Jiang Zemin’s ________Represents

1. Jiang Zemin’s ________Represents (1) the most advanced forces of production[Read: allow entrepreneurs and professionals to become Party members] (2) the most advanced forces of culture (3) the fundamental interests of the broadest number of people (including c___________s GULP!)

2. October, 2006: The annual meeting of the ruling party’s Central Committee formally adopted President Hu Jintao’s proposal to “build a harmonious socialist society,” a move some analysts said was one of most decisive shifts in the party’s thinking since Deng Xiaoping accelerated the push for high growth rates in the early 1990’s. The leadership declared that a range of social concerns, including the surging wealth gap, corruption, pollution and access to education and medical care, must be placed on a par with economic growth in party theory and government policy. . . . The catch phrase covers a range of policies intended to restore a balance between the country’s thriving market economy and its neglected socialist ideology, primarily by paying greater attention to peasants and migrant workers who have benefited much less than the white-collar elite in China’s long economic boom. President Hu Jintao, left, and Premier Wen Jiabao have called for "harmonious society" and "social stability."Washington Post Hu’s “______________s Society”

3. RESULTS Well, uhh did you get this one yet?

4. Results: Poverty rate overall has: But even as officials trot out a litany of achievements they attribute to the country’s “_____________and opening” policy—200m fewer citizens living in poverty, a 6% share of global GDP compared with 1.8% in 1978, a nearly 70% increase in grain production—the world’s financial crisis weighs heavily on their minds, and their leaders are struggling with unfinished business

5. Results: The Gap between the _______ and poor grows A man begs in Shanghai as wealthier residents pass by. Today, some experts say, success has become a secular religion, reinforced by official messages of opportunity Living the good life in China: Angelina Lei, 5, begins training early. NYTimes

6. Results: Broken Iron _____bowl BBC: . . .. a Chinese idiom which referred to the now abolished system of guaranteed lifetime employment. After the Communists came to power, all workers and farmers were put under state control. Their work units controlled every aspect of daily life, including the allocation of housing, food and clothing. They also decided who could marry and when, and who was allowed to have children. In return, work units would look after their workers for life. But China's transition from a centrally planned economy to a market economy has smashed the old guarantees. Millions of workers have been laid off as state-run firms have been restructured or shut down. This has sparked angry protests from their workers, who complain they have been left without the welfare Jobs for life are a thing of the past Economist October 2007 Missing the barefoot doctors

7. Results: growing rural/_________ income gap and r________ gap

8. As this Dec 2008 Economist article shows, it is NOT a free market still Liberal Chinese economists complain that the country still falls well short of what they would call a market economy. The currency is not fully convertible, so capital flows in and out of the country are controlled. So too, still, are some prices, including those of electricity, fuel and water. In January the government imposed new controls on some food prices. It lifted them again this month. Non-state-owned enterprises are now producing two-thirds of China’s manufacturing output, but SOEs dominate key sectors such as banking, telecoms, energy and the media. Between 2001 and 2006 the number of SOEs fell from 370,000 to 120,000, but this still left assets worth $1.3 trillion in state control. There is much more work to do.

9. Results . . They now have a ________ market—in a communist country . . Huh? The challenges are closely intertwined. Like Mr. Greenspan nearly a decade ago, Zhou Xiaochuan, the current governor of the People’s Bank of China, faces the knotty question of what to do about a speculative mania that has drawn millions of people with limited investing experience into betting their savings on the stock market. May 25 2007

10. Results: growth in ___________ products A couple buying decorations in Beijing for the Chinese New Year 2006. Economists say consumer spending is becoming more important to growth

11. Tho let’s not forget: China has undergone __________ reform, not ________ reform: Why you could say it has experienced p_______________ but not g__________

12. Recession Elsewhere, but It’s Booming in China The exhibition floor of the Guangzhou International Auto Show in China. After decades of gorging on consumption, Americans are saving. And the Chinese, who economists thought were addicted to saving, are spending more

13. Results: F___________ D_____________ ___________ up Figure 3. Inward FDI in China (US$ billion), 1979–2004

14. Results: China is accepted into the__________ __________ ___________

15. Results: Legitimacy issues so party tries . . . “One China Policy” Village elections “Harmonious Society”

16. Results: _______imbalance for US

18. China and U.S. Debt The largest portion of U.S. debt, 68 cents for every dollar or about $10 trillion, is owned by individual investors, corporations, state and local governments and, yes, even foreign governments such as China that hold Treasury bills, notes and bonds. Foreign governments hold about 46 percent of all U.S. debt held by the public, more than $4.5 trillion. The largest foreign holder of U.S. debt is China, which owns more about $1.2 trillion in bills, notes and bonds, according to the Treasury. In total, China owns about 8 percent of publicly held U.S. debt. Of all the holders of U.S. debt China is the third-largest, behind only the Social Security Trust Fund's holdings of nearly $3 trillion and the Federal Reserve's nearly $2 trillion holdings in Treasury investments, purchased as part of its quantitative easing program to boost the economy.

19. China’s trade surpluses and extensive intervention in currency markets have led it to amass $2.27 trillion in reserves, mainly in United States Treasuries, mortgage-backed securities and other dollar-denominated investments, helping to keep interest rates low and finance Americans’ borrowing. Chinese parsimony enabled American profligacy.

20. Results

21. China overtakes US as world's biggest CO2 emitter Cyclists pass a factory in Yutian in China's north-west Hebei province. Photograph: Peter Parks/AFP guardian.co.uk, Tuesday 19 June 2007

22. An industrial park built in Wuhai, in Inner Mongolia, along the Yellow River. In 1998, the city had only 4 factories; now there are more than 400. But the rapid industrialization has created a pollution nightmare for Wuhai, and with more development planned for the area, the demand for water is expected to skyrocket

23. Beijing’s Olympic Quest: Turn Smoggy Sky Blue Beijing residents in Tiananmen Square, used to pea-soup smog, ignored a citywide stay-indoors warning on Thursday. BEIJING — Every day, monitoring stations across the city measure air pollution to determine if the skies above this national capital can officially be designated blue. It is not an act of whimsy: with Beijing preparing to play host to the 2008 Olympic Games, the official Blue Sky ratings are the city’s own measuring stick for how well it is cleaning up its polluted air. Thursday did not bring good news. The gray, acrid skies rated an eye-reddening 421 on a scale of 500, with 500 being the worst. Friday rated 500. Both days far exceeded pollution levels deemed safe by the World Health Organization. In Beijing, officials warned residents to stay indoors until Saturday, but residents here are accustomed to breathing foul air. One man flew a kite in Tiananmen Square.

24. As China Roars, Pollution Reaches Deadly Extremes China’s industrial growth depends on coal, plentiful but polluting, from mines like this one in Shenmu, Shaanxi Province, behind a village store.

25. Perpetual Haze During the three decades since Deng set China on a course toward market-style growth, rapid industrialization and urbanization have lifted hundreds of millions of Chinese out of poverty and made the country the world’s largest producer of consumer goods. But there is little question that growth came at the expense of the country’s air, land and water, much of it already degraded by decades of Stalinist economic planning that emphasized the development of heavy industries in urban areas. For air quality, a major culprit is coal, on which China relies for about two-thirds of its energy needs. It has abundant supplies of coal and already burns more of it than the United States, Europe and Japan combined. But even many of its newest coal-fired power plants and industrial furnaces operate inefficiently and use pollution controls considered inadequate in the West. Expanding car ownership, heavy traffic and low-grade gasoline have made autos the leading source of air pollution in major Chinese cities. Only 1 percent of China’s urban population of 560 million now breathes air considered safe by the European Union, according to a World Bank study of Chinese pollution published this year. One major pollutant contributing to China’s bad air is particulate matter, which includes concentrations of fine dust, soot and aerosol particles less than 10 microns in diameter (known as PM 10).

27. Trucks Power China’s Economy, at a Suffocating Cost Spewing Soot While Waiting for Fuel Trucks often spend hours idling in fuel lines, like these in Wuhan, sometimes for as little as five gallons of diesel, because of shortages and rationing Good interactive graphic from series “chocking on growth” http://www.nytimes.com/interactive/2007/12/08/world/asia/choking_on_growth_7.html#story3

28. Results: McDonald's A busy upscale shopping district in downtown Shanghai. Notice the advertisements for McDonald's, Coca Cola and Pizza Hut. These and many other Western consumer goods and chain restaurants have become pervasive in China's larger cities

29. Protests in China . . . . See youtube videos

30. Massive Rural protests 10 April 2005: 20,000 peasants drive off more than 1,000 riot police in Huaxi, Zhejiang province 6 Nov 2004: Paramilitary troops put down an uprising of 100,000 farmers in Sichuan province 11 June 2005: Six farmers die in a fight with armed men in Shengyou, Hebei province China's tough handling of recent protests by villagers in Taishi, southern Guangdong province, has thrown into fresh doubt its claims to be introducing genuine democracy "from the bottom up". BBC Rural Protest 14 Jan 2006: Police break up protest in Sanjiao, Guangdong, over land grabs 29 July 2005: Villagers in Taishi, Guangdong try to oust mayor 6 Dec 2005: Police shoot dead protesters in Dongzhou, Guangdong

31. China overtakes Japan as world's second-biggest economy http://www.bbc.co.uk/news/business-12427321 14 Fev 2011 http://www.bbc.co.uk/news/world-us-canada-12224578

32. Maybe ___________, but not glasnost “Insist on the party’s leadership, governance by the people and ruling the nation by laws,” Hu said.

34. How does China hold down the value of its yuan (

35. Buying Dollars to Keep the Dollar Price High China has been interested in keeping the Yuan (Chinese Currency) undervalued relative to the US Dollar, and the easiest way (if you can afford it) to keep the Dollar price high, and the Yuan low is to buy dollars from the open market. A country like China, which runs a huge Trade Surplus can afford to buy dollars in the open market to keep the demand for dollars high, and push the dollar price upwards relative to the Yuan. This keeps the Yuan undervalued. Why Does China Wish to Undervalue the Yuan? China’s engine of growth is exports. The lower the value of the Yuan, the better it is for China’s exporters. Basically, if 1 Dollar buys 7 Yuans, and a exporter sells a Chinese Shirt for 10 dollars – he pockets 70 yuans. But if one Dollar was worth only 5 Yuans, the exporter would only be able to pocket 50 yuans.

36. One of these lists is titled “Who might be Hurt by a Yuan Appreciation” Another is titled “Companies Which Would Benefit from a Yuan Appreciation” Which is which? • U.S. manufacturers of capital equipment, such as Caterpillar (CAT) and Deere (DE),. • Wholesale food exporters like Archer-Daniels-Midland Company (ADM), DANONE, and Chiquita Brands International (CQB), • Western commodity manufacturers, such as steel companies like Nucor (NUE), Arcelor Mittal (MT), and Wheeling-Pittsburgh (WPSC), who face less competition due to higher Chinese prices. • Chinese airlines, such as China Eastern Airlines (CEA) and China Southern Airlines Company (ZNH), who now pay less in Yuan for airplanes and aviation fuels. “Companies Which Would Benefit from a Yuan Appreciation” • Investors holding a lot of Treasury Bills or U.S.-dollar-denominated bonds. • Mortgage providers like Countrywide Financial (CFC), Wells Fargo (WFC), and Federal National Mortgage Association (FNM) would face higher rates, which would decrease their business volume • Mass-market retailers Wal-Mart Stores and Target Stores • Electronics producers such as Dell (DELL), Hewlett-Packard (HPQ), Motorola (MOT) and Nokia (NOK) who built factories in China and employed Chinese workers to manufacture their products for the U.S. market. “Who might be Hurt by a Yuan Appreciation”