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Hailey College of Commerce

University of Punjab
People’s Republic of China
Country General Profile

• Capital: Beijing

• Major Language: Mandarin Chinese

• Major Religions: Buddhism, Christianity,


Islam, Taoism
• Population: 1.34 billion (UN, 2009)
Geography
• Area: 9.6 million sq km
• Location:
Usually described as part of East Asia.

• Land Boundaries:
China has a total of 22,117 kilometers of land
boundaries with 14 other nations. These borders
include: Afghanistan , Bhutan , Burma , India ,
Kazakhstan , North Korea, Kyrgyzstan, Laos ,
Mongolia , Nepal, Pakistan , Russia, Tajikistan, and
Vietnam.
Economic Profile
• Budget:(2009)
Revenues: $847.8billion
Expenditures: $861.6 billion.

• GDP (2009): $4.222 trillion (exchange rate-


based).

• Per capita Income (2009): $6,000 per


annum.
GDP Growth:
• GDP real growth rate (2009): 8.9%.
• Inflation Rate (Current): 0.6%
• Currency: Exchange Rate:
1Rmb (Yuan): 0.146479 U.S.$

• Fiscal Year: Calendar Year.

• Credit Rating:
By standards and Poor’s:
Long-term: A+
Short-term: A-1+
Foreign Currency Rating : BBB+
• Unemployment Rate:
4%

• Population below Poverty Line:


8%
Imports And Exports
• Exports:
$1.435 trillion
• Imports:
$1.074 trillion

• Main Imports:
cloves, Nutmeg, elephant tusks,
rhinoceros horns, pepper.
• Main Exports:
ginger, cinnamon, silk, copper, silver,
textile, amber, toys, electronics.
Economy Matters
• After more than a quarter century of reform
and opening to outside world, by 2005
china’s economy had become the 2nd largest
in the world after U.S. and in 2004 it already
became the 3rd largest trading nation in the
world.
• China has a goal of quadrupling the GDP by
2020 and more than doubling the per capita
income.
• China is now cite on two main trends that
effect the China’s market economy and
Future Development that are world multi
polarization and regional integration.

• In eleventh five-year plan(2006-2010),


china emphasizes a shift from extensive to
intensive growth in order to meet demands
for improved economic returns.
• This plan also includes the conservation of
resources including 20% reduction in
energy consumption by 2010.

• Better coordination of urban and rural


development and regional development
emphasized in the new plan.
Economic Crisis In China

• After years of boom, China's GDP growth


has now slowed for the last two years. The
country is a huge consumer of raw
materials, and now the global mining giant
Rio Tinto caused share prices in the
sector to slump by warning that demand
from China was slowing.
• Huainan Zhao, a banking expert at the Cass
Business School, in London, said: "The problem is
that China's economic growth is slowing down
when it is most needed. But I am afraid that the
world will have to live with a slowing Chinese
economy.
• The IMF forecasted that the Chinese GDP will
decline from 12% last tow year to about 8.9% this
year."
• One of the most worrying aspects for the Chinese
leadership is that net exports contributed only 1.2
percentage points to the country's total GDP
growth over the last nine months, down from 2.4
percentage points over the same period of 2007.
• China's toy making industry is under
particular pressure, following a series of
safety scares relating to manufacturing
processes last year. Last week more than
6,000 employees lost their jobs when
Smart Union, a major toy manufacturer in
Dongguan, closed. It blamed a fall in
demand from the US.
• Davos said, In China there was rising
unemployment in rural areas and
"downward pressure on economic growth".
But he added that China's economy was in
good shape "on the whole".
• Mr. Wen said that among the reasons
behind the current global downturn were
"inappropriate macro economic policies in
some economies, characterized by low
savings rate and high consumption".
• He also pointed to a "failure of financial
supervision and regulation to keep up with
innovation which allowed financial
derivatives to spread".

• A rescue plan for the real estate sector is


also in the works. The Beijing leadership
has also vowed to spend more on welfare
and construction.
Regards.