I recently came across this extract in a white paper written by Dr. Daniel Park, Associate Consultant – International Projects at B2B International, entitled “How to Research & Evaluate Outsourcing Opportunities in China“, and which I thought nicely encapsulated some useful and interesting facts about China, and its’ economic development. I recommend you go and read the complete article for yourselves. Please, see the link at the foot of this posting for directions to the article itself.
Now, the article was written in 2007, but much of the data holds true today, and it’s worth noting that many of these data have now exceeded the 2007 levels. Moreover, the fact that China had massive USD reserves has been something of a saviour since the global credit crisis, as China has been able to bail out many who were beset by financial difficulties due to the crisis.
Here are the main points Dr. Park made, although the article is far more extensive than this short extract:
- China is the world’s fastest-growing major economy – around 9% per year sustained over the past few years.
- China is the world’s third-largest trading economy – US$ 1000 billion per year in foreign trade value.
- The technological level of the Chinese economy is rising rapidly – Chinese growth is NOT based exclusively on utilization of cheap labour.
- China’s foreign exchange reserves exceed US$ 500 billion.
- China is fully accustomed to trading in world currencies – this is one reason why its dollar (and other hard currency) reserves are healthy.
- China is a member of the World Trade Organization.
- China’s population of 1.3 billion is becoming increasingly affluent.
- China has put a man in space; is a significant nuclear power; and some parts of its manufacturing industry compare favourably with the best in the world.
- China is the biggest spender on research and development after the United States and Japan.
- New foreign direct investment is running at about US$ 50 billion per year and is growing.
- Chinese expenditure on overseas mergers and acquisitions topped US$ 2 billion in 2003 and looks set to reach US$ 4 billion in 2007.
- China is taking steps to end the fixed relationship with the dollar and to allow exchange rates and interest rates to become market-determined.
Daniel Park, March 2007
About the author
Dr. Daniel Park qualified in economics at the University of Glasgow. He has been associated with B2B International Ltd since its foundation, and has acted as adviser and consultant in many of the company’s international projects. Since his first visit to South-East Asia in 1978 he has made over 60 business visits to Hong Kong/China. Between 2004 and 2006 he served as a non-executive director of a major Hong Kong manufacturing company with facilities in China, employing some five thousand people and operating at 6-sigma standards for world markets.
Source: www.b2binternational.com
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Originally posted 2009-08-13 02:05:31. Republished by Blog Post Promoter
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