31 October 2017 by Sigrid B. Wangsness CHINA’S ECONOMY 31 October 2017 by Sigrid B. Wangsness

I. The Old China: Mao’s China 1949-1976 Official name since 1949? Communism Workers in the cities: in state-owned factories or public offices Workers in the country: on state-owned collective farms

The Old China: Mao’s China 1949-1976 Clothing choice: blue or grey Mao suits The Cultural Revolution: persecution, brutality Severe poverty - starvation Heavily subsidized housing, public services (health care)

II. The New China: Early 1980s - today Population? Measures to prevent over-population? More than 400 million people lifted out of poverty; more than 600m now belong to the Chinese middle class Increasing urbanization, but around 50% still live in the countryside

The New China: Early 1980s - today Early 1980s: Introduction of market reforms (Deng Xiaoping) From central planning to market-led capitalism 2001: Member of the WTO

III. China’s Current Economy Compendium, pp.119-121: The world’s second largest economy. When will it become the largest? The world’s biggest manufacturer Shengshi – age of prosperity Power and pride

China’s Current Economy What do you know about China’s banking system? Any bad debt in China? Steady growth and job creation necessary to prevent social unrest

China’s Current Economy Economic indicators for 2017: GDP growth: 6.8% (Q2) Est. 2017: 6.8% Industrial production: 6.6% (Sep.) (vs. USA: 1.6%) Inflation: 1.6% (Sep.) (2017: 1.7%) Unemployment: 4.0% (Q2) (vs. USA: 4.2%)

China’s Current Economy Current-account balance: +$155.3bn (Q2) +1.4% of GDP (vs. USA:- $460.9 = -2.5% of GDP) Budget balance: -3.9% of GDP (vs. USA: -3.4%) Speedy recovery from global financial crisis Compendium, pp.123-125: Steady (slowing?) economic pace –but is it sustainable? And can we trust the numbers?

China’s Current Economy Domestic security – anxious state Has globalisation led to political freedom? (e.g. The Nobel Peace Prize) Change of leadership Xi Jinping’s unrivalled position: China’s most powerful leader since Mao

IV. The Chinese Dream What is Xi Jinping’s dream? (Compendium, p. 122) Are there indications that Xi Jinping’s slogan is a deliberate reference to “the American Dream”? Which aspect is NOT part of the dream? According to the article, what are the main dangers of Xi Jinping’s dream?

China’s Domestic Challenges China’s other growing domestic problems: Pollution Huge wealth gap Health care Human rights Corruption?

V. China As a Global Power The world’s largest new car market and automobile producer The world’s largest oil importer Chinese companies are expanding Huge investments in fixed assets: factories, equipment, property, infrastructure

China As a Global Power Focus on capturing markets abroad and obtaining natural resources Forming alliances with countries such as Venezuela, Iran and Sudan Africa and Latin America: Taking advantage of weak economies to get hold of valuable assets?

China As a Global Power The IMF, the WTO, the summit on climate change, the World Economic Forum – examples of increasing Chinese dominance Compendium, p. 128: China and the USA China and Japan China and the EU

VI. Chinese Business Culture Outline the main aspects of the Chinese business culture as Richard D. Lewis portrays it (Compendium, pp. 19-35) Hierarchy, harmony and face-saving Communication: reserved, formal, subtle and indirect