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Will China become the next superpower?

4/18/12

Super power – explained. Econo Eco mic nom ic Cultur e Politic al 4/18/12 Militar .

International Monetary Fund now says that in 2016 China will become world’s largest economy. for 2millions patents by 2015 and invest in R&D at 2.A Quick glance at China  In 2010 China overtook Japan and became world’s 2nd largest economy.5% of GDP same as that of USA.  The Plans 4/18/12 .

How USA became Super power? 4/18/12 .

A Macro view of China GDP • Banking Systems • Currency • International Trade • Employment and Inflation • 4/18/12 .

GDP 4/18/12 .

International trade and BOP 4/18/12 .

Tightly managed exchange rate. but there are still capital flow restrictions extensive capital controls in place. Low inflation and sustainable levels of Lower ratio of explicit public debt to GDP than most major reserve Flexible exchange rate Financial market development Macroeconomi c policies 4/18/12 . Broad. and their external value which will become increasingly hard is market determined.Currency The renminbi’s prospects as a reserve currency will be Requirement influenced by these criteria: for Reserve China’s Current Position Factor Rating Economic size Open capital account Currency An important crucial factor but notAccounts for 10 percent of world GDP and 9 percent of world trade. deep and liquid Relatively shallow and financial markets with a underdeveloped government and wide array of financial corporate bond markets. to manage as the capital account becomes more open. Easily tradable in global Has become increasingly open in de financial markets with no facto terms. assets denominated in local currency. Generally traded freely.

  The renminbi will be included in the basket of currencies that make up the International Monetary Fund’s Special Drawing Rights basket 4/18/12 .Currency We anticipate the following outcomes in the next five years: China’s medium-term objective is an open capital account but with numerous “soft” controls.

Inflation and Unemployment 4/18/12 .

So will CHINA be a superpower ? 4/18/12 .

Ø Reducing its high domestic savings rate and correspondingly low domestic demand adequate job growth for tens of millions of migrants and new entrants to the work force corruption and other economic crimes environmental damage Ø Sustaining Ø Reducing Ø Containing 4/18/12 .Current Major challenges.

favor GDP 10 trillions GDP growth rate 9% World’s largest currency reserve 3 trillions World’s largest military power World’s largest manpower One of the biggest Exporter of Goods 4/18/12 Ever Growing population Per capita $6240 i.e.Comparasion In China’s But. . 1/8th of America Corruption and Pollution Huge disparity between poor and rich people percentage Lag in Banking System Not a social friendly country..

Final take. kan qing kuang 看情况 4/18/12 .

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