The Chinese president is looking to boost consumption and import as part of efforts to restructure its economy (Hu Looks to Boost China's Consumption, Imports, (April 15, 2011). The Chinese energy consumption has been predicted to soar to 68% higher than that of the USA by the year 2035(China, India to lead energy consumption, (September 20, 2011). Investment spending is also set to increase from $12,633 billion (2011, 48% of GDP) to $29,628 billion by 2030 (38% of GDP) (CHINA - Gross fixed investment (% of GDP) from 2011 to 2030, EIU Country Data). In 2006 China had a rating of 5.00 and was seen ranked at 101st in terms of the degree of economic freedom as measured
Inflation in China accelerated in november, as economic growth picked up and food prices rose. Chinese consumers paid 2% more for good and services in november then they did a year ago, the government's national bureau statistics reported on a Sunday. While that up from a 1.7% annual increase in october, it nevertheless represents tame inflation for the world's second largest economy. A year ago the country was experiencing an annual inflation rate at 4%. the Chinese government prefers to keep its annual inflation rate below 4%- a level it seems as consistent with health economic growth and consumer demand. The inflation rate averaged 4.23 percent reaching an all time high of 27.70 percent in october of 1994 and a record low of -2.20 percent in march of 1999. in china the most important components of the CPI basket are food at 31.8 percent of total weight and residence at 17.2 percent. Recreation, education and culture articles account for 13.8 percent; transportation and communication for 10 percent, healthcare and personal articles at 9.6 percent, clothing at 8.5 percent; household facilities, articles and services for 5.6 percent; tobacco liquor and articles for the remaining 3.5 percent. The CPI basket is reviewed every five years on the basis of household surveys. Revisions reflect new spending patterns and economic development, according to the nation bureau of statistics.
High government intervention has also had positive effects on China’s economy. Since the Global Financial Crisis of 2007-08, China has become increasingly
The rise in China from a poor, stagnant country to a major economic power within a time span of twenty-eight years is often described by analysts as one of the greatest success stories in these present times. With China receiving an increase in the amount of trade business from many countries around the world, they may soon be a major competitor to surpass the U.S. China became the second largest economy, last year, overtaking Japan which had held that position since 1968 (Gallup). China could become the world’s largest economy in decades.
The fastest growing sectors of China’s economy are healthcare, technology, education, and entertainment. This is attributed to urban households spending 40% of their consumption on these services including travel an
Over the last few decades while China’s population growth rate has decreased, its GDP has increased. “China’s GDP per capita for the period 1952 to 2008 grew at an average annual rate of 5.58%.” (Yao) Furthermore, during the same time
These effective strategies helped Hong Kong overcome the financial crisis. All these facts fully demonstrated that China is a responsible big country. After the Asia financial crisis, the importance of China's economy has been brought into focus; China's neighboring countries have begun to recognize the influence of the Renminbi.
Can China continue to grow? China has been heavy on government capital spending and exports. China’s capital spending is usually under infrastructure such as: roads and bridges, and they have been doing some testing to see where 3D printing can help continue to drive the economy. China has been testing the use of 3D printing for houses and other infrastructure as a possible avenue to continue having capital spending as a powerful driver in the Chinese economy. Exports are another vast driver in the Chinese’s economy where mass production is a part of total exports. Future 3d printing can be seen as a strength with products that are custom and more complex. China is trying to move towards an economy driven by consumer spending. Fine-tuning an economy is very difficult. As you can see from the chart, Chinese growth has slowed down very significantly. Still the levels are higher than many other countries, but the slowdown is clear and the transition to that slow down can be seen as problematic. The blue line is related to the value of the yen and that has weakened in the last two years as well (Mitchell, 2015 para. 13). This has happened because China has allowed its currency to appreciate. That can be related to Chinese competiveness dropping for the last 2 years. This could have bad results for the Chinese economy.
top 5 and 10% of earners in China accounted for 19.8% and 31.9% of the
Since the financial tsunami and the bankruptcy of Lehman’s Brother in September 2008, the world’s economy took a deep plunge and the Chinese economy is no exception. In the wake of the global financial crisis, The Economist (2008) reported that China’s real GDP growth slowed to 9 percent in the third quarter of 2008 and export growth slowed to 21.1%. It was, in fact, well below analyst expectations and recent
The economic growth slowed down in the past 3 years. The GDP growth decreased from 7.76% in 2013 to 6.9% in 2015. At the same time, as a big contributor to the total GDP, the proportion of the second industry decrease, while the tertiary industry replaced the first place and accounted for 50.5% (National Bureau of Statistics of China 2015), indicating that China is trying to change its economic structure. Besides, the CPI figure shows a steady decrease, while the disposal income gradually rises. In brief, the performance of the economic indicators shows that the economy of China is slowing down.
One of China’s main economic objectives is to move from export-led growth to a more sustainable driven growth - domestic consumption. In order to achieve this, the government has made many changes in the economic regulation, especially the monetary policy. The monetary policy is mainly referred to decisions of the money supply’s size and growth rate within the economy, that are made by the central bank or other regulatory authorities. In March 2016, Chinese bank’s reserve requirement has dropped another 0.5%