Emerging ChinaEmerging China

GeographyGeographyGeographyGeography

9,573,000 square km

Beijing

Shanghai

Xian

Lhasa

Urumqi

Guangzhou

Kunming

PopulationPopulationPopulationPopulation

population: 1,360,500,000density: 365per square mile

ReligionReligionReligionReligion

Secular 60%

Chinese 31%

Christian 4%

Animist 2.5%

Muslim 2.5%

HistoryHistoryHistoryHistory

Ancient civilisation221-206BC: Unification of China1800s: Western imperialism1911: Republic founded1949-1976: Chairman Mao1966-1976: Cultural Revolution1997: Deng Xiaoping dies1997: Hong Kong returned to China1999: Macau returned to China

Economic StatsEconomic Stats

• 1.36 billion – population.• 1/6 of the world’s population.• 791 million workers• Enormous source of labor, affordable labor (1/20 of wages paid in western world).• Cost-effective production of goods and services.• Enormous consumer market with even more enormous potential.

Economic StatsEconomic Stats

• $8.23 trillion – Size of Economy (GDP).• Second (2nd) largest economy in the world (US-1st , Japan-3rd & Germany-4th).• Enormous purchasing power.• Amazingly, hardly a reflection of China’s economic potential.• Debatably, will be the largest economy by 2030.• Enormous production capacity.• $2.021 billion – exports.

Economic StatsEconomic Stats

• 7.8% - growth of economy.• One of faster growth rates in the world.• Levels sustained for more than a decade.• Gov’t has tried to cool off the economy.• Levels projected to 2015.• Fueled by enormous Inward Foreign DirectInvestment (FDI), close to $200 billion.• Spells enormous economic opportunity andpotential for prosperity in China wheredomestic savings deposits now over $1trillion.

Economic StatsEconomic Stats

• $9,162 – per capita income.• Low by developed world standards but much elevated from a 20 years ago ($370).• Imagine what China’s economy will be when per capita income reaches $40,000 (that of US).• Enormous consumer market potential.• $1.78 trillion – imports.

China in TransitionChina in Transition

• Following centuries of impressivedevelopments as a major civilization inthe world, China experience significantsocial, economic and political decline in the 18th and 19th centuries.

China in TransitionChina in Transition

• Today China is re-emerging as a major playeron the world’s economic scene due to a moreliberal, open-market economic policy embraced in the late 1970’s.• Many predictions suggest that if presentdevelopments continue, China will be “the”economic power in the world within twentyyears.

China DiscoveredChina Discovered

• More than 400 out of Fortune 500companies invested in over 2,000projects in China.• GM, Intel, IBM, Walmart, Microsoft,Perry Ellis, Boeing, etc., etc., etc.

China’s ProblemsChina’s Problems

• 18 percent of world’s poor• 150 million Chinese live on less than $1 per day• Only 80 million Chinese are considered ”middle class” by U.S. standards