Chinese Economy has flourished throughout history, booming at explicit growth.
China now is the world’s second-largest Economy in GDP-PPP followed by the United States and the third-largest economy by nominal GDP in 2017. The economy focuses on manufacturing & services.
Exports (’16): $2.09 trillion ∼(India’s GDP) being 1st largest Exporter in the world.
Imports(’16): $1.58 trillion being 2nd largest import country followed by the US.
Sectoral contribution to GDP,
Chinese biggest E-commerce company by sales, Alibaba has a net worth of $480 billion.
On Nov 10, 2017, Alibaba observed “Single’s Day“ where sales had hit a new record of $25.3 billion, more than 40 percent higher than sales on Singles Day 2016- $15 billion (revenue of TCS) – Yes, legit Jaw drop! Singles Day is now inextricably linked with Alibaba, the Chinese e-commerce leviathan.
In addition, Lenovo & Xiomi being their largest PC makers & phone manufacturer.
China plays an important role in world’s economy, any slowdown leads to descending impact to the latter. Chile being the major exporter of Copper to China, saw an adverse impact on its Economy when economic slowdown of China led to the lower import of Copper.
THE CHINESE DREAM: Xi Jinping’s ‘Two 100’s dream
A term popularised after 2013 within Chinese socialist thought that describes a set of personal and national ideals.
- First 100: To convert China to moderately well-off society by 2021
- 2021 marks the 100th anniversary of Communist party of China.
- Second 100: Make China fully developed nation by 2049
- 2049 marks the 100th anniversary of the foundation of People Republic of China(PRC)
The Chinese Dream has four parts:
- Strong China (economically, politically, diplomatically, scientifically, militarily);
- Civilized China (equity and fairness, rich culture, high morals);
- Harmonious China (amity among social classes);
- Beautiful China (healthy environment, low pollution)
One Road One Belt (OBOR):
In 2013, improve communication & co-operation between 60 countries.
Connect China with Eurasia-
1) Land-based: Silk Road Economic Belt
2) Sea-based: Maritime Silk Road
China-Pakistan Economic Corridor (CPEC) :
- Part of OBOR. Gives China access to West-Asia & Africa.
- Built Economic corridor connecting Pakistan Port city of Karachi & Gwadar to Western China. RAIL network- Pakistan Kashger to China.
- Pakistan often loses 1% GDP due to energy shortage. For which China builts infrastructure highways, railways, port & electricity plants.This adds 2% contribution to Pakistan’s GDP.
- Oil gas comes from West-Asia (Nigeria, Angola) to Gwadar by road. Pipeline- Pakistan through PoK & move to Karokaram highway to China.
With its high spiking growth and ambitious plans, data provided by the Chinese government is not reliable for many reasons, some of them are:
- Domestic sales rising in China: If a mouse is manufactured & moved out of the factory, its regarded as ‘sale’ in China, whereas in other countries- when the mouse is purchased by the customer its ‘sales’.
Here’s where Chinese play win-win by shooting up its Domestic sales figures!
- Employment rate: If a person is fired, Chinese government treats him as unemployed. But, if the person resigns, he is still not counted unemployed.
Corporates, Industries force people to resign than firing to keep up the employment figures to boost up their GDP.
- Cybernet control: Protected by firewall called “Great Firewall of China” Chinese control the Cybernet denying freedom to its citizens. They cannot search ‘Democracy’, ‘Dalai Lama’ (for speaking against their socialist nature), ‘July 4th’ and many more.
No access to Facebook, Renren.com is their leading social network.
No Twitter, but Vevo is allowed.
- Yuan valuation:
The government of China popped up Yuan value from its Market value of
1$= 4 Yuan to 1$= 6.8 Yuan
China has emerged as an Economic Superpower and is also heading in Global leadership with its uprising plans.