P.R.C ECONOMY IN WORLD MARKET

NAİL ŞİMŞEK (INTERNATIONAL FINANCE) nail_bjk@hotmail.com GÖRKEM ENGİN (INTERNATIONAL FINANCE) gorkemengin@hotmail.com

1- Nail Şimşek

2-Görkem Engin

BAHÇEŞEHİR ÜNİVERSİTESİ

18.05.2011

- P.R.C Economy History- P.R.C Economy in World Markets- P.R.C Ecomomical Databases- P.R.C’s Productions in World Market- European Union Economy Vs. P.R.C

Economy

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-China's economic system before the late-1990s, with state ownership of certain industries and central control over planning and the financial system, has enabled the government to mobilize whatever surplus was available and greatly increase the proportion of the national economic output devoted to investment.

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-Analysts estimated that investment accounted for about 25 percent of GNP in 1979, a rate surpassed by few other countries. Because of the comparatively low level of GNP, however, even this high rate of investment secured only a small amount of resources relative to the size of the country and the population. In 1978, for instance, only 16 percent of the GNP of the United States went into gross investment, but this amounted to US$345.6 billion, whereas the approximately 25 percent of China's GNP that was invested came to about the equivalent of US$111 billion and had to serve a population 4.5 times the size of that in the United States

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-The limited resources available for investment prevented China from rapidly producing or importing advanced equipment. Technological development proceeded gradually, and outdated equipment continued to be used as long as possible. Consequently, many different levels of technology were in use simultaneously (seeScience and technology in the People's Republic of China). Most industries included some plants that were comparable to modern Western facilities, often based on imported equipment and designs. Equipment produced by Chinese factories was generally some years behind standard Western designs.

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- Agriculture received a smaller share of state investment than industry and remained at a much lower average level of technology and productivity. Despite a significant increase in the availability of tractors, trucks, electric pumps, and mechanical threshers, most agricultural activities were still performed by people or animals.

Although the central administration coordinated the economy and redistributed resources among regions when necessary, in practice most economic activity was very decentralized, and there was relatively little flow of goods and services between areas. About 75 percent of the grain grown in China, for instance, was consumed by the families that produced it. One of the most important sources of growth in the economy was the improved ability to exploit the comparative advantages of each locality by expanding transportation capacity. The communications and transportation sectors were growing and improving but still could not carry the volume of traffic required by a modern economy because of the scarcity of investment funds and advanced technology.

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China's overall power consumption in April increased 11.2 percent from a year earlier to 376.8 billion kilowatt hours (kWh), the National Energy Administration said on Saturday. That marks a slower pace of increase compared with March when it rose 13.4 percent year-on-year. China looks set for its worst power shortages since 2004, putting pressure on already squeezed industries and raising the possibility of the world's second-largest economy turning into a net importer of diesel. Central, southwestern and eastern provinces have introduced power use restrictions and rationing since late March, well ahead of the peak demand season in June, July and August, stoking worries that shortages could worsen and spread to more regions. On Friday, China said it would suspend diesel exports in order to conserve supplies for domestic use. Electricity consumption in the first four months rose 12.4 percent from the year-ago period to 1,467.5 billion kWh, the administration said.

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In 1985, industry employed about 17 percent of the labor force but produced more than 46 percent of gross national product (GNP). It was the fastest growing sector with an average annual growth of 11 percent from 1952 to 1985. There was a wide range of technological levels. There were many small handicraft units and many enterprises using machinery installed or designed in the 1950s and 1960s. There was a significant number of big, up-to-date plants, including textile mills, steel mills, chemical fertilizer plants, and petrochemical facilities but there were also some burgeoning light industries producing consumer goods. China produced most kinds of products made by industrialized nations but limited quantities of high-technology items 18.05.2011

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Technology transfer was conducted by importing whole plants, equipment, and designs as an important means of progress. Major industrial centers were in Liaoning Province, Beijing-Tianjin-Tangshan area, Shanghai, and Wuhan. Mineral resources included huge reserves of iron ore and there were adequate to abundant supplies of nearly all other industrial minerals. Outdated mining and ore processing technologies were gradually being replaced with modern processes, techniques and equipment.

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Foreign trade was small by international standards but was growing rapidly in size and importance, as it represented 20 percent of GNP in 1985. Trade was controlled by the Ministry of Foreign Economic Relations and Trade and subordinate units and by the Bank of China, the foreign exchange arm of the central bank. Substantial decentralization and increased flexibility in foreign trade operations occurred since the late 1970s. Textiles were leading the export category. Other important exports included petroleum and foodstuffs. Leading imports included machinery, transport equipment, manufactured goods, and chemicals

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Japan was the dominant trading partner, and accounted for 28.9 percent of imports and 15.2 percent of exports in 1986. Hong Kong was a leading market for exports (31.6 percent) but a source of only 13 percent of imports. In 1979 the United States became China's second largest source of imports and in 1986 was the third largest overall trade partner. Western Europe, particularly the Federal Republic of Germany, was also a major trading partner. Tourism was encouraged and growing.

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P.R.C Economy In World Markets

- In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the insurance; an insured, or policyholder, is the person or entity buying the insurance policy. The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a financial (personal) loss. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated.

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Insurance

Insurance brokerage - Insurance brokers shop for insurance (generally corporate property and casualty insurance) on behalf of customers. Recently a number of websites have been created to give consumers basic price comparisons for services such as insurance, causing controversy within the industry.

Insurance underwriting - Personal lines insurance underwriters actually underwrite insurance for individuals, a service still offered primarily through agents, insurance brokers, and stock brokers. Underwriters may also offer similar commercial lines of coverage for businesses. Activities include insurance and annuities, life insurance, retirement insurance, health insurance, and property & casualty insurance. Reinsurance - Reinsurance is insurance sold to insurers themselves, to protect them from catastrophic losses.

MİSSİON AND HİSTORY:

-The CED is designed for scholars, students and those interested in the study and development of the economy of the People's Republic of China. Anyone is able to add information to the platform by submitting relevant material.

-he CED is sponsored by the Center for China Studies in National Chengchi University, in Taiwan, and is supported by the Taiwan Ministry of Education. The project was launched in December 2003 and is currently directed by Dr. Chen-yuan Tung, a Professor at the Graduate Institute of Development Studies, National Chengchi University.

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Currently there are ten databases:-China Economic Literature Index Database

-China Economic Experts Database -China Economic Books Database  -China Economic Websites Database -China Economic Government Reports

Database -China Economic Analysis Reports Database

-China Economic Conference Database

-China Economic Call for Papers Database -Renminbi Database

-The OpenCourseWare (OCW) Project 18.05.2011

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Energy and mineral resources Mining resources Heavy Industry Resources Hydroelectric resources Coal Oil and Natural Gasses Metals And Non Metals Steel Industry Materials Automotive Industry Telecommunications industry Electronic Industry

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Pharmaceutical industry Defence Industry Shipping Industry Toy Industry Food Industry Textile Industry Tourism

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CHİNA Statistics GDP$5.88 trillion (nominal: 2nd; 2010)

$10.08 trillion (PPP: 2nd; 2010) GDP growth10.46% (major economies: 1st; 2010) GDP per capitaL$4,283 (nominal: 95th; 2010)

$7,518 (PPP: 93th; 2010) GDP by sector industry (46.8%), services (43.6%),

agriculture (9.6%) (2010 est.) Inflation (CPI)4.9% (January 2011) Gini index 41.5 - Labour force 819.5 million (1st; 2009) Labour force by occupation agriculture (39.5%),

industry (27.2%), services (33.2%) (2008) Unemployment4.2% (July 2010)

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CHİNA MAİN INDUSTRİES- mining and ore processing, iron, steel, aluminum,

and other metals, coal; machine building; armaments; textiles and apparel; petroleum; cement; chemicals; fertilizers; consumer products, including footwear, toys, and electronics; food processing; transportation equipment, including automobiles, rail cars and locomotives, ships, and aircraft; telecommunications equipment, commercial space launch vehicles, satellites

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ExportsUS$1.506 trillion (2010)Export goodselectrical and other machinery, including

data processing equipment, apparel, textiles, iron and steel, optical and medical equipment

Main export partnersUS 20.03%, Hong Kong 12.03%, Japan 8.32%, South Korea 4.55%, Germany 4.27% (2009)

ImportsUS$1.307 trillion (2010)Import goodselectrical and other machinery, oil and

mineral fuels, optical and medical equipment, metal ores, plastics, organic chemicals

Main import partnersJapan 12.27%, Hong Kong 10.06%, South Korea 9.04%, US 7.66%, Taiwan 6.84%, Germany 5.54% (2009)

FDI stock$100 billion (2010)Gross external debt$406.6 billion (22nd; 2010)

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European Union Statistics

GDP (PPP)2010 (IMF) estimate - Total$15.170 trillion  - Per capitaL$30,388 

GDP (nominal)2010 (IMF) estimate - Total$16.282 trillion  - Per capitaL$32,615 

Gini (2009)30.7 (EU25) (High) HDI (2007)0.937 (High) 

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European Union Main Industries-Machine Industry-Plane Industry-Automobile Industry-Textile Industry-Food Industry-Toy Industry-Defence Industry-Oil and Natural Gasses-Coal-Iron Industries

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European Union Main Industries-Medical Industry-Telecomminication Industry-Ship Industry-Architecture-Building Industry

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