P.R.C ECONOMY IN WORLD MARKET
1- Nail Şimşek
2-Görkem Engin
BAHÇEŞEHİR ÜNİVERSİTESİ
18.05.2011
NAİL ŞİMŞEK
GÖRKEM ENGİN
(INTERNATIONAL FINANCE)
(INTERNATIONAL FINANCE)
[email protected]
[email protected]
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P.R.C Economy History
P.R.C Economy in World Markets
P.R.C Ecomomical Databases
P.R.C’s Productions in World Market
European Union Economy Vs. P.R.C
Economy
11.05.2011
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History Of P.R.C Economy
-China's economic system before the late-1990s,
with state ownership of certain industries and
central control over planning and the financial
system, has enabled the government to mobilize
whatever surplus was available and greatly
increase the proportion of the national economic
output devoted to investment.
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History Of P.R.C Economy
-Analysts estimated that investment accounted for about 25
percent of GNP in 1979, a rate surpassed by few other
countries. Because of the comparatively low level
of GNP, however, even this high rate of investment
secured only a small amount of resources relative to the
size of the country and the population. In 1978, for
instance, only 16 percent of the GNP of the United
States went into gross investment, but this amounted to
US$345.6 billion, whereas the approximately 25 percent
of China's GNP that was invested came to about the
equivalent of US$111 billion and had to serve a
population 4.5 times the size of that in the United States
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History Of P.R.C Economy
-The limited resources available for investment prevented
China from rapidly producing or importing advanced
equipment. Technological development proceeded
gradually, and outdated equipment continued to be used
as long as possible. Consequently, many different levels
of technology were in use simultaneously (seeScience
and technology in the People's Republic of China). Most
industries included some plants that were comparable to
modern Western facilities, often based on imported
equipment and designs. Equipment produced by
Chinese factories was generally some years behind
standard Western designs.
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History Of P.R.C Economy
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- Agriculture received a smaller share of state investment than industry and
remained at a much lower average level of technology and productivity.
Despite a significant increase in the availability of tractors, trucks, electric
pumps, and mechanical threshers, most agricultural activities were still
performed by people or animals.
Although the central administration coordinated the economy and
redistributed resources among regions when necessary, in practice most
economic activity was very decentralized, and there was relatively little flow
of goods and services between areas. About 75 percent of the grain grown
in China, for instance, was consumed by the families that produced it. One
of the most important sources of growth in the economy was the improved
ability to exploit the comparative advantages of each locality by
expanding transportation capacity. The communications and transportation
sectors were growing and improving but still could not carry the volume of
traffic required by a modern economy because of the scarcity of investment
funds and advanced technology.
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P.R.C Economy In World Markets
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China's overall power consumption in April increased 11.2
percent from a year earlier to 376.8 billion kilowatt hours (kWh),
the National Energy Administration said on Saturday. That
marks a slower pace of increase compared with March when
it rose 13.4 percent year-on-year. China looks set for its worst
power shortages since 2004, putting pressure on already
squeezed industries and raising the possibility of the world's
second-largest economy turning into a net importer of diesel.
Central, southwestern and eastern provinces have introduced
power use restrictions and rationing since late March, well
ahead of the peak demand season in June, July and August,
stoking worries that shortages could worsen and spread to
more regions. On Friday, China said it would suspend diesel
exports in order to conserve supplies for domestic use.
Electricity consumption in the first four months rose 12.4
percent from the year-ago period to 1,467.5 billion kWh, the
administration said.
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P.R.C Economy In World Markets
In 1985, industry employed about 17 percent of the
labor force but produced more than 46 percent of
gross national product (GNP). It was the fastest
growing sector with an average annual growth of
11 percent from 1952 to 1985. There was a wide
range of technological levels. There were many
small handicraft units and many enterprises using
machinery installed or designed in the 1950s and
1960s. There was a significant number of big, up-todate plants, including textile mills, steel mills,
chemical fertilizer plants, and petrochemical
facilities but there were also some burgeoning light
industries producing consumer goods. China
produced most kinds of products made
by industrialized nations but limited quantities
18.05.2011 of high-technology items
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P.R.C Economy In World Markets
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Technology transfer was conducted by
importing whole plants, equipment, and
designs as an important means of progress.
Major industrial centers were
in Liaoning Province, Beijing-TianjinTangshan area, Shanghai, and Wuhan.
Mineral resources included huge reserves of
iron ore and there were adequate to
abundant supplies of nearly all other
industrial minerals. Outdated mining and ore
processing technologies were gradually
being replaced with modern processes,
techniques and equipment.
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P.R.C Economy In World Markets
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Foreign trade was small by international standards
but was growing rapidly in size and importance, as it
represented 20 percent of GNP in 1985. Trade was
controlled by the Ministry of Foreign Economic
Relations and Trade and subordinate units and by
the Bank of China, the foreign exchange arm of
the central bank. Substantial decentralization and
increased flexibility in foreign trade operations
occurred since the late 1970s. Textiles were leading
the export category. Other important exports
included petroleum and foodstuffs. Leading imports
included machinery, transport equipment,
manufactured goods, and chemicals
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P.R.C Economy In World Markets
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Japan was the dominant trading partner,
and accounted for 28.9 percent of imports
and 15.2 percent of exports in 1986. Hong
Kong was a leading market for exports (31.6
percent) but a source of only 13 percent of
imports. In 1979 the United States became
China's second largest source of imports and
in 1986 was the third largest overall trade
partner. Western Europe, particularly
the Federal Republic of Germany, was also
a major trading partner. Tourism was
encouraged and growing.
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P.R.C Economy In World Markets
- In law and economics, insurance is a form of risk management
primarily used to hedge against the risk of a contingent, uncertain
loss. Insurance is defined as the equitable transfer of the risk of a
loss, from one entity to another, in exchange for payment. An
insurer is a company selling the insurance; an insured, or
policyholder, is the person or entity buying the insurance policy. The
insurance rate is a factor used to determine the amount to be
charged for a certain amount of insurance coverage, called the
premium. Risk management, the practice of appraising and
controlling risk, has evolved as a discrete field of study and practice.
The transaction involves the insured assuming a guaranteed and
known relatively small loss in the form of payment to the insurer in
exchange for the insurer's promise to compensate (indemnify) the
insured in the case of a financial (personal) loss. The insured
receives a contract, called the insurance policy, which details the
conditions and circumstances under which the insured will be
financially compensated.
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Insurance
Insurance brokerage - Insurance brokers shop for insurance
(generally corporate property and casualty insurance) on behalf of
customers. Recently a number of websites have been created to
give consumers basic price comparisons for services such as
insurance, causing controversy within the industry.
Insurance underwriting - Personal lines insurance underwriters
actually underwrite insurance for individuals, a service still offered
primarily through agents, insurance brokers, and stock brokers.
Underwriters may also offer similar commercial lines of coverage for
businesses. Activities include insurance and annuities, life
insurance, retirement insurance, health insurance, and property &
casualty insurance.
Reinsurance - Reinsurance is insurance sold to insurers
themselves, to protect them from catastrophic losses.
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P.R.C Economical Databases
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MİSSİON AND HİSTORY:
-The CED is designed for scholars, students and those
interested in the study and development of
the economy of the People's Republic of China.
Anyone is able to add information to the platform
by submitting relevant material.
-he CED is sponsored by the Center for China Studies
in National Chengchi University, in Taiwan, and is
supported by the Taiwan Ministry of Education. The
project was launched in December 2003 and is
currently directed by Dr. Chen-yuan Tung, a
Professor at the Graduate Institute of Development
Studies, National Chengchi University.
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P.R.C Economical Databases
Currently there are ten databases:
-China Economic Literature Index Database
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-China Economic Experts Database
-China Economic Books Database
-China Economic Websites Database
-China Economic Government Reports Database
-China Economic Analysis Reports Database
-China Economic Conference Database
-China Economic Call for Papers Database
-Renminbi Database
-The OpenCourseWare (OCW) Project
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P.R.C Productions In World Market
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Energy and mineral resources
Mining resources
Heavy Industry Resources
Hydroelectric resources
Coal
Oil and Natural Gasses
Metals And Non Metals
Steel Industry Materials
Automotive Industry
Telecommunications industry
 Electronic Industry
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P.R.C Productions In World Market
Pharmaceutical industry
 Defence Industry
 Shipping Industry
 Toy Industry
 Food Industry
 Textile Industry
 Tourism
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European Union VS. P.R.C
CHİNA Statistics
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GDP$5.88 trillion (nominal: 2nd; 2010)
$10.08 trillion (PPP: 2nd; 2010)
GDP growth10.46% (major economies: 1st; 2010)
GDP per capitaL$4,283 (nominal: 95th; 2010)
$7,518 (PPP: 93th; 2010)
GDP by sector industry (46.8%), services (43.6%),
agriculture (9.6%) (2010 est.)
Inflation (CPI)4.9% (January 2011)
Gini index 41.5
Labour force 819.5 million (1st; 2009)
Labour force by occupation agriculture (39.5%), industry
(27.2%), services (33.2%) (2008)
Unemployment4.2% (July 2010)
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European Union VS. P.R.C
CHİNA MAİN INDUSTRİES
- mining and ore processing, iron, steel, aluminum,
and other metals, coal; machine building;
armaments; textiles and apparel; petroleum;
cement; chemicals; fertilizers; consumer products,
including footwear, toys, and electronics; food
processing; transportation equipment, including
automobiles, rail cars and locomotives, ships, and
aircraft; telecommunications equipment,
commercial space launch vehicles, satellites
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European Union VS. P.R.C
ExportsUS$1.506 trillion (2010)
Export goodselectrical and other machinery, including
data processing equipment, apparel, textiles, iron and
steel, optical and medical equipment
Main export partnersUS 20.03%, Hong Kong 12.03%,
Japan 8.32%, South Korea 4.55%, Germany 4.27% (2009)
ImportsUS$1.307 trillion (2010)
Import goodselectrical and other machinery, oil and
mineral fuels, optical and medical equipment, metal
ores, plastics, organic chemicals
Main import partnersJapan 12.27%, Hong Kong 10.06%,
South Korea 9.04%, US 7.66%, Taiwan 6.84%, Germany
5.54% (2009)
FDI stock$100 billion (2010)
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Gross external debt$406.6 billion (22nd; 2010)
European Union VS. P.R.C
European Union Statistics
GDP (PPP)2010 (IMF) estimate - Total$15.170 trillion Per capitaL$30,388
GDP (nominal)2010 (IMF) estimate - Total$16.282
trillion - Per capitaL$32,615
Gini (2009)30.7 (EU25) (High)
HDI (2007)0.937 (High)
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European Union VS. P.R.C
European Union Main Industries
-Machine Industry
-Plane Industry
-Automobile Industry
-Textile Industry
-Food Industry
-Toy Industry
-Defence Industry
-Oil and Natural Gasses
-Coal
-Iron Industries
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European Union VS. P.R.C
European Union Main Industries
-Medical Industry
-Telecomminication Industry
-Ship Industry
-Architecture
-Building Industry
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