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.
Table of Contents
1. Economy of People’s Republic of China
2. Development of Chinese Economy
3. Phenomenon of Chinese Economy
4. Perspectives of Chinese Economy
Objectives and Themes
This paper examines the structural development, current economic status, and future trajectory of the People's Republic of China. It addresses how China evolved from a centrally planned system to a global economic powerhouse, while investigating the underlying cultural, political, and strategic factors that influence its growth and market behavior.
- Historical transition from centrally planned to reform-oriented economy.
- Structural composition of GDP and the role of State Owned Enterprises.
- The influence of Confucianism on long-term economic strategy and planning.
- Evaluation of growth statistics and the reality behind unemployment rates.
- Integration into the global market via trade organizations and international agreements.
Excerpt from the Book
Phenomenon of Chinese Economy
The fact that the Middle Kingdom has joined World Trade Organizations has led to decrease the enormous number of regulations and limits connected to foreign investments. The law became less and less strict. (No one says that now law for FDI is no strict and complicated, but it is nothing like it was years before). Till the late 90s the most popular form of FDI were the offices which had only the representative function (Representative Offices- RO) or the copartnerships with Chinese partners. Those points stem from the fact that profiting in any why by foreign company was at that time illegal.
However, after China joined World Trade Organization the ‘better days’ for the West and not only came. At this day and age most of the companies choose the form Wholly Foreign Owned Enterprise (WFOE), which leaves all of the decision process in the hands of foreign investor. Thanks to this way of investment the risk connected to cooperation with Chinese partner has been eliminated.
Summary of Chapters
Economy of People’s Republic of China: An introduction to China's demographic and economic size, highlighting its transition from a centrally planned economy to one that allows foreign investment and privatization.
Development of Chinese Economy: Analyzes the structure of China's GDP, the significance of its participation in global trade organizations, and the comparative growth against the US economy.
Phenomenon of Chinese Economy: Examines the evolution of foreign investment regulations, the shift toward Wholly Foreign Owned Enterprises (WFOE), and presents surprising statistics regarding infrastructure and consumption.
Perspectives of Chinese Economy: Explores the role of long-term planning and Confucian tradition in the Chinese model, while addressing criticisms regarding market entry, unemployment data, and stability forecasts.
Keywords
People's Republic of China, GDP, Foreign Direct Investment, WFOE, State Owned Enterprises, Confucianism, long-term planning, economic reform, global market, WTO, unemployment, savings rate, infrastructure, innovation, economic growth.
Frequently Asked Questions
What is the primary focus of this paper?
The paper examines the economic rise of the People's Republic of China, analyzing the historical reforms, structural changes, and the unique strategies that have driven its growth since the late 1970s.
What are the central thematic fields covered?
The main themes include historical economic shifts, foreign investment policies, the influence of national tradition on strategic planning, and the structural composition of the Chinese market.
What is the central research focus?
The work aims to understand the reasons and implications behind China's numeral economic data and identify what factors distinguish its economic model from western systems.
Which methodology is applied in the research?
The paper utilizes a comparative and descriptive analysis of economic statistics, institutional reforms, and historical context to evaluate the development of the Chinese economy.
What is addressed in the main body of the text?
The main body covers the history of reforms, the transition toward private investment, sector-specific data, the impact of Confucian philosophy on business practices, and an analysis of current growth forecasts.
Which keywords characterize this work?
Core keywords include economic reform, GDP, FDI, WFOE, state ownership, global market integration, and cultural influences on long-term economic strategy.
How does the Chinese language influence the savings rate?
The author suggests that the lack of tense differentiation in the Chinese verb structure reinforces a perception that the future is as accessible as the present, contributing to a high propensity for savings.
What is the author's stance on official unemployment data?
The author argues that official unemployment figures in China are potentially misleading or "fake," as they do not account for the high volume of redundant or pointless labor roles created by the government.
Why does the author categorize Chinese economic strategy as unique?
The strategy is unique due to its explicit long-term planning, spanning over 30 years, which is deeply rooted in traditional Confucian philosophy and starkly contrasts with the short-term focus common in western economies.
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- Julia Krasnicka (Autor), 2017, Economy of People's Republic of China, Múnich, GRIN Verlag, https://www.grin.com/document/951257
