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The use of global economy for china’s economic growth

The use of global economy for china’s economic growth . Group 2 : Haris Setya 1050302011210 Alindia Fitra Joeda 105030201121023 Nanik Sunarni 105030213111011 Zaky Zamrudi 1050302011210 Jaquelina Nani LS 105030201121013. CHINA EXPAND MARKET.

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The use of global economy for china’s economic growth

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  1. The use of global economy for china’s economic growth • Group 2: • Haris Setya 1050302011210 • Alindia Fitra Joeda 105030201121023 • Nanik Sunarni 105030213111011 • Zaky Zamrudi 1050302011210 • Jaquelina Nani LS 105030201121013

  2. CHINA EXPAND MARKET • The main motivations for Chinese companies heading into foreign markets are the ease of trade (69 %) and to expand their network (59 %). • About four out of every five international Chinese corporates plan to expand further overseas, a survey by HSBC found. • Investment in traditional markets such as North America (24 %) and Europe (22 %) was driven by market potential as well as research and development and advanced technology. China Market Expansion • CHINA’S ECONOMIC OUTLOOK • After slowing substantially over the past year, China’s economy is showing signs of reverting to faster growth. Alindia Fitra Joeda 105030201121023

  3. CHINA’S ECONOMIC OUTLOOK China Market Expansion Alindia Fitra Joeda 105030201121023

  4. CHINA 2013 FORECASTS OVERSTATE GROWTH POTENTIAL • China’s money supply is now larger than that of the United States, even though China’s economy is half as large. Strong overall growth in credit is powering a recovery in China’s construction sector this winter, as businesses and households are starting to find it easier to borrow. • China’s imports are growing less than half as fast as its exports, making it hard for China to become the locomotive to pull the global economy out of its half-decade funk. • The Chinese economy remains dominated by manufacturing, and factory overcapacity still exists in some sectors. China Market Expansion • At the same time, the labor-intensive service sector is growing rapidly and has far less overcapacity that can be used without causing inflation. Alindia Fitra Joeda 105030201121023

  5. Electrical machinery and equipment 314.4 Mineral fuel and oil 188.7 Power generation equipment 172.3 Ores, slag and ash 108.6 Optics and medical equipment 89.8 Plastics and articles thereof 63.7 Inorganic and organic chemicals 58.2 Vehicles, excluding rail 49.5 Source: PRC General Administration of Customs, China's Customs Statistics ChiNA IMPORT 2007 Haris Setya 1050302011210

  6. CHINA EXPORT 2007 Electrical machinery and equipment 388.8 Power generation equipment 309.8 Apparel 121.1 Iron and steel 68.1 Optics and medical equipment 52.1 Furniture 50.6 Inorganic and organic chemicals 43.2 Ships and boats 40.3 Source: PRC General Administration of Customs, China's Customs Statistics Haris Setya 1050302011210

  7. Export and Import Source • Export : United States, Hong Kong, Japan, South Korea, Germany, The Netherlands,India,United Kingdom,Singapore,Italy • Import : Japan, South States, Germany, Australia,Malaysia,Brazil,Thailand Saudi Arabia Haris Setya 1050302011210

  8. Economic Cooperation Across Nation • Economic Cooperation across nationis the relationship between a country with other countries in the economic sector through specific agreements, by holding the principle of fairness and mutual benefit • Each country that cooperates with other countries certainly has a purpose, such as: • Fill the gap in the economy for each country cooperate • Increasing economics of conducting cooperation in various sector NANIK SUNARNI105030213111011 • Improve human life, welfare, and prosperity of the world • Expand and strengthen friendship relations • Increase Foreign Exchange

  9. The Cooperation between China and other countries • The Cooperation between China and United States In 2011, the United States remains China’s largest trading partner and the largest market for Chinese exports. In the same year, China has also become a large market for U.S. Manufacturers and farmers, imported commodities worth U.S. $120 billion. • The Cooperation Among China, South Korea, and Japan On May 2012, the economists of the three countries met to discuss strategies to foster new economic growth engine. They have similarity that they rely on exports to bring rapid economic growth and improve people’s quality of life better NANIK SUNARNI105030213111011

  10. The Impact for the Economic Growth in China • The Cooperation between China and United States • Get Much profit  China runs trade with profits $ 273 billion with the United States in 2010 • Increase Foreign Exchange the yuan has appreciated more than 11% against the dollar since 2010 and more than 30% since 2005 • More Investment  more than 100 MNC have projects in China, some of which have a lot of investment. • Increase the society welfare • The Cooperation Among China, South Korea, and Japan • Lead a new Industry in the world • Develop new growth engines, including the development of environmentally friendly cars, energy generation with sollar power and the development of new material NANIK SUNARNI105030213111011

  11. CHINA and WTO China has join to WTO for a decade start from 14 September 2001. it is not the first time china joining WTO. China has join GATT in 1947 before declared to resign in 1950. Factor of china joining WTO: • Reformation • watching the high-tech revolution of the 1990s. • Export • Political reason ZakkyZamrudi 105030201121014

  12. What has been changed/reformed? • Over 1100 laws and regulations have been changed since 2001 • China can not impose one level of barriers (e.g., tariffs) against one member country and another level for others • China will participate in the WTO's dispute settlement system • Manufactured goods saw the largest decrease in tariffs. • Tariffs were eliminated on computers, semiconductors and other information technology products. • In agriculture, it has pledged to bind all tariffs and reduce them from an average level of 31.5 percent to 17.4 percent • Foreign car makers will be able to distribute and retail vehicles on their own, and provide financing to buyers. • China has promised to open its telecommunications, financial services, distribution, and many other industries to foreign service providers. • Pledged to apply its trade policy uniformly across the country and to enforce only those laws, regulations, and other measures that have been published beforehand. • Agreed to eliminate all prohibited subsidies, liberalize trading rights, and require state trading companies to conduct their operations in a commercial manner. ZakkyZamrudi 105030201121014

  13. Foreign Investment • Influx of foreign investment has increased rapidly since entry to WTO because of increased confidence from multinationals • China experienced an increase of 22.55% in foreign direct investment one year after WTO entry • Foreign Investment has exceeded the United States, making the country the largest foreign investment destination in the world • Low cost labor and vast market, which provide a great scope for profit, make investors confident in investing time and resources into China The future for China in the WTO? • Economic growth will continue and more reforms will be made • China will have access to advanced technology • By 2010, all of China’s tariffs will eventually be reduced to 15% • Banks will begin to launch massive market oriented reform programs to prepare for competition from outside markets • Business standards will continue to rise • Chinese citizens will begin to receive 3 key things: • More Rights • Better Government Services • Equal Treatment ZakkyZamrudi 105030201121014

  14. China’s Dominance in World Economy Source: Gallup's annual World Affairs poll, conducted Feb. 7-10th 2013 • Chinahas an explosive economic growth in recent years, but the United States still ranks as the no. 1 economy in terms of gross domestic product (GDP). • However, China is estimatedto overtake the U.S. as the largest economy in the next several years. Jaquelina NLS 105030201121013

  15. China’s Dominance in World Economy • Two decades ago, Japan was undoubtedly the giant of Asia, commanding almost 60% of Asia GDP in 1996. • By 2011, China repalce Japan position. Chinese economy took a big stride from making up 11% of Asia’s GDP in 1996 to 35% in 2011. • Given its growing size, China’s contribution to GDP growth continous to climb. Jaquelina NLS 105030201121013

  16. China has emerged as a major world power in global economy. • China’s increasing productivity has accelerated its economic growth to 10%a year and caused manufacturing jobs in other countries to become less. • 3/4of the world’s goods is manufactured in China • China use its economic advantages to expand the country’s influence. • China uses its substantial trade surplus to buy up manufacturing resources, technologies and commodities around the globe. • controlling manufacturing costs + low labor cost production of cheap exports • China’s currency tactics to gain power • China buys dollars and Treasuries to keep the value of U.S. currency high.  • high value of USD  yuan to become undervalued   decreasing the cost of China’s exports spurring its worldwide demand Jaquelina NLS 105030201121013

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