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China has a population of over 1

billions. (1.3 billions population)

However, despite the fact that cities
such as Chongqing, Shanghai and
Beijing had populations exceeding
10 million, and that over 130 Chinese
cities had populations in excess of 1
million, the majority of China's
population still lived in rural settings
China's economy had remained
isolated from the founding of the
People's Republic of China (PRC) in
1949 until the late 1970s
Chinas economic situation was
increased since they joined WTO.
China had been the second-largest
recipient of FDI worldwide
Foreign invested enterprises (FIEs)
had been a major driving force
behind China's trade growth. In 2003,
FIEs accounted for 57.0% of China's
total exports and 57.8% of China's
total import.
China is worlds largest textile exporters, maintaining global market share of 26%
in 2003 and accessed WTO
China is ranked as second most attractive FDI destination after Luxembourg in
2003, with the value of inward FDI of 53.5 billion US$
China acts as both investor and recipient of FDI
Exhibit 14 shows that China has high correlations with Malaysia, Thailand, and
Philippines where China imported electronics and machinery parts from these
countries, assembled them, and re-exported them.
This relationship does not show in relationship of China-Indonesia and China
China is a competitor to Taiwan and
South Korea in lower-value added
manufacturing such as footwear and
Partner in Regional
Country Market Complementor Competitor Development Partner

Hong Kong X X X

Taiwan X X

Japan X X

S. Korea X X

Malaysia X X X X

Indonesia X X X X

Thailand X X X X

Philippines X X X X

Singapore X X

Russia X X X
Electronics (8%) Agriculture & food (31%)
Mercenary & vehicles (11%) Instruments (1%)
Metals (5%) Plastic & rubber (6%)
Chemical (12%) Textile (4%)
Mineral and fuels (22%)

Compared with other nations, Indonesia was ranked as the

second lowest. The lowest was Australia.
Crude petroleum & products (7.2 billion USD)
Textile & garment (7.2 billion USD)
Liquefied natural gas (6.5 billion USD)
Wood & products (3.2 billion USD)
Textiles & garments (7.1 billion USD)

Chinas export value to Indonesia was second lowest among

other countries. The lowest was Hongkong.
In 2003, there was no investation
from China to Indonesia.
Exhibit 12
Chinas FDI to Indonesia in $27 million
It is the lowest compared to Chinas investment to other nations in the list
In 2003, Indonesias export to China is 7.5% and it contributes to Chinas growth
rate by 27% and Chinas GDP by 2.1%, which means Indonesias exports to China
does not have a big contribution towards Chinas economic growth
The value of IDR compared to USD dropped
SMEs are closing due to their inability to compete with manufacturers from China
International trading relationship between China and Indonesia are in good term