China Presentation, Global Economics
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Transcript of China Presentation, Global Economics
China’s Role in the
Global economy
MBA 602 – Global Economic Environment
Presented by: William AllenJuly 2013 University of Fredericton
China’s Role in the
Global Economy
Overview Background
GDP
Trade
Bad Publicity
Wages & Financial
Economic Growth
Economic Timeline
Share of Global Exports
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0
2
4
6
8
10
12
% of Global exports
Since joining WTO
China’s Trade
Total Trade $ billions
Since joining WTO
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0
500
1000
1500
2000
2500ExportsImports
Major Trading ($ billions)
EU USA Asean Hong Kong
Japan South Korea
Taiwan0
100
200
300
400
500
600
Imports Exports
2012
Exports >$2,000
Imports >$1,800
Total trade with major partners >$3,800
Tiananmen Square Affect on US-China relations
Political and economic Sanctions
Some sanctions still in effect 10 years later
19801982
19841986
19881990
19921994
19961998
0
2
4
6
8
10
12
14
16
% GDP growth 1980 to 1998
Tainted foodMelamine
• Dog Food• Baby formula
Formaldehyde• Blood Pudding
Monthly Wages 2012 20% increase in
minimum wage
Mexico $1,300
Beijing Shanghai Gansu Tibet Hubei Argentina Vietnam 0
50
100
150
200
250
300
350
400
450
Monthly Wages in US $
Annual Wages
270% increase
Impact on cost of goods?
Energy Second largest oil
importer 2012:• 5.7 million BPD• US: 9.8 million BPD
By 2035: • 13 million BPD
Financial Foreign exchange reserves
• $3.44 Trillion (2013)• 65% US• 26% euros• 5% pounds• 3% in yen.
US Debt • $1.3 trillion US
China’s Economic Growth
Capital
Worlds largest manufacturing
Increased wages
Increased productivity
Recap Continued economic growth
Second largest economy
Largest exporter
Largest importer
Largest manufacturer
Largest foreign exchange reserves
ReferencesAmericancentury, (2012, July), Chart of the Week: Wage Inflation in China: Implications for
Inflation and Global Investing. Retrieved from http://americancenturyblog.com /2012/07/chart-of-the-week-wage-inflation-in-china-implications-for-inflation-and-global-investing//
Carbaugh, R., (2013), International economics 14th edition, Wages increases and Chinese trade, pg 70
Chan, J., (2009, June), Origins and consequences of the 1989 Tiananmen Square massacre – part 3, retrieved from http://www.wsws.org/en/articles/2009/06/tien-j06.html
DeNavas-Walt, C., Proctor, B., Smith, J., (2012, September), Income, Poverty, and Health Insurance Coverage in the United States: 2011, retrieved from
http://www.census.gov/prod/2012pubs/p60-243.pdf
References Harding, H., (n.d), The Impact of Tiananmen on China's Foreign Policy, The National Bureau of
Asian research, http://www.nbr.org/publications/element.aspx?id=73
Labour department, (n.d), The government of Hong Kong Special Administrative region, Retrieved from http://www.labour.gov.hk/eng/news/mwo.htm
Morrison, w., (2013, July), China’s Economic Rise: History, Trends, Challenges, and Implications for the United States, Retrieved from http://www.fas .org/sgp/crs /row/RL33534.pdf
RT.com, (2013, July), China's US Treasury Holdings hit record $1.3 trillion, retrieved from http://rt.com/business/china-federal-debt-record-207/
ReferencesThe Conference Board, (2013, May), Global Economic Outlook 2013, retrieved from http://www.conference-board.org/data/globaloutlook.cfm
The Economist, (2012, March 10), The end of cheap China. Retrieved from http://www.economist.com/node/21549956
US v. China, (n.d), 1989: Tiananmen Square Massacre, Human Rights, Case Studies in Sanctions and Terrorism, The Peterson Institute for International Economics, retrieved from http://www.piie.com/research/topics/sanctions/china.cfm
Wageindicator.org (n.d), China Minimum Wages w.e.f July 1, 2013, retrieved from http://www .wageindicator.org/main/salary/minimum-wage/china-custom
Yueh, L., ( 2013, May), bbc.co.uk, China's ambitious plans for its huge reserves, retrieved from http://www.bbc.co.uk/news/business-22567974
QUESTIONS?