BTLEW Global Financial Crisis subprime mortgage crisis.

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B T L E W Global Financial Global Financial Crisis Crisis subprime mortgage crisis subprime mortgage crisis

Transcript of BTLEW Global Financial Crisis subprime mortgage crisis.

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Global Financial Global Financial CrisisCrisis

subprime mortgage crisissubprime mortgage crisis

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The World CheersThe World Cheers for China in 2009 for China in 2009

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China’s ambition to China’s ambition to guarantee an guarantee an economic growth rate economic growth rate of 8 percentof 8 percent

a pipe a pipe dream dream

EconomyEconomy

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(金砖国家)

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China since the Reform China since the Reform & Opening-up in 1978& Opening-up in 1978

( 1904 ~ 1997)

a great reformer, a man who initiated the process of change in China

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“ “better to be poor under socialism than better to be poor under socialism than rich under capitalism.” rich under capitalism.” “ “Poverty is not socialism.”Poverty is not socialism.” “ “seek truth from facts”seek truth from facts” “ “socialist market economy”socialist market economy” ““Whether a cat is black or white makes no Whether a cat is black or white makes no difference. As long as it catches mice, it is a difference. As long as it catches mice, it is a good cat.”good cat.” “ “ socialism with Chinese characteristics”socialism with Chinese characteristics” “ “Four Modernizations” (those of agriculture, Four Modernizations” (those of agriculture, industry, science and technology and the industry, science and technology and the military. )military. )

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Economic ReformEconomic Reform

The Third Plenary Session of the 11th CPC Central Committee (1978)

Economic restructure

Rural areasRural areas Urban areas

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Agricultural Development

1978 The first reform in Xiaogang village 1982 the Household Responsibility System2003 The issue concerning agriculture,

countryside and farmers2005 The removal of agricultural tax2006-2010 “the 11th Five-Year Plan” --building a new socialist countryside

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China's Economic Zone

Beginning in 1980Beginning in 1980--five special --five special economic zones in economic zones in ShenzhenShenzhen, , Zhuhai Zhuhai and and ShantouShantou in Guangdong in Guangdong Province, Province, XiamenXiamen in Fujian in Fujian Province, and Province, and Hainan Hainan Province;Province;

1992 southern tour

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opened up 14 coastal cities, a group of border area cities and all capital cities; and set up 15 bonded zones, 54 state-level economic and technological development zones and 53 state new- and high-tech industrial development zones in certain large and medium-sized cities.

China's Economic Zone

Develop-the-Weststrategy

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Step One -- to double the 1980 GNP and ensure that the people have enough food and clothing;

Step Two -- to quadruple the 1980 GNP by the end of the 20th century;

Step Three -- to increase per-capita GNP to the level of the medium-developed countries by the mid-21st century.

 The Three-Step Development Strategy

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Key National Projects

The “West-to-East Electricity Transmission” the “West-to-East Gas Transmission”the “South-to-North Water Diversion”the Three Gorges Dam (1992-09)Qinghai-Tibet Railway (2001-06)

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The “Five-year-plan” strategy

(1953)The 9th Five-Year Plan(1996-2000)

two fundamental shifts: to shift the economic growth mode

from an extensive way to an intensive way

to shift economic system from a planned economy to a market economy

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The 11th Five-Year Plan(2006-2010) Stable development of the national economy; Optimizing and upgrading the industrial

structure; A marked growth in the utilization of

resources; Enhancing the capability for sustainable

development; Perfecting the market economic system; Further improving people's life.

The “Five-year-plan” strategy

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1. Goods with the label “made in China” are in shops all over the world. Hence China is nicknamed the “world’s factory”. What do you think of this label?

2. Recently, a media blitz in the West has asserted that China has become a developed country. What is the gap between China and developed countries?

QuestionsQuestions

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DEBATE

High housing price vs. low income

Can tightening measures blow house prices down?

Gen-20s on Gen-20s on housing price

housing price

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The Gini Coefficient/ index

0 Complete equality

1 Complete inequality

0.4 warning line

Widening wealth gap

measures income measures income disparity in a societydisparity in a society

0

10

20

30

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50

60

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the ri ch the poor

Urban Chi na

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Wealth Gap Issue in NPC and CPPCCWealth Gap Issue in NPC and CPPCC

Report on the Work of the Government

““Equality and justice shine Equality and justice shine even brighter than the even brighter than the

sun.”sun.”

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Three aspectsTo formulate policies and measures to adjust the To formulate policies and measures to adjust the

distribution of national income;distribution of national income; (规范国家收入的分(规范国家收入的分配)配)

To deepen the reform of the income distribution system To deepen the reform of the income distribution system of monopoly industries. of monopoly industries. (改革部分垄断行业的收入(改革部分垄断行业的收入分配)分配)

To standardize the pattern of income distribution. To To standardize the pattern of income distribution. To protect legitimate income; regulate excessively high protect legitimate income; regulate excessively high income; ban illegal income; gradually form a income; ban illegal income; gradually form a transparent, fair and rational pattern of income transparent, fair and rational pattern of income distribution; and resolutely reverse the widening income distribution; and resolutely reverse the widening income gap.gap. (保障合法收入,规范过高收入,取缔非法收(保障合法收入,规范过高收入,取缔非法收入,从而缩小贫富差距)入,从而缩小贫富差距)

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Consumer price index (CPI)

• Rising food and housing prices

• The purchasing power of the

consumers

Inflation

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Migrant workers1. Poor living& working conditions

2. Meager wages or delayed payments

3. Unemployment

4. Household registration system

5. The next generation migrant workers

6. Unequal social welfare system

7. Left-behind wives & children