1. China: Growth and Opportunity
Globalization and the Ever Shrinking World

2. Questions To Ponder
As we discuss China, and as you watch part of Tank Man, please think about the following questions:
How has China changed over the last 35years?
What are the positive aspects of this change?
What are the negative aspects of this change?
What risks are there in the system that has been set up?

3. History of China Glory Years Rejection of England/Outside World
Opium War
Japan China
Civil Unrest and Civil War
Mao and Communism
Great Leap and Cultural Revolution
Mao’s Death

4. China 1978: Summary Stats Average Schooling: 4 years
Life Expectancy: 68 years
Urban Population: 17.8%
GDP per capita: approximately 2000 Yuan (at today’s exchange rate that is equivalent to about $300 per person)
Source: Dr Juefee Wang; lecture

5. Reforms Abolish Communes Recognition of Knowledge and Intellectuals
Restoration of Entrance Exams for Colleges
Reopening of Graduate Schools
People Responsible for Production in Economy

6. Agreement Between Government and People
Communist Government Remains
Capitalist Economic System

7. Slow Change Change was slow at first: Economy slowly getting better;
Government still very totalitarian

8. China
FRONTLINE: the tank man | PBS

9. China Today
Section Five of the Computer Information Network and Internet Security, Protection, and Management Regulations approved by the State Council on 11 December 1997 states the following:
No unit or individual may use the Internet to create, replicate, retrieve, or transmit the following kinds of information:
Inciting to resist or breaking the Constitution or laws or the implementation of administrative regulations;
Inciting to overthrow the government or the socialist system;
Inciting division of the country, harming national unification;
Inciting hatred or discrimination among nationalities or harming the unity of the nationalities;
Making falsehoods or distorting the truth, spreading rumors, destroying the order of society;
Promoting feudal superstitions, sexually suggestive material, gambling, violence, murder;
Terrorism or inciting others to criminal activity; openly insulting other people or distorting the truth to slander people;
Injuring the reputation of state organizations;
Other activities against the Constitution, laws or administrative regulations.[14]
Source:

10. Agreement (?) Between US and China
China keeps their currency value low
China makes products
US buys products
China takes the money from this and lends it back to us to help us fund our deficit spending- currently we are in debt to China approximately $1.3 trillion.

11. Economic Growth in China Source: Chinability.com% % % % % % % % % %
2012: 7.8%
2013: 7.7%
2014: 7.3% Estimated
2015: 6.9% Estimated
2016: 6.6% Estimated

12. Economic Growth in China
1% GDP growth means approximately 1,000,000 new jobs. According to Wang Juefei the breakeven point for China is approximately 8% growth per year. Below this figure, the workers moving from the farms to the city will not find jobs.

13. Speed YouTube - Speed (1994) Theatrical Trailer China is that bus!
“It has to grow at a minimum of 8% per year or it will explode because it will have so much unemployment and discontent, the population will erupt.”
Nayan Chanda, former Editor of the Far Eastern Economic Review

14. Changes in China GDP per capita in China (source CIA Factbook):
After years of double digit growth in GDP, the per capita GDP in China is approximately $15,400.
US GDP per capita in 2016 was $56,300 (CIA Factbook)

15. Education In China Compulsory education ages 6-15 (Grades 1-9)
Currently allocate 2% of GDP to education; in the US we allocate approximately 5.5%

16. China Today 1978 2016 Average Schooling 4 years 14 years
Life Expectancy 68
75.5
Labor Force
400 million
806million
Urban Population
17.8%
55.6%
GDP Per Capita (US $’s)
290
$15,400

17. China and the US US 2016 China 2016 Average Schooling 17 years
Life Expectancy
79.8
75.5
Labor Force
158.6 million
806 million
Urban Population
81.6%
55.6%
GDP Per Capita (US $’s)
$57,300
$15,400
GDP
$18.56 Trillion
$11.4 Trillion

18. Sources
Information on the previous slide is from Dr Wang Juefei, Professor at UVM, and the CIA FactBook.

19. Relationship US and China
Over the past years, there has been a strong economic tie between the US and China.
This has worked to the advantage of each country- China growth of Middle Class; US access to cheaper goods
Potential for Conflict: Political goals for China in S. China Sea

20. Questions To Ponder How has China changed over the last 30 years?
What are the advantages and disadvantages to the changes in China?
Is this growth sustainable?
What risks are there in the current system?
What would create a showdown between the Government and the People?
Who would win a showdown between the government and the people?