STIMULUS IN CHINA, OPPORTUNITY TO THE USA

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STIMULUS IN CHINA, OPPORTUNITY TO THE USA 

• Presented by Richard Koo, PhD, C.P.A.

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Agenda

• Economic Crisis
• Actions from China
• Actions from the United States
• Opportunities for the United States
• Conclusion

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ECONOMICS CRISIS

• To the United States
• Federal policy, federal reserve, FDIC, etc
• Customers confidence, unemployment, etc
• Real estate, stock market, and inventory level
• Credit and interest rate, deficit, taxation, etc

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ECONOMICS CRISIS

• To China
• Stimulus package - Government spending and
  tax-cut
• Unemployment and stability
• Growth rate, reserve and government power
• Domestic spending
• Export decreasing

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ACTIONS FROM CHINA

• 1. Spending
• Government spending
• Domestic spending
• farmers stimulus package
• Mass public construction structure
• High-technology, fixed assets, and ecology

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ACTIONS FROM CHINA

• 2. Investment
• Global investment
• from real estate to industries
• Foreign investment
• intensive labor, high-technology, and R D
• Financial products and vision expanding 

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ACTIONS FROM CHINA

• 3. Service Industry
• Finance and insurance industries
• Contract and consulting services
• Tourism, pharmaceutical, high-technology industry

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ACTIONS FROM CHINA

• 4. Tax Reduction Package
• Turnover taxes reform
• Unification of enterprise income tax
• Central via local government more practical and
  flexibility

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ACTION FROM THE UNITED STATES

• Stimulus package
• Global leadership and protectionism
• Tax reform and auditing
• Education and R D

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OPPORTUNITY FOR UNITED STATES

• Consumption
• high-technical equipment, R D, Chinas tax
  benefits
• Investment
• financial products and service industry
• Cost reduction
• Chinas domestic market and purchasing power

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CONCLUSION

• Globalization - co-operation, competition and,
  mutual benefit
• Progress takes time
• Head down the road to recovery

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THE END