Download China`s Economy

GLOBALIZATION: THEN AND NOW
“SLEEPING GIANT” NO MORE
"Let China sleep, for when she wakes the world
will shake.”
-- Napoleon Bonaparte (1805)
WORLD OUTPUT: 1820-1950
Country
1820
1950
-----------------------------------------------------------------------------China
30%
5%
India
16%
4%
European Big Four
17%
19%
USA
2%
27%
CHINESE ECONOMY:
PRE-REFORM YEARS
POST-MAO CHINESE
REFORMS
Pre-1949: Traditional Agrarian
Economy with Limited Industry
1978-1984: Rural Reforms
1949-1957: Following the Soviet Model
of Command Economy
1985-1989: Urban Reforms
1958-1960: The Great Leap Forward
Movement
1992-1999: Market Reforms
1961-1964: Post-GLF Economic
Adjustment
1965-1976: The Cultural Revolution
and Self-Reliance
2001--
WTO-Led Reforms
RISE, FALL AND REEMERGENCE OF CHINA
WORLD’S LARGEST ECONOMIES
WORLD’S LARGEST ECONOMIES
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China: https://www.cia.gov/library/publications/the-worldfactbook/geos/ch.html
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GDP (purchasing power parity): $18.09 trillion (2014 est.)
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GDP (official exchange rate): $10.36 trillion (2014 est.)
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#2 (EU, China, US)
http://www.forbes.com/sites/timworstall/2014/12/07/chinas-now-theworld-number-one-economy-and-it-doesnt-matter-a-darn/
#2 (US, China, Japan)
http://money.cnn.com/news/economy/world_economies_gdp/
Note: because China's exchange rate is determined by fiat, rather than
by market forces, the official exchange rate measure of GDP is not an
accurate measure of China's output; GDP at the official exchange rate
substantially understates the actual level of China's output vis-a-vis the
rest of the world; in China's situation, GDP at purchasing power parity
provides the best measure for comparing output across countries
United States: https://www.cia.gov/library/publications/the-worldfactbook/geos/us.html
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GDP (purchasing power parity): $17.35 trillion (2014 est.)
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#3 (EU, China, US)
GDP (official exchange rate): $17.35 trillion (2014 est.)
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#1 (US, China, Japan)
KEY COMPONENTS OF CHINA’S DEVELOPMENT
STRATEGIES
1. Special Economic Zones
1. A Special Economic Zone (SEZ) is a geographical region that has
economic and other laws that are more free-market-oriented than a
country's typical or national laws.
2. In China, founded by Deng Xiaoping in the early 80s.
2. Export-led and FDI-driven
1. A foreign direct investment (FDI) is a controlling ownership in a
business enterprise in one country by an entity based in another
country.
3. Manufacturing-centered
4. State as the “visible hand”
5. Heavy investment by the state in infrastructure and agriculture
6. High national and individual saving rate
SOCIALIST (COMMUNIST) WITH
CHINESE CHARACTERISTICS
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Socialism with Chinese characteristics is the official ideology of the CCP based upon socialism. This
ideology supports the creation of a socialist market economy dominated by the public sector since China is
in the primary stage of socialism. The Chinese government maintains that it has not
abandoned Marxism and argues that socialism is compatible with these economic policies.
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In current Chinese Communist thinking, China is in the primary stage of socialism—a view which explains
the Chinese government's flexible economic policies to develop into an industrialized nation.
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Deng Xiaoping, the architect of the Chinese economic reforms, did not believe that the market economy
was synonymous with capitalism or that planning was synonymous with socialism
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"What is socialism and what is Marxism? We were not quite clear about this in the past. Marxism
attaches utmost importance to developing the productive forces. We have said that socialism is the
primary stage of communism and that at the advanced stage the principle of from each according to
his ability and to each according to his needs will be applied. This calls for highly developed
productive forces and an overwhelming abundance of material wealth. Therefore, the fundamental
task for the socialist stage is to develop the productive forces. The superiority of the socialist system
is demonstrated, in the final analysis, by faster and greater development of those forces than under
the capitalist system. As they develop, the people's material and cultural life will constantly improve.
One of our shortcomings after the founding of the People's Republic was that we didn't pay enough
attention to developing the productive forces. Socialism means eliminating poverty. Pauperism is not
socialism, still less communism.“
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DENG XIAOPING
Socialism and communism are alike in that both are systems of production for use based on public
ownership of the means of production and centralized planning. Socialism grows directly out of capitalism;
it is the first form of the new society. Communism is a further development or "higher stage" of socialism.
2005