Affective Issues on China Economy

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Description:

China's economic growth story seems never-ending. It is driven by three things: more capital, more labour and more productivity. Above all, Productivity is everything that allows more output to be produced with the same inputs. China's economy has relied heavily on capital accumulation over the last 20 years, but in the future productivity growth will become more important.

Enablers:

- Technology imports
- Lots of 'learning by doing'
- Better education
- More efficient financial institutions
- More rule of law
- Better infrastructure

Inhibitors:

Gradual falling of China’s natural growth rate, from around 9-10% a year over the first two decades of reform, to 7-8% during the 2000-10 period, and to 5-7% over the following decade.

Paradigms:

Serious structural reforms such as privatization, liberalization of the financial sector, investment in education and supporting the indigenous private sector, are being preceded.

Experts:

WEFA, National Bureau of Statistics of China

Timing:

  • China's open-door policy was initiated in late 1978.
  • China and the U.S set the diplomatic relationship in 1979.
  • China set up Shenzhen special economic zone in 1980.
  • China joint into the WTO on Dec.11th,2001.
  • China will cancel the tariff for telecommunication equipments before 2005.
  • The 2008 Olympic Games will be held in Beijing.
  • The 2010 World Exposition will be held in Shanghai.

Web Resources:

http://www.xinhau.com/contents/complete40.php
World Bank Report

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