1. The Changing World Order
The Emergence of
China and India

2. China and India Geographically close
Together, represent 1/3 of the world’s population
Highest potential for growth in the next 50 years
Economies fuelled by:
Massive populations
Huge domestic markets
Cheap labor
Investment-friendly government policies

3. Two of the fastest growing major economies in the world

5. The Economies of China and India
Annual growth forecasts for the foreseeable future:
China 8~10 %
India 8%.
Projections for China and India combined:
10.5% share of GDP at $6.3 trillion by the year 2020
Will make up 40% of the world’s total population
Consume 50% of its natural resources
Become the largest exporter of manufactured goods and services

6. CHINA’S GROWTH DRIVEN BY:
- Foreign direct Investment (FDI)
- Exports
- Large-scale manufacturing
- Economic Model: State Capitalism

7. INDIA’S GROWTH DRIVEN BY: - Consumption - Vibrant capital markets - World-class IT and services - Economic Model: Private Enterprise

8. CHINA’S ECONOMIC STRENGTHS
Manufacturing
Infrastructure

9. INDIA’S ECONOMIC STRENGTHS
Services
Information Technology

13. Inter-country trade
US$270 million
2010 (estimate) US$60 billion

14. The Future
“By the year 2050, the E7, the world’s seven emerging economies – China, India, Russia, Brazil, Indonesia, Mexico and Turkey – will overtake the economies of the G7 – US, Japan, Germany, UK, France, Italy and Canada.
In this scenario, China and India will lead the pack... [and]
Chindia will become an economic superpower to be reckoned with.”
Ref: Chase Commercial Banking

15. Discussion Questions Is the term “Chindia” a misnomer? Why or why not?
What has been the United State’s reaction to a growing China and India?
What do you know about the “currency war” between the US and China?