The Rise of China

I. From Communist
Disasters to Capitalist
Boom
II. China’s Economic
Performance
III. Economic Implications
IV. Strategic Implications
From Communist Disasters
to Capitalist Boom
z Victory in the Civil War
z The Great Leap Forward
z The Cultural Revolution
z Poverty and Starvation Mao’s shining light
trashes the economy…
z Deng Xiaoping and
Economic Reforms
z Tiananmen Square (1989)

…Deng sets the economy free

(but not the people)
II. China’s Economic Performance
US-China Economic Statistics
CHINA UNITED STATES
Population (2003) 1.3 billion 295 billion
GDP (Total) $1.83 trillion $12.37 trillion
GDP (per capita) $6,200 $41,800
Growth (2005) 9.2% 3.5%
Labor Force
Agriculture 49% 1%
Manufacturing 22% 20.7%
Services 29% 78.3%
Major Export US (21.1%) Canada (23%)
Partners Hong Kong (17%) Mexico (13.6%)
Japan (12.4%) Japan (6.7%)
South Korea (4.7%) United Kingdom (4.4%)
Germany (4%) China (4.3%)
Major Import Japan (16.8%) Canada (17%)
Partners Taiwan (11.4%) China (13.8%)
South Korea (11.1%) Mexico (10.3%)
United States (8.1%) Japan (8.7%)
Germany (5.4%) Germany (5.2%)
Economic Dead Weight
z “Chinese”
Industry???
z “The
Assembly
Line of the
World”