sign in sign up
<<
Home , Cai Wu, Chen Lei (PRC Minister), Geng Huichang, Jiang Weixin, Li Liguo, Miao Wei

Country Profile

China

Country Profile

Politics

Economy

Trade & Industries

General Profile Total area 1,343,239,923 (July 2012 est.) Population 17,067,369 (July 2012 est.) Government type Communist state President (since 15 March 2003); Vice President XI Chief of state Jinping (since 15 March 2008) Premier (since 16 March 2003); Executive Vice Premier (17 March 2008), Vice Premier HUI Head of government Liangyu (since 17 March 2003), Vice Premier ZHANG Dejiang (since 17 March 2008), and Vice Premier (since 17 March 2008) Capital Climate extremely diverse; tropical in south to subarctic in north or Mandarin (Putonghua, based on the Beijing dialect), Yue (Cantonese), Wu (Shanghainese), Minbei Language (Fuzhou), Minnan (Hokkien-Taiwanese), Xiang, Gan, Hakka dialects, minority languages (see Ethnic groups entry) Shanghai 16.575 million; BEIJING (capital) 12.214 million;

Major City Chongqing 9.401 million; Shenzhen 9.005 million; Guangzhou 8.884 million (2009)

Economy Profile

2009 2010 2011 Profile General World GDP Growth -5% 9% -

CHINAGDP Growth 9.2% (2009) 10.5% (2010) 9.2% (2011) Chapter: Chapter:

1

GDP $6.989 trillion GDP – Per capita $8,400 (2011 est.) agriculture: 10.1%; industry: 46.8%; services: 43.1% (2011 GDP – Composition by sector est.) Inflation 5.4% (2011 est.) Exchanges Rates 6.455 (2011 est.) yuan (RMB) per US dollar Primary Economy Sector Automotive; Construction; Energy; Insurance

Unemployment Rate 6.5% (2011 est.)

Economy Profile Economy Chapter: Chapter:

2

Dalian, Guangzhou, , Qingdao, Qinhuangdao, Shanghai, Shenzhen, Tianjin Ports and Terminals Beijing Capital International Airport; Fuzhou Changle International Airport; Kunming Wujiaba International Airport; Shanghai Hongqiao International Airport; Taoxian International Airport; International Airports Chengdu Shuangliu International Airport; Guangzhou Baiyun International Airport; Qingdao Liuting International Airport; Shanghai Pudong International Airport; Xian Xianyang International Airport

Election results percent of vote - NA; seats - 2,987

 Min. in Charge of the State Population & Family Planning Commission :  Min. in Charge of the State Ethnic Affairs Commission :  Min. of Agriculture :  Min. of Civil Affairs :  Min. of Commerce : CHEN Deming  Min. of Culture :  Min. of Education :  Min. of Environmental Protection :  Min. of Finance : XIE Xuren  Min. of Foreign Affairs :  Min. of Health : CHEN Zhu Ministry Name  Min. of Housing & Urban-Rural Development :  Min. of Human Resources & Social Security :  Min. of Industry & Information Technology :  Min. of Justice :  Min. of Land & Resources :  Min. of National Defense : LIANG Guanglie,  Gen. Min. of Public Security : MENG Jianzhu  Min. of Railways : SHENG Guangzu  Min. of Science & Technology :  Min. of State Security :  Min. of Supervision : MA Wen  Min. of Transportation : LI Shenglin  Min. of Water Resources : CHEN Lei

Political parties and or CCP [HU Jintao]; eight nominally leaders independent small parties ultimately controlled by the CCP Since the late 1970s China has moved from a closed, centrally planned system to a more market-oriented one that plays a major global role - in 2010 China became the world's largest exporter. CHINA Economy Reforms began with the phasing out of collectivized agriculture, and Characteristics expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, creation Terminals Ports and

of a diversified banking system, development of stock markets, rapid

growth of the private sector, and opening to foreign trade and Chapter: Chapter:

3 investment. China has implemented reforms in a gradualist fashion. In recent years, China has renewed its support for state-owned enterprises in sectors it considers important to "economic security," explicitly looking to foster globally competitive national champions. After keeping its currency tightly linked to the US dollar for years, in July 2005 China revalued its currency by 2.1% against the US dollar and moved to an exchange rate system that references a basket of currencies. From mid 2005 to late 2008 cumulative appreciation of the renminbi against the US dollar was more than 20%, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing allowed resumption of a gradual appreciation. The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2010 stood as the second-largest economy in the world after the US, having surpassed Japan in 2001. The dollar values of China's agricultural and industrial output each exceed those of the US; China is second to the US in the value of services it produces. Still, per capita income is below the world average. The Chinese government faces numerous economic challenges, including: (a) reducing its high domestic savings rate and correspondingly low domestic demand; (b) sustaining adequate job growth for tens of millions of migrants and new entrants to the work force; (c) reducing corruption and other economic crimes; and (d) containing environmental damage and social strife related to the economy's rapid transformation. Economic development has progressed further in coastal provinces than in the interior, and by 2011 more than 250 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of population control policy is that China is now one of the most rapidly aging countries in the world. Deterioration in the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially in the North - is another long-term problem. China continues to lose arable land because of erosion and economic development. The Chinese government is seeking to add energy production capacity from sources other than coal and oil, focusing on nuclear and alternative energy development. In 2010-11, China faced high inflation resulting largely from its credit-fueled stimulus program. Some tightening measures appear to have controlled inflation, but GDP growth consequently slowed to near 9% for 2011. An economic slowdown in Europe is expected to further drag Chinese growth in 2012. Debt overhang from the stimulus program, particularly among local governments, and a property price bubble challenge policy makers currently. The government's 12th Five-Year Plan, adopted in March 2011, emphasizes continued economic reforms and the need to increase domestic consumption in

order to make the economy less dependent on exports in the future. Chapter: Chapter:

4

“The Chinese government rightly advocates firm opposition to trade and investment protectionism, as emphatically stated by Premier Wen Jiabao on several occasions in the past few weeks. As it did a decade ago during the Asian crisis, China has set itself firmly against inward retrenchment in the face of economic downturn. We celebrate this commitment at OECD.

We have agreed that an open and reliable investment framework is one of the most important comparative advantages for any country. This crisis is an opportunity to improve these frameworks. As corporations reflect on how to adapt their investment decisions to the global recession, governments can take the opportunity to revise their investment policies, to take stock of achievements, but also to identify the pending challenges.(…)

The Chinese government has made massive strides in recent years to put in place the laws and rules to encourage responsible business conduct. And this is behind the remarkable growth of FDI (foreign direct investment) inflows during the last years.

Some of these steps include the regulations China adopted in 2006 on the acquisition of domestic enterprises by foreign investors, the enterprise income tax law that effectively abolished fiscal incentives for FDI from 2008, China’s first property rights law, the anti- Investment Policy monopoly law, and the latest revision of the catalogue for guiding foreign investment in industries.

China’s policies and laws on environmental protection are another good example of improvement. To prepare its review, an OECD team visited four textile factories in South China. They were all excellent examples of what can be done by enterprises that understand the importance of responsible business conduct.(…) Important progress has also been made in energy conservation and in building a “circular” economy. Labour laws have also developed rapidly and have become more transparent. A good example is the new Labour Contract Law. These are all important achievements, but there is no space for complacency. There is still important work to be done. The Review has a few more recommendations to help China make better use of foreign investment. National security screening procedures for foreign investment projects, for example, are still not transparent enough.(…) More clarity on how the new Property Law will be applied is also important; especially for investors looking at the manufacturing sector.(…) Working with the OECD and other partners to keep the global Policy Investment investment regime open will also help China’s FDI to play its part

both in the global recovery and in China’s own development. I am Chapter: Chapter:

5 glad that China has participated in the so-called Freedom of Investment process hosted by the OECD. This multilateral process helps governments to closely monitor the policy changes being proposed or taken by other countries and also sets disciplines for new measures that are potentially restrictive.”

Investment Policy Investment Chapter: Chapter:

6

At a time of heightened trade tensions around the world as governments manage the economic consequences of last year's global recession and 12 percent drop in world trade flows, this Trade Policy Review (TPR) of China has highlighted the valuable role that the WTO's TPR Mechanism plays by increasing transparency, encouraging consultation and cooperation among WTO Members, and helping to avoid misunderstandings and, ultimately, trade disputes when trade frictions arise.

A well-functioning multilateral trading system has contributed considerably to China's sustainable economic growth and development. The global recession had a substantial adverse impact on China's economy as external demand fell sharply from the end of 2008. The Government's response of expansionary fiscal and monetary policies, including a Y4 trillion (13% of 2008 GDP) stimulus package, helped China's economic growth to rebound in 2009 and made an important contribution to global recovery elsewhere, particularly in the Asia region.

The global economic crisis has reinforced China's determination to transform its pattern of economic development, including Trade Policy through structural diversification, improving the functioning of the domestic capital market and strengthening social safety nets for the population. Looking ahead, as the Government pursues policies to increase the role of domestic demand in underwriting China's growth and to encourage the expansion of the services sector, further liberalization of the trade and investment regimes is called for to foster competition and achieve more efficient allocation of resources in the economy.

The TPR covered all aspects of China's trade policies and practices. It was based on reports by the WTO Secretariat and the Chinese Government as well as an extensive and detailed exchange of views between China and other WTO Members involving more than 1,500 written questions.

There was widespread recognition of China's constructive role

in resisting protectionist pressures and boosting global demand during the recent economic downturn, appreciation for China's stepped-up involvement in South-South trade and its duty-free

scheme for imports from least-developed countries, and Policy Trade acknowledgement that China has continued the gradual

liberalisation of its trade and investment regimes, although Chapter: Chapter:

7

several members felt that this had slowed down compared to its pace in earlier years. Development, Diverse Economis Sectors, Power Industry, Main Industry Manufacturing and Automobiles ICBC, PetroChina, China Construction Bank, Agricultural Bank of China, Bank of China, Aluminum Corp of China, SAIC Motor, Dongfeng Motor Group, Guangzhou Automobile, Kweichow Moutai, Wuliangye Yibin, Jiangsu Yanghe Brewery, ZTE, Lenovo Group, Tencent Holdings, Biggest Company Baidu, Netease.com, TCL Corp, Great Wall Technology, China Shenhua Energy, China Coal Energy, Yanzhou Coal Mining, Huaneng Power Intl, China Yangtze Power, Datang International Power, Dongfang Electric

Main Industry Main Chapter: Chapter:

8