on concerns about intellectual property rights, protectionism favoring domestic businesses, and accusations of the Communist Party establishing an oligopoly. The section acknowledges that while progress has been made since 1998 in increasing private sector lending, the significant government control over financial institutions remains a key aspect of the system.
The High Savings Rate in China: This section explores the remarkably high savings rate in China (around 40% of GDP), and offers a linguistic explanation for this phenomenon. The unique grammatical structure of the Chinese language, where the present tense is used to express future actions, is presented as a potential contributing factor to the long-term saving habits of Chinese citizens.
Unemployment in China: This section questions the officially reported low unemployment rate in China (around 4%), arguing that the reality may be masked by a significant number of individuals employed in low-productivity or seemingly pointless jobs. This challenges the accuracy of the official statistics and provides a more nuanced perspective on the employment landscape.
Schlüsselwörter (Keywords)
Chinese economy, centrally planned economy, economic reforms, foreign direct investment (FDI), World Trade Organization (WTO), purchasing power parity, gross domestic product (GDP), Confucianism, long-term planning, State-Owned Enterprises (SOEs), protectionism, intellectual property rights, savings rate, unemployment, economic growth, e-commerce.
Frequently Asked Questions: A Comprehensive Overview of the Chinese Economy
What is the main objective of this text?
This text aims to provide a thorough overview of the Chinese economy, encompassing its historical evolution, current state, and the challenges it faces. It examines the transition from a centrally planned economy to a more market-oriented system, analyzing both its successes and criticisms.
What key themes are explored in this text?
The text explores several key themes, including the shift from a centrally planned economy to a market-oriented one; China's global economic standing and its role in international organizations; the influence of foreign direct investment (FDI); the impact of long-term planning and Confucianism on the economic model; and criticisms of the Chinese economic system, such as concerns about intellectual property rights and employment statistics.
What are the key chapters and their summaries?
The text is structured into chapters covering: an introduction to China's economic significance; a detailed analysis of the centrally planned economy and its subsequent reforms; an examination of China's global economic position; a study of the impact of foreign direct investment; an overview of China's economic growth and development, showcasing impressive statistics; a discussion of long-term planning and the influence of Confucianism; a critical analysis of the Chinese economic system; an exploration of China's high savings rate; and a discussion challenging the official unemployment rate figures.
What is the historical context of the Chinese economy discussed in the text?
The text details the history of China's centrally planned economy before 1979, emphasizing its aim for self-sufficiency. It then describes the pivotal reforms introduced in 1979, allowing for foreign investment while maintaining significant government control. The gradual privatization of State-Owned Enterprises (SOEs) and the reduction of protectionist measures are also discussed, highlighting the growth of the private sector to contribute 70% of GDP.
What is China's current economic position globally?
The text positions China as the second-largest economy by nominal GDP and the largest by purchasing power parity (though this latter claim is disputed by the Chinese government). It analyzes the sectoral composition of China's GDP and its participation in key international organizations such as the WTO, APEC, and G-20.
What is the role of foreign direct investment (FDI) in China's economic growth?
The text examines how China's WTO accession significantly impacted FDI, leading to reduced regulations and a shift towards Wholly Foreign Owned Enterprises (WFOEs), granting foreign investors greater control.
How does long-term planning and Confucianism influence the Chinese economy?
The text discusses President Xi Jinping's long-term economic planning goals, contrasting them with Western approaches. It highlights the influence of Confucianism on both business and politics in shaping this long-term vision.
What are some criticisms of the Chinese economic system?
Criticisms discussed include concerns about intellectual property rights, protectionism favoring domestic businesses, and accusations of an oligopoly controlled by the Communist Party. The text also acknowledges ongoing challenges related to private sector lending and government control over financial institutions.
Why is China's savings rate so high?
The text explores the remarkably high savings rate (around 40% of GDP), proposing a linguistic explanation. The grammatical structure of the Chinese language, where the present tense often refers to future actions, is suggested as a potential contributing factor to long-term saving habits.
How accurate is the official unemployment rate in China?
The text questions the accuracy of the officially reported low unemployment rate, suggesting that it might mask underemployment in low-productivity or seemingly pointless jobs.
What are the key words associated with this text?
Key words include: Chinese economy, centrally planned economy, economic reforms, foreign direct investment (FDI), World Trade Organization (WTO), purchasing power parity, gross domestic product (GDP), Confucianism, long-term planning, State-Owned Enterprises (SOEs), protectionism, intellectual property rights, savings rate, unemployment, economic growth, and e-commerce.
- Quote paper
- Julia Krasnicka (Author), 2017, Economy of People's Republic of China, Munich, GRIN Verlag, https://www.grin.com/document/951257
