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By

Rana Piush (087), Rana Kishan (086), Pansuriya Kiran (063),

Mepani Bhavesh (132), Sharma Nitin (102), Parmar Mahavir (064).

Group No. 01

Under the guidance ofMr. Paresh Dave

S.R.Luthra Institute of Management

G

roup-01

(B2)

2012

Econo

myofC

hina

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1) Basic Information about China

China officially the People's Republic of China (PRC), is the largest country in East Asia. It is th

world's most populous country, with a population of over 1.3 billion. Covering approximately 9.6 millio

square kilometers, the country is the world's second-largest country by land area, and the third- or fourth-large

by total area, depending on the definition of total area. The People's Republic of China is a single-party sta

governed by the Communist Party of China.

Capital :- Beijing (Peking)

President: - Hu Jintao Premier: - Wen Jiabao

Currency: - Renminbi (Yuan) ()

Central bank: -The Peoples Bank of China

China's landscape is vast and diverse, with forest steppes and the Gobi and Taklamakan deser

occupying the arid north and northwest near Mongolia and Central Asia, and subtropical forests bein

prevalent in the wetter south near Southeast Asia. The terrain of western China is rugged and elevate

with the Himalaya, Karakoram, Pamir and Tian Shan mountain ranges separating China from South an

Central Asia. In 2003 Goldman Sachs predicted the Chinese economy would take the U.S. economy i

2041.

Flag National Emblem

http://en.wikipedia.org/wiki/Flag_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Flag_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/National_Emblem_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/w/index.php?title=File:National_Emblem_of_the_People%27s_Republic_of_China.svg&page=1http://en.wikipedia.org/w/index.php?title=File:Flag_of_the_People%27s_Republic_of_China.svg&page=1http://en.wikipedia.org/wiki/National_Emblem_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Flag_of_the_People%27s_Republic_of_China

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2) Economy - overview

Since the late 1970s China has moved from a closed, centrally planned system to a more market-orient

one that plays a major global role - in 2010 China became the world's largest exporter. Reforms began with th

phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fisc

decentralization, increased autonomy for state enterprises, creation of a diversified banking system

development of stock markets, rapid growth of the private sector, and opening to foreign trade and investmen

China has implemented reforms in a gradualist fashion. In recent years, China has renewed its support for stat

owned enterprises in sectors it considers important to "economic security," explicitly looking to foster global

competitive national champions.

The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfo

increase in GDP since 1978. Measured on a purchasing power parity (PPP) basis that adjusts for pric

differences, China in 2010 stood as the second-largest economy in the world after the US, having surpasse

Japan in 2001. The dollar values of China's agricultural and industrial output each exceed those of the US

China is second to the US in the value of services it produces. Still, per capita income is below the wor

average.

The Chinese government faces numerous economic challenges, including:

(a) Reducing its high domestic savings rate and correspondingly low domestic demand;

(b) Sustaining adequate job growth for tens of millions of migrants and new entrants to the work force;

(c) Reducing corruption and other economic crimes;

(d) Containing environmental damage and social strife related to the economy's rapid transformation.

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3) GDP and its Growth Rate

Gross domestic product (GDP) is the market value of all final goods and services produced within a country in

given period of time. This measure of national income and output found by U.S.A. in the 1930 and Man

Country follow this.

GDP growth rate

As of 2012, China has the world's second-largest economy in terms of nominal GDP, totalin

approximately US$7.298 trillion according to the International Monetary Fund (IMF). However, China

2011 nominal GDP per capita of US$5,184 puts it behind around ninety countries (out of 183 countri

on the IMF list) in global GDP per capita rankings

the growth of the first quarter was 8.1 percent, and 7.6 percent for the second quarter of 2012

Real GDP growth

YEAR 2011 2010 2009 2008 2007 2006 2005 2004

%

GWT

9.2 10.4 9.2 9.6 14.2 12.7 11.3 10.1

Sectors Contribution to GDP (2011)

o Agriculture: 10.1%o Industry: 46.8%o Services: 43.1%

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4) Import Export Data

The total value of imports and exports in the first half of 2012 was 1,839.84 billion US dollars, a yea

on-year growth of 8 percent. The total value of exports was 954.38 billion US dollars, up by 9.2 percent; an

that of imports was 885.46 billion US dollars, up by 6.7 percent. The trade surplus was 68.92 billion US dollars

Exports Data

Table data For Year 2011

------------------------ production consumption Exports Imports

Electricity(kWh) 4.604 trillion 4.693 trillion 19.06 billion 55.45 billion

Oil (bbl/day) 4.073 million 9.4 million 506,500 5.08 million

Natural gas

(billion cu m)

102.5 129 billion cu m 3.21 billion 30 billion

Exports - commodities

Electrical and other machinery, including data processing equipment, apparel, textiles, iron an

steel, optical and medical equipment

Exports

$1.898 trillion (2011 est.)

$1.578 trillion (2010 est.)

Export and import growth

MONTH Jan12 May12 Apr12 Mar12 Feb12 Jan12 Dec11

Import 6.3 12.7 0.3 5.3 39.6 -15.3 11.8

Export 11.3 15.3 4.9 8.9 18.4 -0.5 13.4

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Export volume of goods and services (% change)( Following Graph)

In Above Chart Export is suddenly decrease Because Of recession in worlds powerful econom

i.e. U.S.A. and U.S.A. is major importer of chinas goods and services

Exports - partners

US 17.7%, Hong Kong 14.1%, Japan 7.8%, South Korea 4.4%, Germany 4% (2009)

Imports$1.743 trillion (2011 est.)

$1.327 trillion (2010 est.)

Imports - commodities

Electrical and other machinery, oil and mineral fuels, optical and medical equipment, metal ore

plastics, organic chemicals

Imports - partners

Japan 11.2%, South Korea 9.3%, US 7%, Germany 5.3%, Australia 4.7% (2009)

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Import volume of goods and services (%) change) (Following Graph)

In Above Chart import is suddenly decrease Because Of recession in worlds most of economi

But china not make zero import because china is former country on population so some bas

need which is essential for people to live(wheat and drugs) this good and services import is n

reduce during recession period.

5) Employment Level

Labor force

795.5 million

Note: by the end of 2011, population at working age (15-64 years) was 1.0024 billion (2011 est .)

Labor force - by occupation

Agriculture: 36.7%

Industry: 28.7%

Services: 34.6% (2008 est.)

Unemployment rate

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Unemployment rate (%)( Following Graph)

Note: Registered urban unemploy ment, which excludes private enterprises and migrants , was 4.1% in 2010

6) Flow of Money i.e. FDI

Actual FDI inflows (in billions of dollars, MOFCOM measure~)

YEAR 2010 2009 2008 2007 2006 2005 2004

VALUE 105.7 90.0 92.4 74.8 63.0 63.3 60.6

Stock of direct foreign investment - at home

$776 billion (31 December 2011 est.)

$578.8 billion (31 December 2010 est.)

Stock of direct foreign investment - abroad

$322 billion (31 December 2011 est.)

$317.2 billion (31 December 2010 est.)

7) World Image of China

China Is Member of varies world wild organizations which are as following:-

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Member ofInternational Monetary Fund.(IMF)Member ofWorld Health Organization (WHO).

Member ofWorld Trade Organization (WTO).

Permanent Member ofSecurity Council.

Member ofthe United Nation.

Member ofAsia-Pacific Economic Cooperation (APEC)

Dialogue Partners of Association of Southeast Asian

Nations (ASEAN)

8) Inflation Related Numerical Data

Inflation rate5.4% (2011 est.)

3.3% (2010 est.)

Inflation rate (consumer prices)(%)( Following Graph)

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9) Monitory Policy

Budget

Revenues: $1.646 trillion

Expenditures: $1.729 trillion (2011 est.)

Taxes and other revenues

23.6% of GDP (2011 est.)

Budget surplus (+) or deficit (-)

-1.2% of GDP (2011 est.)

Public debt

43.5% of GDP (2011)

43.5% of GDP (2010)

Note: official data; data cover bot h central government debt and local government debt, which China's National Audit Office estimat ed

RMB 10.72 trillion (approximately US$1.66 trillion)in 2011; data exclude policy bank bonds, M inistry of Railway debt , China Asset Managem

Company debt, and non-performing loans

Central bank discount rate

2.25% (31 December 2011 est.)

3.25% (31 December 2010 est.)

Commercial bank prime lending rate

6.56% (31 December 2011 est.)

5.81% (31 December 2010 est.)

In January2012 reserve ratio change: - the current level is 16% for big banks and 14% for smaller one

After the hike the new levels will be 16.5% and 14.5% respectively for big banks and small banks.

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Bank interest rates(2012)- One-year Yuan deposit rate 3.00 pct

- One-year Yuan lending rate 6.00 pct

Reserves of foreign exchange and gold

$3.236 trillion (31 December 2011 est.)

$2.895 trillion (31 December 2010 est.)

10) Measures of the Money Stock

By the end of June, the balance of broad money (M2) was 92.50 trillion Yuan, a year-on-year growth 13.6 percent

the balance of narrow money (M1) was 28.75 trillion Yuan the balance of cash in circulation (M0) was 4.93 trillion Yuan The amount of outstanding deposits was 88.31 trillion Yuan

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11) Bibliography

Data collectors use some websites and book for perceive authentic and reliable data.

Websites:-

http://en.wikipedia.org/wiki/China#Economy

http://www.gtig.com/en/news-view-1898.aspx

http://www.stats.gov.cn/english/pressrelease/t20120713_402817907.htm

http://219.235.129.58/clicksortall.do

http://www.reuters.com/article/2012/07/13/china-economy-data-idUSL3E8IC2SA20120713

http://www.imf.org/external/country/CHN/index.htm?pn=0

http://www.nationmaster.com/country/ch-china/eco-economy

http://factsanddetails.com/china.php?itemid=376&catid=9&subcatid=58#00

http://www.fas.org/sgp/crs/misc/96-816.pdf

Book:-

Principles of Economics, 6E

By N. Gregory Mankiw

http://en.wikipedia.org/wiki/China#Economyhttp://en.wikipedia.org/wiki/China#Economyhttp://www.gtig.com/en/news-view-1898.aspxhttp://www.gtig.com/en/news-view-1898.aspxhttp://www.stats.gov.cn/english/pressrelease/t20120713_402817907.htmhttp://www.stats.gov.cn/english/pressrelease/t20120713_402817907.htmhttp://219.235.129.58/clicksortall.dohttp://219.235.129.58/clicksortall.dohttp://www.reuters.com/article/2012/07/13/china-economy-data-idUSL3E8IC2SA20120713http://www.imf.org/external/country/CHN/index.htm?pn=0http://www.imf.org/external/country/CHN/index.htm?pn=0http://www.nationmaster.com/country/ch-china/eco-economyhttp://www.nationmaster.com/country/ch-china/eco-economyhttp://factsanddetails.com/china.php?itemid=376&catid=9&subcatid=58#00http://factsanddetails.com/china.php?itemid=376&catid=9&subcatid=58#00http://www.fas.org/sgp/crs/misc/96-816.pdfhttp://www.fas.org/sgp/crs/misc/96-816.pdfhttp://www.fas.org/sgp/crs/misc/96-816.pdfhttp://factsanddetails.com/china.php?itemid=376&catid=9&subcatid=58#00http://www.nationmaster.com/country/ch-china/eco-economyhttp://www.imf.org/external/country/CHN/index.htm?pn=0http://www.reuters.com/article/2012/07/13/china-economy-data-idUSL3E8IC2SA20120713http://219.235.129.58/clicksortall.dohttp://www.stats.gov.cn/english/pressrelease/t20120713_402817907.htmhttp://www.gtig.com/en/news-view-1898.aspxhttp://en.wikipedia.org/wiki/China#Economy