Disambiguate China

1
Disambiguate China

• Huang Zhenhua
• DFK International Annual Conference
• The Four Seasons Hotel, Shanghai
• July 15, 2004

2
Disambiguate China

• Introduction
• How is Chinas economy?
• How seriously China has committed itself to
  market economy?
• Has the new generation leadership won the support
  of the people?
• Opportunities vs. cautions
• Conclusion

3
Introduction

• Why I choose this topic
• Mutual understanding is the key
• Possible reaction after getting contradictory
  reports

4
How is Chinas economy?

• GDP for 2003 RMB11.6694 trillion yuan, a 9.1
  growth
• Total trade volume for 2003 US851.2 billion, an
  increase of 37.1.
• 41,081 foreign-invested enterprises approved in
  2003, up 20.2 with a contractual value of
  US115.1 billion, up 39 and actual utilization
  of US53.5 billion, up 1.4

5
How is Chinas economy?

• For the first quarter of this year
• 1) The economy continued with fairly rapid
  development with obvious improvement of its
  vigor.
• 2) Economic operation has won good benefits,
  with a fairly rapid income growth.
• 3) A steady growth in consumption has been
  achieved, with ample supply on the market.

6
How is Chinas economy?

• 4) Foreign trade has been growing fast,
  with a fairly high level of absorption of foreign
  direct investment.
• 5) The increase of the prices for consumer
  goods has been mild, still at the controllable
  range.
• 6) The farmers initiative has increased and
  agricultural production has shown good
  improvement.
• 7) The capital market is activated, with the
  pressure for the appreciation of RMB lessened.

7
How is Chinas economy?

• Major problems
• 1) Agriculture, rural development, living
  standard of the rural residents
• 2) Employment
• 3) Investment in fixed assets increasing too
  rapidly with redundant construction projects,
  causing bottleneck restrictions in materials,
  energy and transportation
•  

8
Chinas commitment to market economy

• Its WTO accession
• Major amendments to the Constitution
• The revised Foreign Trade Law
• The Bankruptcy Law under deliberation

9
The new leadership

• Peaceful transition
• Stood the test of SARS
• People-oriented
• Scientific development
• International contact
• Peoples reaction
• Gradual change

10
Opportunities vs. cautions

• New phase of reform and opening up
• Develop the western regions
• 2008 Olympics
• 2010 Shanghai International Expo
• Some headaches

11
Conclusion

• Mutual understanding is the key
• The vision of DFK international

12
Thank you