1. 31 October 2017 by Sigrid B. Wangsness
CHINA’S ECONOMY
31 October 2017 by
Sigrid B. Wangsness

2. 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

3. 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)

4. 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

5. 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

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

7. 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

8. 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%)

9. China’s Current Economy
Current-account balance: +$155.3bn (Q2) % 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 :
Steady (slowing?) economic pace –but is it sustainable? And can we trust the numbers?

10. 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

11. 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?

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

13. 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

14. 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?

15. 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

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