AQA A2 Business Studies BUSS4 CHINA ECONOMY PERSPECTIVES

Transcription

1 AQA A2 Business Studies BUSS4 CHINA ECONOMY PERSPECTIVES

2 35% Share of World GDP 30% 25% 20% 15% USA 10% CHINA 5% INDIA 0% Page 2

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17 Urbanisa on: through a combina on of consump on and investment in physical capital, McKinsey es mate China s growing ci es could inject up to $30 trillion a year into the world economy by 2025 Despite urban migra on being a top priority for policymakers in China, many ordinary Chinese are feeling le behind by the country s rapid urbanisa on. Page 17

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19 As its government acknowledges, China s economy must rebalance by reducing its reliance on investment and increasing consump on. Household consump on accounts for only around 38 percent of China s GDP, barely half that of the USA and other mature economies. Page 19

20 China is to spend almost $300bn developing renewable energy in the five years through 2015 and a further $380bn in key energysaving and emission-reducing projects. Page 20 China is the world s biggest carbon emi er having overtaken the USA in Between 2001 and 2010, China s carbon emissions rose from 3.0m to 7.8m metric tons.

21 China plans to build 56 new airports, while reloca ng 16 and rebuilding or expanding 91 in the five years to an investment of around US$69bn. Of China s 183 airports, 143 are currently loss-making. Page 21

22 By 2012 China had a total urban popula on of 712 million or 52.6% of the total popula on, rising from 26% in It is predicted that nearly 70% of the popula on will live in urban areas by Page 22 The fast pace of urbanisa on will create at least 1 trillion yuan in annual investment in building water supply, waste treatment, hea ng and other public u li es in China s ci es.

23 The five largest retailers (by sales) in China are all Chinese. Wal-Mart (the world s biggest retailer) is number 6 in China. E-commerce in China is dominated by one firm - Alibaba - which has a market share of over 70%. Amazon s market share in China is less than 2% Page 23

24 16 of the 20 most polluted ci es in the world are Chinese. Linfen is reputed to be the worst - it is claimed spending 24 hours breathing its air is equivalent to smoking a pack of 20+ cigare es! Page 24 It is es mated that outdoor air pollu on contributed to 1.2 million premature deaths in China in 2010, nearly 40 percent of the global total.

25 In 2011 China overtook the US to become the world s largest producer of manufactured goods. China now accounts for over 20% of all global manufacturing. Foxconn, the world s largest electronics contract manufacturer famous for supplying Apple, Nokia, Dell, Google and Nintendo (amongst others) has 1.3 million employees. Page 25

26 China will soon have 40% more coal reserves than the combined weight of the human popula on. In 2012, even as economic growth slowed, China invested 529bn yuan ($86bn) in coal mining. China has around 97% of the rare earth metals in the world Page 26

27 China s builders can claim to be the fastest on the planet a er pu ng up the 30-storey 183,000-square-foot Arc Hotel in just 360 hours. China consumes over half of the world s cement produc on Page 27

28 Star ng in 2007, China is building over 10,000 miles of highspeed rail connec ng all of China s major ci es by The total investment is over $300bn. Page 28 America s fastest high speed train goes less than half as fast as the new train between Shanghai and Beijing

29 China has the highest FX reserves of any country (over $3.3 trn) - the closest second is Japan but China s are more than twice Japan s levels Foreign direct investment into China fell in 2012 for the first me since 2009 as Chinese economic growth slowed and rising labour costs made other investment des na ons more a rac ve. Page 29

30 China is the 2nd largest economy in the world (GDP) but China is not a member of the G8 China has added an economy the size of Portugal s GDP every year since 1979 Page 30

31 China now has a bigger middle class than the USA has people China s growth has pulled more people out of poverty than any other economic policy ever Page 31

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