PRESENTED BY:SUMAIRA MUSTAFASAFIA KIRANMISBAH NAREJO

INTRODUCTION• China has one of the oldest civilization and its population of over

1.4 billion, which represents a 20% of the world ‘s population

Geographical location China is located in southeast Asia along the coastline of the pacific ocean. With an area of

9.6 kilometers and a coastline of 18000 kilometers Climate ranges from subtropical to sub arctic. Included Mount Everest, the world’s tallest mountain

History of China • Cycle of Dynasties ( Ming is a last of the native rulers (1368–1644))• Formation of People’s Republic in 1949. • Maoist ERA….. (1949-1976)

Mao Zedong is the outstanding figure in modern Chinese history, there were literacy drive, Nationalization of banking system, Eliminating landlords, Cultural Revolution -1966-1976,Growth in agriculture , the opening up of the country to foreign investment.

• 1980-1990 Its involved privatization & contracting out of much state owned industry ,Since the early 1990s, China has increased its global outreach and contribution in international organizations.

3

ETHNIC & RELIGIOUS COMPOSITION

59%20%

12%6%

2%1%

RELIGIONS IN CHINA

NO RELIGION 59%TAOISM & CONFUCIANISM 20%ATHEISTS 12%BUDDHIST 6%MUSLIMS 2%CHRISTIAN 1%

92%

8%

ETHNIC GROUPS

HAN CHINESE 91.9%

ZHUANG, UYGUR, TIBETAN, MONGOL, KOREAN & OTHER NATIONALITIES 8.1%

More than 200 languages spoken in china Mandarin(official language) 847.8 million (70.9%)

•Head of state: President of china•Head of government: Prime minster of china.•Cabinet of China.Executive branch•Parliament of China: •National People CongressLegislative

branch

Judicial branch military branch

All power within the government of the People's Republic of China is divided among several bodies:

Chairman of the Central Military Commission and Vice Chairmen

Political Structure

• Supreme court of china

Status at international level

As of 2013, china is the world's second-largest economy by both nominal total GDP and purchasing power parity(PPP),

It is also the world's largest exporter and importer of goods. It is the World largest potential for hydropower.

International organization participation

The PRC has been a United Nations member since 1971, when it replaced the ROC as a permanent member of the U.N. Security Council. China is also a member of numerous formal and informal multilateral organizations, including the WTO, APEC, BRICS, the Shanghai Cooperation Organization, the BCIM and the G-20.

CHINA shake-up in rankings reflected the shift to services and manufacturing from agriculture as the major contributors to growth which together employee more than 70% of the labor force and produce more than 60% of GDP.

10.1%

45.3%44.6%

Economic Structure 2013-2014

Agriculture  Industry Services

Overview of economy

AGRICULTURE SECTOR• Contribution in GDP: 10%

• Leading products are rice, Potato,

wheat, corn , sorghum, peanut, tea,

millet, Barley, cotton, oilseed, pork

and fish.

• About 300 million Chinese are

employed in the agriculture sector –

making up 34.8 % of the labor

force.

 

Livestock• China has a large livestock population, with pigs and fowl

being the most common• In rural western China, sheep, goats, and camels are

raised by nomadic herders• China’s world consumer and producer of pork with almost

half of billion pigs.

Forestry • The area covered by forests amounted to some 12 % of

total land area, which officials hoped to increase over the long term to 30 %.

Fishing• China accounts for about one-third of the total fish

production of the world. Aquaculture, the breeding of fish in ponds and lakes, accounts for more than half of its output.

INDUSTRIAL SECTOR

• China ranks 3rd in industrial output.• Industry and construction account for 45.3%

of China's GDP. Around 8% of the total manufacturing output in the world comes from China itself.

• China is the largest producer of steel in the world.

• Major industries: include mining and ore processing, iron, steel, aluminum, and coal; machine building; armaments; textiles and apparel; petroleum; cement; chemicals; fertilizers; consumer products, rail cars etc.

• Among the various industrial branches the machine-building and metallurgical industries have received the highest priority. These two areas account for about 20–30 % of the total gross value of industrial output.

SERVICES SECTOR • GDP Contribution:45.1%• China's services in 2010 ranks 3rd  worldwide. • Public administration become a main component

become service sector .Major sub sector Include:• Banking• Education• Defense• Transportation• Tourism

Financial and Banking System

A/c to the world bank credit provided by banking sector (%

of GDP) in China was last measured at 155.12 in 2012, according to the World Bank

Health sector:

A/c to the world bank• Health expenditure, total (% of GDP) is 5.6% (2013)• Health expenditure per capita US $ is $367 billion

DEFENCE INDUSTRY• China’s defense budget will rise by about 10% in 2015,• China has recognized nuclear weapons state and has the world's largest

standing army, with the second-largest defense budget behind the U.S. • China became the world's third largest exporter of major arms in 2010–2014. • It also have indigenous bullet train CRH380A.• China has made significant progress in modernizing its air force in recent

decades, manufacturing its own modern fighters, most notably the Chengdu J-10, J-20 and J-31.China is furthermore engaged in developing an indigenous stealth aircraft and numerous drones.

• It has also developed numerous advanced missile systems, the modern Type 99 tank, and nuclear-powered submarines such as the Type -093G, that is able to compete with their foreign counterparts.”

modern Type 99 tank,

The Lanzhou (DDG170), a Type 052C destroyer of the PLAN

J-31 fighter aircraft

Nuclear-powered Submarines Type -093G,

TRANSPORT

By airplaneBy roads

By shipment

• Contribution of transportation by Railways: total: 86,000 (2011). Highways: total: 3,860,800 km; Waterways: 110,000 km (2010), Airports: 502 as per 2011.

• Shanghai Pudong International Airport have ranked first.

• China is investing over $300 billion in building high speed rail to connect all of its major cities,

• China has over 2,000 river and seaports about 130 of which are open to foreign shipping.

• Ningbo, Shanghai, Tianjin are the major ports.

By railways

EDUCATION TOURASIM• Contribution 2.6% of GDP

Minister of Education: Yuan GuirenNational education budget (2012–2013)

￥ 388.39 billion • Total 95.1 % • Male 97.5 % , Female 92.7 %• Primary 121 million • Secondary 78.4 million, • Post secondary 11.6 million

• Number of overseas tourists : 55.98 million in 2010.

• Foreign exchange income : 45.8 billion

• Number of domestic tourist visits :1.61 billion: with a total income of: 777.1 billion yuan

EXPORT& IMPORT

• Total value of import: US$1.817 trillionWorld ranking # 02• IMPORTED PRODUCTS:

Crude Petroleum(14%), Integrated Circuits (7.6%), Iron Ore (5.3%), Gold(3.6%), and Cars(2.9%) The vast majority of China's imports consists of industrial supplies and capital goods.IMPORTED PARTNERS: Japan(10%), South Korea(9.3%), Other Asia(8.1%), United States(8.0%), and Germany(6.0%)

• Almost half of china's imports come from East and southeast Asia

• Total value of exports $2.252 trillion 2014 GDP ratio was 53.1 %.World ranking # 01• EXPORTED PRODUCTS:

computer (9.9%),  Telephones (4.3%),  Office Machine Parts (2.2%), and Integrated Circuits (2.0%), Electronics and machinery make up around 55% of total exports, garments account for 13% and construction material and equipment represent 7%.

• EXPORTED PARTNERS :sales to Asia represent over 40% of total shipments, while North America and Europe have an export share of 24% and 23%, respectively. Hong Kong 17.4%, US 16.7%, Japan 6.8%, South Korea 4.1% as per 2013.

Exports: ImportsTrade per capita: $2,413

EXPORT& IMPORT

Exports: Imports:

$2.21 trillion (2013 est.) $2.049 trillion (2012 est.)country comparison to the world: 1 country comparison to the world: 3

$1.949 trillion (2013 est.)$1.817 trillion (2012 est.)

Magnitude and Trends of Economic and Social Indicator

China Annual GDP growth Rate

The Gross Domestic Product (GDP) in china is 7.4% (2014), 7.7% (2013 est.), whereas in 2012, 7.7% and 9.3 % in 2011%. GNI per capita, $5,730 2012   $6,560 2013

PURCHASING POWER PARITY

Country comparison to the world: 1. The Purchasing Power Parity (PPP) in china is $ 9240.27 in 2014, $8230 billion in 2013 and $7320 billion in 2012

GDP per capita income$12,900 (2014 est.)$12,100 (2013 est.)$11,300 (2012 est.)note: data are in 2013 US dollarscountry comparison to the world: 113

year2012 year2013 year2014$10,500

$11,000

$11,500

$12,000

$12,500

$13,000

$13,500

$11,300

$12,100

$12,900

GDP per capita income

GDP per capita income

Foreign direct investment Foreign exchange reserve

FDI is $1062.41 (2014) Rimini yuan (RMB) per US dollar -6.12 (2014 est.)6.1958 (2013 est.)

INFLATION RATE

• Average consumer price index 2.65%• Inflation Rate of china is 2.1% 2013

and 2.6% 2012 .  

Infant mortality rate Total: 15.2 deaths/1,000 live births (2013) Male: 15.16 deaths/1,000 live births (2013) Female: 15.25 deaths/1,000 live births (2013)Mortality rate under-5 (Per 1000 live births) 14% 2012

Life expectancy at birth Total population: 74.99 years (2013) Male: 72.96 years (2013) Female: 77.27 years (2013)

Life expectancy rate 75 years 2011Life expectancy rate 75 years 2012Life expectancy at birth (Male) 74 years 2012Life expectancy at birth (Female) 76 years 2012

LITRACY RATE Age 15 and over can read and write: Total population: 95.92% (2010 census) Male: 95.1% (2000 census) Female: 86.5% (2000 census)

UNEMPLOYEEMENT RATEChina unemployment rate is 4.1% in 2014 and also 4.1 continuously last 3 decades

HUMAN DEVELOPMENT INDEXChina measured 0.719 "human development index" (HDI) in 2013 - 2014 is and in 2012 0.699, up from 0.695 in 2011. China's 0.719 on the HDI represents a remarkable increase of 72 percent from the 0.43 it registered on this scale in 1980, or an average year-on-year growth of 1.7 percent.

FERTALITY RATEThe 2010 census reported a TFR of 1.18 (0.88 in cities, 1.15 in townships, and 1.44 in rural areas

Fertility rate (Live births per women) 1.6% 2011

INCOME INEQUALITY AND GINI COFFICIENT IN CHINA

Income inequality around 47.3 in 2013 and

47.4 in 2012 and Gini coefficient is around 47. Gini coefficient 0.48 2011

Population growth rate

Population growth rate is approx. 0.7% (2005 -2009)

SAVING AND INVESTMENT

Saving49.5% of GDP (2012est.)49.7% of GDP (2013 est.)50.3% of GDP (2014 est.)country comparison to the world: 5

year2012 year2013 year201449.00%

49.20%

49.40%

49.60%

49.80%

50.00%

50.20%

50.40%

49.50%

49.70%

50.30%saving

saving

Rostow Stages of Growth• According to Rostow’s Growth Theory; CHINA lies under stage of “ DRIVE TO MATURITY”• High production in all sectors• Standards of living rise • Use of technology increases• The national economy grows • Rapid technological change

APPLICATION OF GROWTH AND DEVELOPMENT THEORIES

Classical Model Of GrowthThis Model is not applicable because• China is not a laissez fair economy• Economy is not working at full employment level• No perfect competition in all markets.

Lewis Theory of Growth Model• In china there was a reallocation of labor from agriculture

sector towards industrial sector, Growth of china initiated after the reforms were implemented and high investment on capital sector. Although in 1980 CHINA has large agriculture sector that contribute 48% with a 65% total labour force, that show surplus labour in agriculture sector. But after reform labour were transferred to capital sector because heavy investment were made in capital sector and service sector.Main Features of this Theory:

• Agriculture was Dominant sector in 1980 & 1990• Surplus labour was transferred to industrial sector• Around 25-30% labour migrated from Rural to Urban.• Heavy investment in industrial sector

H-D Model of Economic Growth

This Model is applicable as;• Growth in saving and Investment• Advancement in technology

Year 2005 2006 2007 2008 2009 2010 2011 2012

Investment 44.9% 45% 40% 46% 45% 48% 49.2% 46.1%

year 2004 2006 2008 2012 2013 2014saving 47% 50% 50% 49.5% 49.7% 50.3%

Solow growth model

• Solow growth model focus on three element that play important role to achieve high economy growth.

• Saving rate • Population growth rate• Capital investment• This theory is applicable on CHINA economy.

because saving rate and capital investment is higher than population growth .

International Dependence Revolution (IDR)

False Paradigm Model • This Model is NOT applicable because it is independent country not

borrowing from any other country.

Neo classical modelThis model is not applicable because china is fully utilize the allocation of recouses and not a liazes fair economy.

Conclusion• The economic reform since 1978 is a great success.• It is currently the world’s second largest economy, largest merchandise

exporter, second largest merchandise importer, second largest destination of foreign direct investment (FDI), largest manufacturer, largest holder of foreign exchange reserves, and largest creditor nation.

• China is not only exporting more goods and services; increasingly, it is exporting high-tech goods like computer chips.

• Some economic forecasters project that China will overtake the United States as the world’s largest economy within a few years, although U.S. per capita GDP levels are expected to remain much larger than that of China for many years to come .

• Industrialization, urbanization, and service sector shows great potential in two basic demands of investment & consumption

Recommendationwe recommend that they improve the rule of law, enhance environmental protection, reduce corruption, and improve the country’s social safety net (such as expanding health care and pension coverage to rural areas). And reduce air pollution and control environmental destruction things.Agriculture sector should be more focus.

http://www.chinatravel.com/facts/china-climate.htm

http://en.wikipedia.org/wiki/Demographics_of_China

http://www.slideshare.net/nefertari_1984/brief-history-of-china

http://en.wikipedia.org/wiki/Economic_history_of_China_%281949%E2%80%93present%29 http://en.wikipedia.org/wiki/List_of_ethnic_groups_in_China https://www.google.com.pk/?gws_rd=cr,ssl&ei=qkYzVdj4JoGVaszMgegD#q=Religious+Composition+of+china

http://www.economist.com/news/finance-and-economics/21572236-services-are-poised-become-countrys-biggest-sector-served-china

http://en.wikipedia.org/wiki/Outline_of_Chinaw.cia.gov/library/publications/the-world-fact book/geos/ch.htmlhttp://www.economywatch.com/agriculture/country-wide/china.htmlhttp://www.focus-economics.com/countries/china

http://www.economywatch.com/world_economy/china/industry-sectors.html

http://www.slideshare.net/1vimal1/economy-of-china-38016415?related=3

References

The End….

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Thank you!