PowerPoint Presentation

CHINAPresented by TANURASHMI

RESOURCES OF CHINA

China is rich in mineral resources, and all the world's known minerals can be found here. To date, geologists have confirmed reserves of 158 different minerals, putting China third in the world in terms of total reserves. Reserves of the major mineral resources, such as coal, iron, copper, aluminum, stibium, molybdenum, manganese, tin, lead, zinc and mercury, are in the world's front rank. China's basic coal reserves total 337.34 billion tons, mainly distributed in northwest China and north China, China's 21.76 billion tons of the basic iron ore reserve are mainly distributed in northeast, north and southwest China. The country also abounds in petroleum, natural gas, oil shale, phosphorus and sulfur. Petroleum reserves are mainly found in northwest, northeast and north China, as well as in the continental shelves of east China. The national reserves of rare earth metals far exceed the combined total for the rest of the world.

Economy of chinaChina has a socialist market economy.Worlds second largest economy by nominal GDP.Worlds largest economy by purchasing power parity as per IMF.Worlds largest trading nation.

Worlds fastest growing consumer market and second largest importer of goods.Global hub for manufacturing, largest manufacturing economy in the world and largest exporter of goods in the world.

263 million landlines in a population of 1.3 billion people.

China is the worlds largest mobile telephone market

Within China, mobile communication is the most profitable sub-sector of the telecommunications market. This is dominated by two domestic companies, China Mobile, and China Unicom cutting into fixed line services of China Telecom, amongst others.

Technology

Chinas Trade History Peoples Republic of China (PRC)1949No significant foreign trade for first 30 years1950s and 1960s total value of trade 2% of GNP

Annual import & export volume & national income averaged -12.2% (1950s) - 8.4% (1960s) - 9% (early 1970s)

12/15/1978:US & China announced that the two governments would establish diplomatic relations on 1/1/1979

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Chinas Trade History ContTrading partners1950s Soviet Union and Eastern EuropeL/T credits from the Soviet Union U.S.$1.9BFunding of construction projects1960s Developing countriesDeferred payment method to import U.S. $670M worth of technological & equipment from the West

BankingPeoples Bank of China (central bank, founder of Chinas banking system, and govt. treasury) has sole responsibility of issuing currency and controlling the money supplyBank of China handles dealings in foreign exchange

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TradeInadequate port facilities and a lack of warehousing and cold storage installations impede both domestic and international agricultural trade.The U.S. trade deficit with China rose to $35.6 billion, the trade gap with China representsmore than 80% of the total U.S. trade deficitof $43.0 billion in 2014.While US exports to China reached $120 billion, making it the third-largest export market for US goods behind Canada and Mexico.Under its WTO accession agreement, China is reducing tariffs, eliminating import licensing requirements, and addressing other trade barriers.

Tariffs, Quotas & EmbargosThe average tariff rate is less than 17%China can impose anti-dumping duties on foreign goods if there is evidence showing that they are sold at dumping prices. The steel industry, one of Chinas largest industries, subsidizes domestic producers. China uses both tariff and non-tariff measures to regulate imports. Tariffs imposed include import duty (applied on the import CIF value and a few specific and compound duties on the volume imported), value added tax (VAT) and consumption tax; non-tariff measures include import licenses, quota control, restricted import list, etc.

TaxesValue added tax (VAT) is imposed on all commodities in addition to import tariffs. The basic rate is 17% and 13% on the following commodities: food and edible vegetable oil; drinking water, heating, natural gas, coal gas, liquefied petroleum gas; books, newspapers and magazines; feedstuffs, chemical fertilizer, pesticides, agricultural machinery and agricultural plastic sheeting.11 categories of goods are also subject to consumption tax when entering China. These include: cigarettes, liquor, cosmetics, skin- and hair-care products, jewellery, firecrackers and fireworks, petroleum, diesel, motor vehicle tyres, motorcycles and small motor vehicles. The tax rates range between 3% and 45%.

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