CHINA

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CHINA
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Six Factors Driving Chinas Growth

• Privatization profit motive
• - decline of SOE role in economy
• Urbanization
• - by 2020 60 of population in cities
• - labor low cost, increasingly skilled
• Trade
• - from none to 4 worldwide
• Inward Foreign Direct Investment
• - from none to 2 worldwide
• Nationalism
• - China as Number 1, 3 in space
• Consumerism
• - housing and commercial real estate boom
• - cars, latest tech, cell phones, laptops

• Source Prof. Joseph A. Massey, The Chinese
  Dragon Wakes American Institute for International
  Steel Gulf Region Seminar September 27, 2004
  Houston, Texas Center for International
  BusinessTuck School of Business at Dartmouth

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Chinas Inward and Outward FDI

• Every week, more than 1 billion in FDI flows
  into China
• 57 B in 2003 (second only to USA)
• But, Chinas outward FDI also growing
• 2.5 B in 2002, 35 B over the past two decades
• Most going to ASEAN countries
• Also increasingly coming to USA - Haier an
  example

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Chinas Astonishing Trade Performance

• In 2003, China accounted for more than 60 of the
  growth in world trade
• Growth in foreign trade 15 average annually
  since 1978
• 2003 - worlds 4th largest exporter 438b
• after US, Germany and Japan
• 2003 - worlds 6th largest importer 412b
• will soon exceed Japan, UK and France
• - Chinas imports surged 40 in 2003
• - China passed USA as top export market for
  Japan

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China Impact Commodities

• Chinese economys share of global output doubled
  to 4 in last decade
• But China consumes
• 7 of worlds oil supply
• 25 of aluminum
• 27 of steel products
• 30 of iron ore output
• 31 of coal

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    To date, there are 49 national-level ETDZ,
among which, eastern coastal regions 27, Middle
West regions 22.
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II. The FTZs facilitate the import and export. In
2001, the total volume of import and export
reached 21.388 billion UD dollars, occupying 4.2
of the national total value, of which, the import
12.9 billion USD, the export 8.48 billion USD,
increased by 11 and 20.11 than the last year.
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The Border Economic Cooperative Areas made good
progress In 2001, the 14 BECAs developed 32
square kilometers land ,attracted foreign
investment of 85 billion yuan, more than 3000
enterprises, among which over 400 foreign
enterprises and provided 120,000 job
opportunities.