Download Brief Introduction of CELAP

China — India
Cooperation and Opportunities
 Overview of Chinese Economy
 Prospects of China in Next Five Years
 Chinese Companies In Eastern India
 Possible Cooperation Areas Between
China and India
Chapter 1
Overview of Chinese Economy
Overview of Chinese Economy
I. Double Transitions
 From Rural Economy to Urban Economy
 From Planed Economy to Market-based
Economy
Overview of Chinese Economy
II. GDP & Other Developments
 Average 9.5% annual growth from 1978-2010
 Population growth 1%
 Average per capita savings deposit:
23 Yuan in 1978 — 12,400 Yuan In 2006
(About 114 times increase in constant Yuan)
 Rural electrification has exceeded 98%
 Per capita floor space increased from 8 M2 to 31
M2
Overview of Chinese Economy
III. Foreign Trade
 20.6 billion USD in 1978 to 2973 billion USD in
2010 (Annual over 17% growth).
 In 2011, the figure is 3642 billion USD.
 The target for 2015 is 5400 billion USD, which
will make China NO. 1 in terms of international
trade.
Overview of Chinese Economy
IV. Foreign Exchange Reserve
 Due to continuous increase of trade surplus and
high investment growth, China’s foreign
exchange reserve is rising exponentially.
 By 2010, national foreign exchange reserve
increased to 2.8 trillion USD.
 By 2011, national foreign exchange reserve
increased to 3.181 trillion USD.
Overview of Chinese Economy
V. Rapid Urbanization
 In 1978, China’s urbanization rate was
17.92%.
 In 2007, China’s urbanization rate reached
46.59%.
 By 2011, China’s urbanization rate exceeded
50%.
Overview of Chinese Economy
Graph of China’s Urbanization Rate
%
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
1980
1983
1986
1989
1992
1995
1998
2001
2004
2007
Year
Year 2007
China
UK
Australia
USA
France
Germany
Japan
Russia
Brazil
India
Urbanization
(%)
46.59
90
88.9
85
77.6
73.7
66.6
72.8
86
29.8
Overview of Chinese Economy
VI. Three Industries
Item
First
Industry
Second
Industry
Third
Industry
1978
28.2%
47.9%
23.9%
2010
10.18%
46.86%
42.96%
Year 2010
Third
%)
Industry
(GDP
China
USA
Japan
UK
France
India
42.96
78.9
72
72.8
65.5
54
 In 2011, Third Industry made up 43.1% of China’s
total GDP.
Overview of Chinese Economy
VII. Poverty Reduction
 In 1978, the absolute poor numbered 250 million
and poverty incidence was 33.1%.
 By 2009, among total population of 1.31 billion, the
absolute poor numbered less than 35 million with
poverty incidence 2%.
 By 2010, the absolute poor numbered 26.88 million.
 By 2011, China raised poverty line from 1196 Yuan
to 2300 Yuan (about 1 USD/day, World Bank
Poverty Line is 1.25 USD/day). The absolute poor
maybe number around 122 million after the
increase of poverty line.
Chapter 2
Prospects of China In Next
Five Years
Prospects of China in Next 5 Years
I. Stable Economic Growth
 Chinese economy will maintain 7%-8% growth.
 Urbanization is the major driving force:
2015 urbanization target 51.5%, each year 12 million
people – about 4 million families will be urbanized;
200 million rural people will become urban population
in next 10 years.
Prospects of China in Next 5 Years
II. Some Important Figures
 Increase service sector contribution from 43% to 47%.
 Increase spending on R & D: 2.2% of GDP.
 Holding CPI at or below 4%.
 Increase non-fossil fuel use to 11.4%.
 Reduction of energy use per unit of GDP: 16%.
 Increase forest coverage by 21.6%.
 Average per capita GDP increase to 6000 USD.
(2011 per capita GDP is 5414 USD, world ranking 89)
Prospects of China in Next 5 Years
III. Change of the Pattern of Economic
Development
 Problem:
Imbalanced, uncoordinated & unsustainable development.
 Goal:
From export & investment to consumption, export &
investment;
From development of second industry to coordinated
development of 3 industries;
From resource consumption to technology & labor quality and
management innovation.
Prospects of China in Next 5 Years
V. Lower GDP Growth Target To 7%
 Emphasize the quality of economic growth.
 Economic structure more important than economic
aggregate.
 Environmental Protection:
Circular economy;
Low-carbon economy;
Environment friendly economy.
 Economic growth with improving people’s livelihood.
Prospects of China in Next 5 Years
V. Middle & Western China —
New Popular Regions In the Future
 Major metropolitans such as Shanghai & Guangzhou
restricted by high cost, transportation & population.
 Middle & western regions rich in natural resources.
 With 18,000 KM border line and neighboring 14
countries, middle & western regions will be the theme
for further opening-up to middle, south and southeast
Asia.
 Middle and western regions will mainly develop and
upgrade resources processing industry, equipment
manufacturing industry and modern service industry.
Prospects of China in Next 5 Years
VI. New Strategic Industries
 New energy: nuclear, wind & solar power.
 Environment friendly and energy saving: energy
reduction technology.
 New generation IT: broadband networks, internet
security infrastructure, network convergence.
 Biotechnology: drugs and medical devices.
 New materials: rare earths and high-end semiconductors.
 Automobiles of new energy: clean energy vehicles.
 High-end equipment manufacturing: aviation
equipment, satellite and applications, railway
transportation equipment, marine engineering equipment,
and smart manufacturing equipment.
Chapter 3
Chinese Companies In
Eastern India
Chinese Companies In Eastern India
I. Details of Cooperation
 In the five states of Eastern India (West Bengal,
Orissa, Bihar, Jharkhand, Chhattisgarh), about
15 Chinese companies contract 28 projects.
 These projects include: metallurgy, power plant,
mining, etc.
 Chinese companies directly hire around 14,000
Indian employees in these projects.
Chinese Companies In Eastern India
II. Projects Contracted By Chinese Companies
 Steel plants: 11 projects;
 Power plants: 12 projects;
 Coal mine: 1 project;
 Environmental protection: 4 projects.
Chinese Companies In Eastern India
III. Why Come?
 Low cost;
 Mature technology;
 Reliable equipment;
 Rich working experience;
 High working efficiency;
 Short construction period and fast supply of
products.
Chinese Companies In Eastern India
IV. Trade Between China & India
 Trade volume between China & India in 2011:
73.9 billion USD, with 19.7% increase.
 Target for 2015: 100 billion USD.
 January — May 2012: 28.5 billion USD, 2.8% less
than the same period last year.
 India’s exports to China: iron ore, machinery,
petroleum product, diamond, transportation
equipment, etc.
 China’s exports to India: electronics, steel, coke,
organic chemicals, transportation equipment, etc.
Chapter 4
Possible Cooperation Areas
Between China & India
Possible Cooperation Areas Between
China & India
I. Energy Saving Industry
 Energy saving is the new strategic industry largely
supported by Chinese Government.
 China already has the world biggest installed hydro
power capacity (230 million kilowatt) and wind
power capacity (47 million kilowatt), and the world
biggest collector area of solar water heaters.
 By 2015, the total production value of energy
saving industry is expected to be 4.5 trillion Yuan.
Possible Cooperation Areas Between
China & India
II. Infrastructure
 China’s advantage of infrastructure construction:
Mature technology;
Reliable equipment;
Rich experiences.
 India’s ambition for infrastructure construction:
1 trillion USD investment in next five years.
Possible Cooperation Areas Between
China & India
III. Tourism
 The convenient Kunming — Kolkata daily flight is
the shortest flight between China and India.
 In 2011, Yunnan Province received nearly 4 million
(precisely 3,954,000) person times foreign visitors
and 163 million person times domestic visitors.
Yunnan tourism revenue: 130.03 billion Yuan.
 Eastern India has many attractive tourist
destinations, such as Tagore literature and Bodh
Gaya in Bihar.
Possible Cooperation Areas Between
China & India
IV. Pharmaceutical Industry
 In 2009, India has 175 FDA certified medicine
production bases, but China only has 36.
 China’s pharmaceutical industry mainly exports
drug substance, but India focuses on medicine
preparation.
 China’s pharmaceutical industry may benefit
from India’s researching and talents advantage
during the cooperation.
Possible Cooperation Areas Between
China & India
V. IT Industry
 In 2011, India’s IT-BPO (business process
outsourcing) industry realized total value of 88.1
billion USD, and created direct employment of 2.5
million and indirect employment of 8.3 million.
 New generation IT industry — one of China’s seven
new strategic industries in next five years.
 China and India can explore more opportunities in
the cooperation of IT industry.
Possible Cooperation Areas Between
China & India
VI. Agriculture
 In 2006, China and India signed a MOU for
cooperation in agriculture and allied sectors.
 Cooperation fields:
Tea industry;
Agricultural machinery;
Irrigation technique, etc.
Thank You!