China sector study_mba_INFRASTRUCTURE MANAGEMENT(UPES)

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CHINA SECTOR STUDY MBA- Infrastructure Ports & Shipping Road ways Railways Metro & Light rail Water & Waste Real Estate & Public housing Public Health Logistics Power Airport Telecommunication Uday Anurag Jha T Pratap Reddy Kaushik Dey Amit Rahul Reddy Girija Sahu Ravi Kiran Hemanht Saurabh Sangeetha

Transcript of China sector study_mba_INFRASTRUCTURE MANAGEMENT(UPES)

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CHINASECTOR STUDYMBA- Infrastructure

Ports & Shipping Road ways Railways Metro & Light rail Water & Waste Real Estate & Public housing Public HealthLogistics PowerAirportTelecommunication

— Uday— Anurag Jha— T Pratap Reddy— Kaushik Dey— Amit— Rahul Reddy— Girija Sahu— Ravi Kiran— Hemanht— Saurabh— Sangeetha

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China Sector Study - Mba - IFA 2

• The People's Republic of China is the second-largest country in the world by land area after Russia

• Third- or fourth-largest by total area, after Russia, Canada China's total area is generally stated as being approximately 9,600,000 km2

• China has the longest combined land border in the world, measuring 22,117 km• China borders 14 nations, more than any other country except Russia, which also borders 14• China extends across much of East Asia, bordering Vietnam, Laos, and Burma in Southeast Asia• India, Bhutan, Nepal and Pakistan in South Asia• Afghanistan, Tajikistan, Kyrgyzstan and Kazakhstan in Central Asia• Russia, Mongolia, and North Korea in Inner Asia and Northeast Asia.• Additionally, China shares maritime boundaries with South Korea, Japan, Vietnam, and the

Philippines

General Introduction

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China is the world’s fourth largest country (after Russia, Canada and US)

POPULATION: More than 1.3 billion people as of mid-2011

CAPITAL: Beijing

LANGUAGE: The official language is Mandarin, but there’s also lots of different local dialects

Currency: Renminbi (RMB)

CLIMATE: extremely diverse, ranging from tropical in the south to subarctic in the north.

HIGHEST POINT: Mount Everest 8,850m (world’s tallest mountain)

NATURAL HAZARDS: frequent typhoons (about five per year along southern and eastern coasts), floods, earthquakes.

China Facts

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• The Chinese language has no alphabet and contains thousands of characters.

• Chinese children learn about 2,000 characters by the time they are ten.

When they leave college they will know between 4,000 and 5,000 characters

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• Ice cream was invented in China around  2000BC when the Chinese packed a soft milk and rice mixture in the snow.

• China is the homeland of tea

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• Paper was first invented in China in 105 AD. It was a closely guarded secret and didn’t reach Europe until the 8th century.

• China makes nearly 40% of the world’s mobile phones and laptops and nearly 50% of its cameras and shoes

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• The territory of China lies between latitudes 18° and 54° N, and longitudes 73° and 135° E.

• In the east, there are extensive and densely populated alluvial plains, while on the edges of the Inner Mongolian

• plateau in the north, broad grasslands predominate.

• Southern China: Dominated by hills and low mountain ranges

• Central-east : China's two major rivers, the Yellow River and the Yangtze River.

• Other major rivers: Xi, Mekong, Brahmaputra and Amur

• West: Major mountain ranges, most notably the Himalayas.

• The world's highest point, Mount Everest (8,848m), lies on the Sino-Nepalese border.

• China's climate is mainly dominated by dry seasons and wet monsoons, which lead to pronounced temperature differences between winter and summer.

Geography and climate

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• A giant panda, China's most famous endangered and endemic species, at the Chengdu Research Base of Giant Panda Breeding in Sichuan

• China is one of 17 megadiverse countries lying in two of the world's major eco zones

• China has over 34,687 species of animals and vascular plants, making it the third-most biodiverse country in the world, after Brazil and Colombia.

• China is home to at least 551 species of mammals

• 1,221 species of birds, 424 species of reptiles, 333 species of amphibians

• Endangered wildlife is protected by law, and as of 2005, the country has over 2,349 nature reserves, covering a total area of 149.95 million hectares, 15 percent of China's total land area.

• China has over 32,000 species of vascular plants, and is home to a variety of forest types.

• Cold coniferous forests predominate in the north of the country, supporting animal species such as moose and Asian black bear, along with over 120 bird species.

Biodiversity

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• In recent decades, China has suffered from severe environmental deterioration and pollution.

• While regulations such as the 1979 Environmental Protection Law are fairly stringent, they are poorly enforced, as they are frequently disregarded by local communities and government officials in favour of rapid economic development.

• Urban air pollution is a severe health issue in the country; the World Bank estimated in 2013 that 16 of the world's 20 most-polluted cities are located in China.

• China is the world's largest carbon-dioxide emitter.

• The country also has water problems. Roughly 298 million Chinese in rural areas do not have access to safe drinking water and 40% of China's rivers had been polluted by industrial and agricultural waste by late 2011.

• This crisis is compounded by increasingly severe water shortages, particularly in the north-east of the country.

Environmental issues:

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• World's leading investor in renewable energy commercialization, with $52 billion invested in 2011.

• It is a major manufacturer of renewable energy technologies and invests heavily in local-scale renewable energy projects.

• By 2009, over 17% of China's energy was derived from renewable sources.

• Most notably hydroelectric power plants, of which China has a total installed capacity of 197 GW.

• In 2011, the Chinese government announced plans to invest four trillion yuan (US$618.55 billion) in water infrastructure and desalination projects over a ten-year period, and to complete construction of a flood prevention and anti-drought system by 2020.

• In 2013, China began a five-year, US$277-billion effort to reduce air pollution, particularly in the north of the country.

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Political system:

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• 2.3 million active troops, the People's Liberation Army (PLA) is the largest

standing military force in the world• commanded by the Central Military Commission (CMC)• The PLA consists of the People's Liberation Army Ground Force (PLAGF), the

People's Liberation Army Navy (PLAN), the People's Liberation Army Air Force (PLAAF), and a strategic nuclear force, the Second Artillery Corps.

• According to the Chinese government, China's military budget for 2014 totalled US$132 billion, constituting the world's second-largest military budget.

• As a recognized nuclear weapons state, China is considered both a major regional military power and a potential military superpower.

• • China has developed or acquired numerous advanced missile systems

including anti-satellite missiles, cruise missiles and submarine-launched nuclear ICBMs.

• According to the Stockholm International Peace Research Institute's data, China became the world's third largest exporter of major arms in 2010–14, an increase of 143 per cent from the period 2005–09.

Military:

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• The rapid rise of China as a major economic power within three decades is one of the greatest economic success stories in modern times.

• From 1979 (when economic reforms began) to 2014, China’s real gross domestic product (GDP) grew at an average annual rate of nearly 10%

• The World Bank estimates that from 1981 to 2010, 679 million people in China were raised out of extreme poverty.

Economic history and growth• As of 2014, China has the world's second-largest economy in terms of nominal GDP,

totalling approximately US$10.380 trillion according to the International Monetary Fund

• If purchasing power parity (PPP) is taken into account, China's economy is the largest in the world, with a 2014 PPP GDP of US$17.617 trillion.

• In 2013, its PPP GDP per capita was US$12,880, while its nominal GDP per capita was US$7,589.

• Both cases put China behind around eighty countries (out of 183 countries on the IMF list) in global GDP per capita rankings.

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• China’s rapid economic growth has led to a substantial increase in bilateral commercial ties with

• the United States.

• According to U.S. trade data, total trade between the two countries grew from $5 billion in 1980 to $592 billion in 2014.

• China is currently the United States’ second-largest trading partner, its third-largest export market, and its largest source of imports.

• Many U.S .companies have extensive operations in China in order to sell their products in the booming Chinese market and to take advantage of lower-cost labour for export-oriented manufacturing.

• These operations have helped some U.S. firms to remain internationally competitive and have

• supplied U.S. consumers with a variety of low-cost goods.

• Treasury securities (which totalled $1.22 trillion as of February 2015) have enabled the federal

• government to fund its budget deficits, which help keep U.S. interest rates relatively low.

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• Since the introduction of economic reforms, China’s economy has grown substantially faster than during the pre-reform period, and, for the most part, has avoided major economic disruptions.

• From 1979 to 2014, China’s annual real GDP averaged nearly 10% .

• This has meant that, on average, China has been able to double the size of its economy in real terms every eight years.

• The global economic slowdown, which began in 2008, impacted the Chinese economy (especially the export sector).

• China’s real GDP growth fell from 14.2% in 2007 to 9.6% in 2008, and slowed to 9.2% in 2009.

• In response, the Chinese government implemented a large economic stimulus package and an expansive monetary policy.

• • These measures boosted domestic investment and consumption and helped prevent a sharp

economic slowdown in China

China’s Economic Growth and Reforms: 1979-the Present

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• China was a world leader in science and technology until the Ming Dynasty.

• Ancient Chinese discoveries and inventions, such as papermaking, printing, the compass, and gunpowder (the Four Great Inventions), later became widespread in Asia and Europe.

• Chinese mathematicians were the first to use negative numbers.

• However, by the 17th century, the Western world had surpassed China in scientific and technological development.

• Chinese reformers began promoting modern science and technology as part of the Self-Strengthening Movement.

• China has made significant investments in scientific research, with $163 billion spent on scientific research and development in 2012.

• science, mathematics and engineering; in 2009, it produced over 10,000 Ph.D. engineering graduates, and as many as 500,000 BSc graduates, more than any other country.

• China is also the world's second-largest publisher of scientific papers, producing 121,500 in 2010 alone, including 5,200 in leading international scientific journals

Science and technology:

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• Chinese technology companies such as Huawei and Lenovo have become world leaders in telecommunications and personal computing, and Chinese supercomputers are consistently ranked among the world's most powerful.

• China is furthermore experiencing a significant growth in the use of industrial robots; from 2008 to 2011, the installation of multi-role robots in Chinese factories rose by 136 percent.

• The Chinese space program is one of the world's most active, and is a major source of national pride.

• In 1970, China launched its first satellite, Dong Fang Hong I, becoming the fifth country to do so independently.

• In 2003, China became the third country to independently send humans into space, with Yang Liwei's spaceflight aboard Shenzhou 5

• As of 2015, ten Chinese nationals have journeyed into space, including two women.

• In 2011, China's first space station module, Tiangong-1, was launched, marking the first step in a project to assemble a large manned station by the early 2020s.

• In 2013, China successfully landed the Chang'e 3 probe and Yutu rover onto the Moon; China plans to collect lunar soil samples by 2017

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• China has urbanized significantly in recent decades.

• population living in urban areas increased from 20% in 1990 to over 50% in 2014.

• It is estimated that China's urban population will reach one billion by 2030, potentially equivalent to one-eighth of the world population.

• As of 2012, there are more than 262 million migrant workers in China, mostly rural migrants seeking work in cities.

Urbanization:

• China has over 160 cities with a population of over one million, including the seven megacities (cities with a population of over 10 million) of Chongqing, Shanghai, Beijing, Guangzhou, Tianjin, Shenzhen, and Wuhan.

• By 2025, it is estimated that the country will be home to 221 cities with over a million inhabitants.

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China Sector Study - Mba - IFA 19

CHINAINFRASTRUCTURE SECTOR

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• China currently has the largest number of active cell phones of any country in the world, with over 1 billion users by February 2012.

• It also has the world's largest number of internet and broadband users, with over 591 million internet users as of 2013, equivalent to around 44% of its population.

• A 2013 report found that the national average internet connection speed is 3.14 MB/s.[341] As of July 2013, China accounts for 24% of the world's internet-connected devices.

• China Telecom and China Unicom, the world's two largest broadband providers, accounted for 20% of global broadband subscribers.

• China Telecom alone serves more than 50 million broadband subscribers, while China Unicom serves more than 40 million.

• Several Chinese telecommunications companies, most notably Huawei and ZTE, have been accused of spying for the Chinese military.

• China is developing its own satellite navigation system, dubbed Beidou, which began offering commercial navigation services across Asia in 2012,[345] and is planned to offer global coverage by 2020

Telecommunications:

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China’s coastline covers approximately 14,500 km from the Bohai gulf on the north to the Gulf of Tonkin on the south.

Most of the northern half is low lying, although some of the mountains and hills of Northeast China and the Shandong Peninsula extend to the coast.

Low mountains and hills extend more gradually to the coast, and small river deltas are common.

China has three seas:

East china sea

Yellow Sea and

South China Sea.

There are fourteen bays

Coastal Area:

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CHINAPORT AND SHIPPING

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It is a government agencyFUNCTIONS:

• Administers all matters related to maritime and shipping safety,• Supervises maritime traffic safety and security, • Prevention of pollution from ships,• Inspection of ships and offshore facilities, • Navigational safety measures (including Search and Rescue, Aids to Navigation and the

GMDSS), • administrative management of port operations, • Law enforcement on matters of maritime safety law.

• It was also responsible for marine accident investigation.

• It is headquartered in Dongcheng District, Beijing.

• In October 1998, it was formed by the merger of the China Ship Inspection Bureau and the China Port Supervision Bureau into a comprehensive agency of maritime affairs, subordinate to the Ministry of Transport of the People's Republic of China.

The Maritime Safety Administration of the People's Republic

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The twenty-foot equivalent unit (often TEU or teu) is an inexact unit of cargo capacity often used to describe the capacity of container ships and container terminals:

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Industry Analysis & Industry Trends:• Revenue for the Harbour and Port Operations for Freight industry in China is estimated at

$51.2 billion in 2014,

• up 4.1% from 2013, and representing an annualized increase of 7.3% over the past five years to 2014.

• In terms of throughput, China is the largest country for harbour and port operations in the world, with 10.4 billion tons of freight throughput in 2013.

• In 2014, total throughput is estimated at 11.0 billion tons, up 6.3%.

• There are about 851 harbour and port operators in the industry and 39,000 establishments used for freight transportation.

• Although the profitability of industry operators has fallen in recent years, it remains relatively high at 15.9% of revenue in 2014

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What is the Harbour & Port Operations for Freight Industry?

The Harbour and Port Operations for Freight industry in China comprises establishments that provide operational services for freight transportation in harbours and ports. Specifically, these services include loading, unloading, storage and packing of freight, piloting, towing, and parking and logistics for freight ships.

Industry Products:

• Handling services• Stacking services• Tugging services• Piloting services• Other auxiliary services Industry Activities:

• Loading and unloading services for shipping freight in harbours and ports.• Parking and storage services for freight in harbours and ports.• Piloting services for ships in harbours and ports.• Towing services in harbours and ports.• Packing services for water transport freight.• Parking and logistic services for freight ships.

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• Shipbuilding Promote the upgrading of the three main vessel types of bulk vessel, oil tanker and container vessel in according to new international shipbuilding standards.

• Improve the ship equipment industry and loading rate.

• Give priority to the development of large liquefied natural gas (LNG) and liquefied petroleum gas (LPG) vessels, ocean-going fishing vessels, luxury liners, and other high-tech and high-added-value vessels.

• Accelerate the independent design and manufacture of mobile marine drilling platforms, floating production systems, marine engineering work ships, auxiliary ships, and key supporting equipment and systems.

IMPORTANCE for ports and shipping in 12th 5 year plan

• Promote the standardization of vessels for inland water transport and enlarge ports

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Construction of:

• Coal loading ports in northern China, coal transit and storage bases in eastern and southern China.

• Large crude oil handling terminals in Dalian and other ports.

• Large iron ore handling terminals in Ningbo, Zhoushan and other ports.

• container terminals in Shanghai, Tianjin and other ports.

• Construct about 440, 10,000-ton and above deep berths (a place in the water near the shore where a ship stops and stays) .

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China Sector Study - Mba - IFA 29

CHINAROADS SECTOR

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General Introduction

Since the 1990s, the Chinese road industry has grown into the greatest and fastest developing era in history. The scale of road infrastructure is continuing to expand; the completed transport volume has been increasing steadily. Meanwhile, the transport capacity and service quality are improving a great deal, thus forming a good market order to pave the way for the sustainable, coordinated and healthy development of the national economy.

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• Roads in China transport 1.3 billion people and all their supplies.• The total amount of roads has reached 3.7 million kilometers.• The number of motor vehicles has reached more 3 than 168 million.• More than 30 Bus Rapid Transit (BRT) projects are being implemented in

China.• Trolley-Buses provide a portion of the public transit service in 10 Chinese

cities.•  China has built 49,000 miles of expressways.•  China invested $207 billion in road construction and upgrade in 2013.• China is home to 20% of the world's population but still has just 5.6% of its

roads.• The most highly anticipated undertaking is a 50-kilometer six-lane bridge

linking China's southern Guangdong province with Hong Kong and Macau.

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Highway Infrastructure

• China has 60300 kilometres of expressways.• In accordance with technical classification, roads are classified by expressways,

class I, class II, class III, class IV and unclassified roads.• 54,200 kilometres of class I roads 285,200 kilometres of class II roads 374,200 kilometres of class III roads 2,004,600 kilometres of class IV 951,600 kilometres of unclassified roads• China has signed eleven bilateral agreements and three multilateral agreements on

international road transport with neighbouring countries.• 8,647 international road transport vehicles in China.

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The Legal System

• Together with the Highway Law and the Road Traffic Safety Law, the Road Transport Ordinance (RTO) is the key piece of legislation on the Chinese road transport industry.

• It came into force in July 2004.• Its stated aims are to establish order in the transport markets, safeguard

public safety and people’s rights

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Road Transport Ordinance (RTO)

• The RTO enshrines the principle of fair competition between service providers and prohibits restricted or monopolised road transport markets.

• The MOT, representing the State Council, is the authority for the overall administration of road transport.

• The transport departments of local governments are responsible for transport affairs in their respective provinces.

• The RTO also sets out the conditions for the management and operation of road transport.

• It permits foreign investment in road transport and related road transport business.

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International Road Transport• Chinese international road transport started to develop in the early 1990s.• International road transport offers convenience, high efficiency and low cost for the

trans-border mobility of passengers and freight.• It Significantly contributes to the progress of the national economy.• China borders with fifteen neighboring countries including 1. North Korea2. Russia3. Kazakhstan4. Kyrgistan5. Tajikistan6. Afghanistan7. Pakistan

8 Afghanistan9 Pakistan10 India 11 Nepal12 Bhutan13 Burma14 Laos

15 Vietnam16 Hong Kong17 Macau

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Sustainable Development

• Sustainable development of road transport means that road transport should meet the strategic demands of social development.

• The present road transport supply does not satisfy demand, leading to bottlenecks in the integrated transport system.

• Scientific forecasting, advance planning and reasonable decision-making are the fundamental ways to solve the sustainability problems of road transport.

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• In order to implement the policies of the State Council, the Ministry of Transport has issued an official document named “Opinion on Reinforcing Energy Conservation and the Reduction of Emissions in the Transport industry”.

The main contents of this document are as follows:

1. Strong industrial administration

2. Innovation

3. Road infrastructure improvement

4. Industry restructuring

5. Rely on results of research and development

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Conclusion

Road transport, as one of the major transport modes has played a significant role in promoting economic development, trade, tourism, people’s mobility and social progress in general all over the world. It is believed that with mutual effort, tomorrow’s road transport industry will become a major player and contributor to new achievements in China.

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Rail Transport in China

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About china

• It is the world's most populous country, with a population of over 1.35 billion. The PRC is a single-party state governed by the Chinese Communist Party

• Covering approximately 9.6 million square kilometers, China is the world's second-largest country by land area

• China has become one of the world's fastest-growing major economies. As of 2014, it is the world's second-largest economy by nominal total GDP and largest by purchasing power parity (PPP).

• China is a recognized nuclear weapons state and has the world's largest standing army, with the second-largest defense budget

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Rail transport in china

Rail transport is an important mode of long-distance transportation in the People's Republic of ChinaAs of 2014, the country has 120,000 km (74,565 mi) of railways, the second longest network in the world, including 16,000 kilometers (9,942 miles) of high-speed rail (HSR), the longest HSR network in the world.Almost all rail operations are handled by the China Railway Corporation, a state-owned company created in March 2013 from dissolution of the Ministry of Railways.

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Brief

• China's railways are among the busiest in the world. • In 2014, railways in China delivered 2.357 billion passenger trips, generating

1,160.48 billion passenger-kilometers and carried 3.813 billion tons of freight, generating 2.753 billion cargo ton-kilometers

• Driven by need to increase freight capacity, the railway network has expanded with the country budgeting $130.4 billion for railway investment in 2014.

• it has a long term plan to expand the network to 270,000 km (170,000 mi) by 2050

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History • The first railway to be built in China was a 600-meter narrow gauge demonstration line that

a British merchant assembled in Beijing in 1864 to demonstrate rail technology.• The first railroad to enter commercial service was the Woosung Railway, a 9¼-mile railway

from Shanghai to Woosung (modern Shanghai's Baoshan District which opened in 1876. This was also built by the British.

• By 1911, there were about 9,000 km of railroads in China, mostly designed, built, owned and operated by foreign companies.

• The chief engineer of this railway was Zhan Tianyou, who is known as the Father of China's Railway

• In 1945, just after the Second Sino-Japanese War, there were 27,000 km of rail, nearly half of which, 13,000 km, was located in Manchuria.

• The railway to Tibet, one of the highest in the world, was finally completed and opened to the public in 2006.

• Not only has the Chinese railway network expanded in size since 1949, but it has also seen great technological advances.

• Before the 1980s, most of the railways were powered by steam, due to low labor costs and cheap coal prices

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History• However, the first diesel locomotive, the Dongfeng, was introduced in 1959,• During the 1980s and 90s, diesel and electric locomotives gradually replaced

the steam engines on main lines.• From 1990 to 2001, on average some 1,092 km of new railways, 837 km of

multiple-track, and 962 km of electrified railways were opened to traffic increases respectively over the previous 10 years.

• At the end of 2004, railways in operation reached 74,200 km, including 24,100 km of multiple track and 18,900 km of electrified railways.

• Since 1997, train speed has been raised significantly six times. The top speed of express trains increased from 120 km to 200 km per hour, and passenger trains can reach maximum speed of 350 km per hour on some sections of the arterial railways.

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Railway bureaus and management

• The China Railway Corporation assumed most of the assets of the Ministry of Railways and continues to manage the railways at three levels.

I. The national level, II. The subsidiary company level andIII. The station level.

• The National Railway Administration has seven oversight bureaus, based in Shenyang, Shanghai, Guangzhou, Chengdu, Wuhan, Xian and Lanzhou, to oversee these China Railway bureaus.

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Revenues and investments• In 2013, railway transport generated Y605 billion in revenues, an increase of

14.1% from the year before.• To meet growing demand for rail service, the state is making large

investments in rolling stock and infrastructure. In 2013, investments in rail totaled Y808.8 billion, of which Y662.3 billion on rail infrastructure, and Y146.5 billion on rolling stock.

Employment• The railways employed 2,184,400 workers in 2013, an increase of 139,000

from the year before. Worker output averaged Y482,600 per person

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Energy use• In 2014, the railways consumed 16.526 million tons of coal equivalent of energy, a

decrease of 4.6% or 801,000 tons from 2013.•  It took 4.51 tons of coal equivalent to transport one million ton-km of freight

Track network• As of 2014, the length of railways in China totaled 112,000 km (69,594 mi), including

16,000 kilometers (9,942 miles) of high-speed rail (HSR). • China had the third longest railway network in the world, and the longest high-speed

rail network• All provinces and regions are connected by rail except Macau• In 2011, the network length was about 91,000 kilometers (56,545 miles), including

41.1% double tracked (37,000 km) and 46.6% electrified (42,000 km).•  As of 2014 50.8% of the railroad was double-tracked (57,000 kilometers (35,418

miles)) and 58.3% was electrified (65,000 kilometers (40,389 miles)).• The railway network's density was 116.48 km per 10,000 km2

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Track gauge

• Standard gauge: 79,685 kilometers (49,514 mi) 1,435 mm (4 ft 8 1⁄2 in) gauge (2008)

• Meter gauge: 466 kilometers (290 mi) 1,000 mm (3 ft 3 3⁄8 in) (Kunming–Hai Phong Railway)

• Narrow gauge: 3,600 kilometers (2,200 mi) 750 mm (2 ft 5 1⁄2 in) gauge local industrial lines (1998 est.)

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Mainlines

• Sixteen major rail corridors consisting of eight running north–south, called verticals, eight running east–west, called horizontals, connect 81 major cities.

• The 16 mainlines were designated in January 2001, when some 3,980 kilometers (2,470 mi) of the lines were still unbuilt.

• At that time, the existing mainlines accounted 43% of the railroads in the country but carried 80% of the passengers. 

• The last of the vertical mainlines was completed in 2009 and the last horizontal line opened in 2010

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High-speed lines• In the past decade, China has been building an extensive high-speed rail grid

that is overlaid onto the existing railway network. • This grid is composed of eight high-speed rail corridors, four verticals and four

horizontals with a total length of 12,000 km.• Most of the new lines follow the routes of existing trunk lines and are

designated for passenger travel only. • Several sections of the national grid, especially along the southeast coastal

corridor, were built to link cities that had no previous rail connections. • Those sections will carry a mix of passenger and freight. High-speed trains on

passenger dedicated lines can generally reach 300–350 km/h (190–220 mph). • On mixed-use HSR lines, passenger train service can attain peak speeds of

200–250 km/h (120–160 mph). • This ambitious national grid project was planned to be built by 2020, but the

government's stimulus has expedited time-tables considerably for many of the lines

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Stations• Railway stations in China are classified into six classes: special, first, second,

third, fourth and fifth.• A special class station can handle at least 60,000 passengers and 20,000

pieces of baggage, load at least 750 freight carriages or assign at least 6,500 carriages per day.

• A first class station can handle at least 15,000 passengers and 1,500 pieces of baggage, load 350 carriages or assign 3,000 carriages per day.

• A second class station can handle at least 5,00 passengers and 500 pieces of baggage, load 200 carriages or assign 1,500 carriages per day

• . In 2008, there were 5,470 train stations, including 50 special class stations, 236 first-class stations, 362 second-class stations and 936 third-class stations

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Bridges

• The rail network across China's diverse topography makes extensive use of bridges and tunnels.

• In recent years, advances in bridge-building and tunneling techniques have enabled Chinese railroad builders to reduce overall track length and increase train speeds on rail lines through rugged terrain.

• The Yichang–Wanzhou Railway, built from 2003 to 2010 across the karst landscape between Wuhan and Chongqing, has 159 tunnels and 253 bridges, which account for 74% of the railway's total length

• The Beipan River Shuibai Railway Bridge built in 2003  is the world's highest railway bridge

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Tunnels

• The first railroad tunnel was built in 1888 by the Qing Dynasty in Taiwan• As of 2008, there were 6,102 railway tunnels in use in Mainland China

(excluding Hong Kong and Taiwan), including 183 over 3 kilometers (1.9 miles) and seven over 10 kilometers (6.2 miles) in length.

• The Shi-chiu-lin Tunnel near Keelung, 261 metres (856 feet) long, is now a historical landmark

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Passenger transport

• Rail is one of the principal means of passenger transport in China. In 2014, railways delivered 2.357 billion passenger trips and generated 1,160.48 billion passenger-km, compared to 1.456 billion trips and 772.8 billion passenger-km in 2008.

• The sharp increase in the number of train trips taken is driven by the rapid growth of high-speed rail service

• Average trip distance declined slightly from 530 km to 503 km, which shows that train travel is primarily used for long-distance trips.

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Types of classes

• Second class coaches (ZE), with capacity for 83-101, have the most affordable seats on high-speed trains, there are five seats in each row.

• First class coaches (ZY), with capacity for 44-72, have partially reclining plush seats and power outlets, there are four seats in each row.

• Business class coaches (SW), with capacity for 24-56, are found on some high-speed train sets such as the CRH380A and CRH380BL. They have reclining sofa seats with flat screen TVs, power outlets and other amenities. Only available on G trains and some D trains.

• High-speed sleeper carriages (WR), with capacity for 40, have 20 enclosed compartments each with two berths. A few trains have a sleeper deluxe high-speed  (WG), with capacity for 40 and eight compartments that are more spacious. High-speed sleepers are found on some D-class overnight trains

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Military transport

• The People's Liberation Army (PLA) uses the railway system to transport personnel, supplies, conventional and strategic arms.

•  The military used to play a more prominent role in railway development and management.

• The PLA's Railway Construction Corps, which in the 1950-1970s built many of the railroads in the Southwest, became a civilian company in 1984 and is now China Railway Construction Corporation.

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International linkages

• China is a member of the International Union of Railways(UIC). • The country's UIC code is 33.• International passenger train services are available to destinations in:• Kazakhstan, Mongolia, and Russia. • These countries use 1,520 mm (4 ft 11 27⁄32 in) gauge, so there is a break-of-

gauge.• Hong Kong SAR and North Korea. • These use standard gauge.• Vietnam, which uses 1,000 mm (3 ft 3 3⁄8 in), so there is a break of gauge at Hanoi

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China Sector Study - Mba - IFA 58

CHINAMETROS AND LIGHT RAIL TRANSITS

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Today, a total of 23 cities in China have metros tallying 2,735 km, with a further 2,853 km planned, whilst Shanghai and Beijing have now reached second and third place in the rankings for the world’s largest metro networks.

The country opened its first metro line in the capital Beijing in 1969. There was then an 11-year gap until Tianjin was completed in 1980. With economic liberalisation in the 1980s two more cities began to plan metros starting with Shanghai’s first 6.6 km section opened in May 1993, followed by Guangzhou with its 5 km line in June 1997.

China may be the new kid on the metro block since it has seen an explosion in metro construction prompted by the need to tackle its cities’ ever increasing traffic congestion and record-breaking levels of pollution.

Contd…

HISTORY OF METROS

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The sheer scale of investments required for building a modern metro system led the government to impose a ban in 2002 on beginning any new constructions. The interdict could not last for long as the need to address the explosive growth of China’s cities, increasing motorisation and congestion, and worsening pollution forced the government to rethink its strategy and eventually perform a u-turn in 2004.

Metro construction then received a further impetus when Beijing was awarded the Olympics in 2008 and Shanghai the 2010 World Expo.

Since 2004, huge sums have been invested in metro projects, through public-private partnerships (PPP) and build, operate, transfer (BOT) funding schemes, enabling Chinese cities to leapfrog ahead of their global counterparts. Both Shanghai with a 538.8 km system of 14-lines and Beijing with a 16-line 434 km metro now have the largest networks in the world ahead of London (408 km), New York (370km), Seoul (327 km), Moscow (325 km), Tokyo (304 km), Mexico City (226 km), Madrid (224 km) and Paris (215 km).

Contd…

HISTORY OF METROS

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The speed and scale of construction in China is said to be breathtaking and in a league of its own in comparison with metro-building in other parts of the world, whereas most other cities build one line at a time due to the high costs of building in densely populated areas and the engineering resources required. China as a whole, for example, saw 370 km of new lines starting operations in 2013 and a further 490 km opening in 2014. The investment figures for projects are also mind-boggling as they often reach highs of 800bn Yuan or €120bn.   

According to estimates, the number of Chinese cities with more than 1 million inhabitants is expected to increase from 90 to 221 by 2020. 44 of these could top 4 million and six cities are already called megacities with over 10 million inhabitants. With these levels of population growth and worsening road congestion and pollution, if China can maintain its funding levels then new metro construction projects have a bright future ahead of them.

HISTORY OF METROS

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The development of metro infrastructure projects (MIP) has been playing an important role in the economic growth in China through improving urban transportation condition. The economic benefits from MIP in China have been well appreciated. However, concerns on the utility efficiency and the impacts of MIP on social and environmental aspects have been increasingly raised. It is anticipated that a large number of metro infrastructure projects will be built in the near future in China.

Contd…

ECONOMY THROUGH METROS

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There is a need for a method to guide the development of MIP towards achieving better utility efficiency and collective benefits between economic, social and environmental dimensions. Previous studies have provided various methods for evaluating economic performance of MIP, but it appears that there is no existing method for studying the utility efficiency of a metro infrastructure project particularly from sustainable development perspective. This paper presents a model for evaluating the utility efficiency of MIP with reference to the Chinese context, which is called utility efficiency evaluation index (UEEI) model. Population of city (POP), length of Metro systems (LEN), annual ridership of Metro systems (RID), ticket price (FAR) and Gross Domestic Product (GDP) are selected as the variables for developing the UEEI model. The utility efficiency of the 17 MIPs is analyzed by using the data collected from 17 cities in China.

ECONOMY THROUGH METROS

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Trams and trolleybus  in Beijing comprise part of the city's public transit infrastructure. The earliest tram service in Beijing dates to 1899 and street cars were the chief form of public transit from 1924 until the late 1950s until they were replaced by trackless trolleybuses that continue to ply tram routes, drawing power in the same way, from overhead wires. In the 1960s to 1970s, trolleybus buses were among the most important means of surface public transportation in the city and their routes expanded beyond the old city to the inner suburbs. Trolley bus expansion ceased in the 1980s with the growth of city buses with internal combustion engines, but electric trolleybus service has continued on more than a dozen lines and remains an important component of surface public transit in the city. In 2008, tram service returned to Beijing with the introduction of a tourist street car on Qianmen Avenue.

Contd…

HISTORY OF LIGHT RAIL TRANSITS

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The oldest municipal trolley in Beijing dates to 1899 when foreign interests built and operated a 7.5 km tram service between Majiapu and Yongdingmen.

In June 1921, the city government established the Beijing Electric Trolley Joint Stock Company and used company shares to secure a 2 million dollar loan from Banque Franco-Chinoise pour le Commerce et l'Industrie to fund the enterprise.

In July 1930, the 6th Route, began service from Chongwenmen to East Zhushikou.

Contd…

HISTORY OF LIGHT RAIL TRANSITS

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January 1, 1938, the 6th Route Branch Line began operating on the newly built tracks between Tianqiao and Yongdingmen.

Ridership averaged 129,000 per day in June 1942.

By 1943, the city had seven tram routes with a combined length of 46.65 km and 144 street cars in operation.

Contd…

HISTORY OF LIGHT RAIL TRANSITS

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During the Chinese Civil War, tram service diminished. Ridership had fallen to 60,000 to 70,000 per day.

In March 1950, the tramline's ring route from Pinganli through Xisi, Xidan, Tiananmen, Dongdan and Dongsi was restored.

By 1957, the tram service had 250 street cars in operation, reaching an all-time high.

Contd…

HISTORY OF LIGHT RAIL TRANSITS

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HISTORY OF LIGHT RAIL TRANSITS In the 1950s, Chinese petroleum production was limited and trolleybuses like

trams could be powered from electricity generated sources other than oil.

On October 17, 1956, Beijing's first trolleybus made a successful trial run from Xisi to Fuchengmen.

On August 22, 1958, the Beijing People's Congress voted to replace tram service inside the old city with trolleybuses and regular buses.

May 6, 1966, the last car on the tram line between Yongdingmen and Beijing Gymnasium ceased operations, ending tram service in the city until the Qianmen Avenue Street Car began running 42 years later.

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China Sector Study - Mba - IFA 69

CHINAWASTE WATER PRODUCTION, TREATMENT AND USE IN CHINA

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INTRODUCTION Wastewater is liquid waste discharged by domestic residences, commercial properties, industry, agriculture, which often contains some contaminants that result from the mixing of wastewater from different sources

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Waste water production in china• The lack of clean water has always been an issue of environmental

concern all over the world. • This environmental issue is mainly stressed in developing countries

today. • The main sources of water pollution are: industrial (chemical,

organic, and thermal wastes), municipal (largely sewage consisting of human wastes, other organic wastes, and detergents), and agricultural (animal wastes, pesticides, and fertilizers)

• For the past several years, China has been affected with the water pollution crisis. Three examples of wastewater pollution crisis in China are the City of Tianjin, the Chao Lakes and Xian City.

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The water bodies are divided into five classes according to the utilization purposes and protection objectives as per PRC

TYPE(I) is mainly applicable to the water from sources, and the national nature reserves.TYPE(II) is mainly applicable to first class of protected areas for centralized sources of drinking water.TYPE (III) is mainly applicable to second class of protected areas for centralized sources of drinking water, protected areas for the common fishes and swimming areas.TYPE (IV) is mainly applicable to the water areas for industrial use and entertainment which is not directly touched by human bodies.TYPE(V) is mainly applicable to the water bodies for agricultural use and landscape requirement.

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Industrial waste water•   80% of Chinese rivers are polluted by industrial wastewater,

and 90% of rivers that pass through metropolitan areas are polluted.

• In many central and western provinces, only 20 ~ 30 % of treated industry water could meet the government’s releasing standard.

• Less than 40% of the lakes in China could meet type III of the PRC Surface Water Quality Standard, and more than 23% of the lakes do not meet type V.

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Industrial and Domestic waste water

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Present situation of China urban wastewater treatment

China has made dramatic improvement in the perspectives of wastewater treatment facilities and its environment benefits during the implementation of “China’s eleventh five-year plan.

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Unbalanced regional wastewater treatment capacity

Low rate of centralized wastewater treatment and low load rate

End-of-Pipe wastewater treatment

Insustainability: environmental pollution, energy consumption, etc.

Obstacles for industrialization of wastewater treatment

Existing problems in dealing with urban wastewater disposal

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Unbalanced regional wastewater treatment capacity

• According to statistics, among 665 city, 141 of them haven't built wastewater treatment plants, these cities mainly located in Northeast and middle parts of China.

• The reality is that the water environment pollution in these areas is more serious.

• Among 1,600 counties, 72% of it has not built wastewater treatment plants, which caused the treatment rate very low, only 32%, less than half of the urban wastewater treatment capacity; More than 17,000 towns do not have wastewater disposal facilities.

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Low rate of centralized wastewater treatment and low load rate

Though China has increased 65 million tons wastewater emission per day, the urban centralized wastewater treatment rate only increased from 52.95% to 75.25%, still remaining at a lower level.

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• The rate of wastewater reuse is low. In 2009, China urban wastewater reuse rate is only 8.6%.

• Second pollution of sludge was severe. Monitoring data showed that 80% of sludge caused secondary pollution.

• The urban wastewater treatment plants had low efficiency.

INSUSTAINABILITY

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OBSTACLES FOR INDUSTRIALIZATION OF WASTEWATER TREATMENT• The wastewater treatment is not industrialized enough.• Supporting facilities were backward, and the amount of

wastewater sewerage is weak.• The wastewater treatment fee is hard to support

enterprise to run wastewater treatment facilities.

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CONCLUSION• Plant construction in China has been imbalanced, however,

with eastern cities faring better than cities in the northeastern and western regions.

• Without adequate facilities to treat their sewage, cities either release this waste untreated into nearby rivers or dump it onto surrounding farmlands.

• The shortage of high-quality water has become a serious issue in many localities, and water pollution continues to threaten both public health and living standards.

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China Sector Study - Mba - IFA 83

CHINATHE REAL ESTATE AND PUBLIC HOUSING SECTOR

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China's real estate sector has been a significant pillar of China's economy for the last decade.  Demand for new housing has been very strong in major cities as rising incomes has led to a desire by many people to upgrade their housing.  This coupled with massive urbanization which has occurred in China over the last two decades has created an ever growing need for urban housing.  These two factors combined with the fact that Chinese have seen the real estate market as the best place to park their savings over the last decade, especially in high end real estate, has help drive the boom in the China's real estate market.

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HOUSING BOOMIn 2001 the Chinese government rolled out a range of favorable policies to open up the real estate industry so that it might function as a backbone of China's economy. In 2001 investment in real estate totaled RMB624.5 billion, or 17% of aggregate fixed asset investment. This amount and percentage rose to RMB71.8 trillion and 25.3% respectively 2012.

HOUSING PRICESOver the last 10 plus years since the real estate market in China has been opened up has seen soaring home prices as a result of enormous demand coupled with the break neck growth of China's economy and rising wages. For example, home price were on average RMB3,326 per square meter in Shanghai in 2000; they surged to RMB6,385 per square meter in 2004 and well beyond RMB20,000 per square meter in 2012.  This has led to a great amount of concern by policy makers and economists because the price of a regular 90-square-meter unfurnished apartment would be 40-50 times the average annual salary of an average Shanghai resident. While home prices have not only soared in Shanghai but in other major cities as well, but despite this average home prices per square meter in China's 100 largest cities averaged a more reasonable RMB8,700/square meter in 2012.

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CONTAINMENT POLICIESTo rein in the overheated property market, the government has introduced a set of policies, such as limiting the number of homes an individual or household can buy, lifting discounts on mortgage interest rates and imposing property taxes on luxury homes in some cities. The policies have worked to some extent, but it is argued inelastic demand, due to rapid urbanization and a cultural tradition which emphasizes the importance of owning one's own house or apartment when getting married, will keep the industry booming in the long run.

PUBLIC HOUSINGChina plans to build 36 million apartments for low-income earners in the five years through 2015. These cheap apartments will be rented or purchased far below market prices. However, the funding of the construction and the transparency of applicant assessment have faced widespread questions and concerns.

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Housing Reform and the Housing Market in Urban China:

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- Investment in the property market grew 16.2% to RMB7.18 trillion, where investment in residential properties was up 11.4% to RMB4.94 trillion accounting for 68.8% of total investment.

- Floor space started building fell 7.3% to 1.77 billion square meters, including 1.31 million square meters of residential space, down 11.2% from 2011.

- Floor space built grew 7.3% to 994.25 million square meters, including 790.43 million square meters of residential space, up 6.4% from 2011.

- Overall property space sales grew 1.8% to 1.11 billion square meters, including 984.68 million square meters of residential space, up 2% from 2011.

- Property sales revenue grew 10% to RMB6.45 trillion, including RMB5.35 trillion from residential space, up 10.9% from 2011.

- Banks lent RMB1.35 trillion to the property market, including RMB960 billion in personal mortgages, taking the outstanding amounts to RMB12.11 trillion and RMB8.1 trillion respectively as of the end of 2012.

- Land price averaged RMB3,129 per square in Q4 2012, where the price of land commercial, residential and industrial development was RMB5,843, RMB4,620 and RMB670 per square meter respectively.

Key facts for china's real estate market in 2012:

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After nearly 20 years’ development, Chinese real estate has made great achievements, look back this 20 years’ development, we can find the following characters: China real estate industry is gradually moving toward market-oriented. The real estate and capital markets are linked closer. China real estate moves into a rapid developing and rapid growth period. China’s Real Estate's policy is under gradually improving.With China's accession to WTO, China's real estate market will follow the international practice and open toother WTO member countries according to the multilateral negotiations of the commitments. China's real estate market will be further developed, and the trends are mainly in the following areas:With the accelerated urbanization process and urban population increases, a large number of house renovation and real estate secondary market, the housing market still has more room for development.

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• Given the urban population will have more 10 square per person, it will cause to nearly 40 million square meters demanding. Coupled with the accelerated process of urbanization, which will increase the demand for housing

• (about 100 million square meters per year), thus in the next 10 years, China will has a sustained development in housing construction.

• According to some agencies’ survey, the satisfaction rate of China residents’ in housing is under 20%, about 48% of the residents are willing to update their house in the coming 2 to 3 years to improve the living conditions and environment, plus there are a lot of people willing to invest in housing, therefore, the potential demand for housing in China is still quite large.

• After joining WTO, China's real estate market increasingly changed form group consumer dominated to individual consumers dominated. The proportion of individuals purchase will increase, the housing quality will be further improved, the sales cycle will speed up, housing service consumption will have a greater expansion, the total amount of personal loans in housing will increase, and the real estate law will be strengthened.

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• From the preceding data and analysis, we can see that the Chinese real estate market has experienced the stage of germination and rapid development, and now it is still in its growing stage.

• With the improvement of national policies and more matured consumption, the Chinese real estate development

• will enter a relatively mature stage of development, it means the market is beginning to become very competitive, and the competition for customers becomes fierce. On the other hand, under the guidance of national policy, to purchase for the purpose of real estate investment would be reduced.

• These two factors will help the real estate prices to return to a reasonable level.

• But since the China citizen’s rigid requirements for house still exist, Chinese real estate will enter a morecompetitive yet still promising phase. And only those companies who pay much attention to the government policy and customer needs can stay in the market.

Conclusion

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Law Reforms on Land and Real Estate Property :China’s land market and real estate market have been developing concurrently since China’s ‘reform and opening up’ (gai ge kai fang) in 1978. Strictly speaking, China’s does not have a land market. Constitutionally the land ownership belongs to the state in urban areas and the collectives in rural areas. When people talk about China’s land market, they actual refer to China’s land use right market. China’s land market reform and real estate market reform are naturally interlinked given their inherent bondage that real estate property is fixed on land. However, the two concurrent and bound reforms have been proceeding along different tracks in the past three decades. For the land market, the overarching reformist theme is being from non-transferable land use right to transferable land use right; for the real estate property market, the overarching reformist theme is being from public provision and ownership to privatization.

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Land is a particularly important issue in China’s contemporary political and economic context. Public ownership of land is one of the few fundamentalist principles of the CPC. Land reform which was marked by confiscation of private lands for redistribution in rural areas appealed to peasants and played an important role in the CPC’s victory over the Chinese Nationalists (guo ming dang) in the civil war before 1949. Based on the ideology that all land was common property, the large-scale nationalization was carried out after the People’s Republic of China (PRC) was established. For this purpose, the PRC Land Reform Law was announced in June 1950 with a focus on land confiscation and redistribution mainly in rural areas. In the same year, the Regulation on Urban and Urban Fringe Land Reform stipulated that urban land was to become state land and would be managed by city governments. This nationalized urban land system was in force from the early 1950s until the mid 1980s. During the period between the 1950s and the 1980s, China’s urban land system was characterized by three features as summarized by Li (1999)

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The administrative allocation of land: Land was allocated for purposes determined by the administrative authorities. Land users such as the state authorities, army, schools or state enterprises could lodge land use applications to the relevant levels of governments. Land was then granted when the land use application was approved. Land use without charge and compensation: When land was granted through the administrative allocation, no charge or compensation was made for land use. The period of land use was not specified either. Theoretically the users could occupy the land for an unlimited time unless future state construction was going to take place on the same site. No transfer right: Land users had no right to transfer the land through selling, leasing, mortgaging, donating, or exchanging. Constitutionally land could not be transferred in any form. Land had to be returned back to the relevant levels of government agents if land users did not need any particular piece of land, though this seldom occurred.

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• China has made significant law reforms on land and real estate property since its genesis of the ‘reform and opening up’ policy three decades ago.

• These reforms have been centered on the thematic thread of privatization of housing and real estate property ownership, transferability of real estate property and the land use rights in the market.

• They are a giant step liberalizing Chinese land market and real estate market from its planned economy under the Stalinist style of governance.

• China’s law reforms on land and real estate property has been an important facilitator of China’s rapid economic growth and social and political transformation in the post-reform era. However, these law reforms are far from complete yet.

• Fundamental paradoxes exist in its current land and real estate property law system which is still in a transitory state. However, the further the reforms proceed, the closer the reforms will touch upon the core contradiction embedded in Chinese legal and political system: privatization of land vs. public ownership system.

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• Privatization of land is required by the increasingly liberalized market economy – so called ‘Socialist market economy with Chinese characteristics’ in Chinese discourse. However, the public ownership system with public ownership of land as a pivot remains to be the CPC’s ideological fundamentalism though it has been reinterpreted and readjusted constantly.

• Any attempt to essentially solve this problem needs political courage and even boldness as well as creative institutional arrangement, and creative phrasing ‘with Chinese characteristics’. It is not an easy task for Chinese future law reforms to aim at privatization of land.

• However, optimism should be attached to this vision judging from the consensus on the nature of the problem among stakeholders and the CPC’s track record of flexibility in adjusting its ideologies and policies to fit the new socio, economic and political settings.

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INDIAN PERSPECTIVE:Indian companies investing in China:• Indian outward FDI is predominantly a private sector activity. • India has 166 companies (partly or wholly owned) in China, all of them located at the

most developed cities along the coastlines like Guangzhou, Shanghai and Beijing. Majority of the companies lies in high-tech industries, especially in IT/software and pharmaceuticals.

• Most of the Indian companies that enter China are wholly foreign-owned enterprise (WFOE), Equity joint venture (EJV), Contractual or Co-operative joint venture (CJV), foreign investment Joint Stock Company (JSC), and Partnership.

• The past decade has seen a rapid spread of operational networks of Indian MNEs encompassing China. Indian companies choose China not only because of China’s open economy and the bonus its policy brings such as tax incentives but also because of its domestic restraints implemented by Indian government. Most investment takes the form of Foreign Investment Enterprises (FIEs) to cooperate with local partners.

• Indian companies are featured with a mixture of technological adoptive capacity built through several decades and inexpensive brainpower, a seasoned managerial class, and a historically rooted entrepreneurial tradition, through which they gained their competitive advantages.

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China was among the top 20 of India Outward Foreign Direct Investment (FDI), with the ranking of 17th. As reported by India in year 2010, total outward FDI from India was 49030.73 US million dollars and the mainland China’s share was 240.84 US million dollars, accounting for 0.4912% of India’s total investment.

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Indian companies in Beijing:Adani Global infrastructure- Power, Global Trading, Logistics, Energy, Port & SEZ, Mining, Oil & Gas, Agri Business, FMCG products, Real Estate Development.Aptech Worldwide Inc.- IT training Ashapura Minechem Limited- Beijing Representative Office Bank of India- banking Indian Kitchen- Restaurant Services Claris Life sciences Limited- sterile injectable DCM Shriram Consolidated Ltd- Agri business, energy intensive business, value added business, textiles Electrosteel Integrated Limited- Ductile iron pipes, ductile iron fittings, Essar Representative- Steel, representing office FICC-I Representative OfficeGATI- India-centric distribution solutions express distribution and supply chain management solutions Global Supplies- Supply chain management

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Indian companies in Beijing:Infosys Technologies Ltd- Software IT Ispat Industries ltd- iron, steel, mining, energy and infrastructure Jindal Steel & Power Limited - Steel JSW Steel Limited- Steel Mishra Ispat P. Limited- Steel NIIT- IT training ORIND Refractories Limited- MgO-C (MCB) bricks Remfry and Sagar - Property Laws and Corporate Law Services Sarda Energy & Minerals Hong Kong Limited - steel (sponge iron, billets, ingots, TMT bars) & ferro alloys Steel Authority of India Limited- Steel Tata Information Technology Co Ltd.- Consultancy Services TATA Sons Limited - Quality Management Services and Financial Services

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Indian companies in Jiangsu, Zhejiang and Shanghai:Air India- Flight Service Asia Global Exports - fabrics and garments Asiatic Colorchem (India) Ltd.- Chemicals &Pharmaceuticals Berger Paints (China) Co. Ltd.- Wall paints, metal paints, wood finishes, primers, decorative, industrial coating, and others. Bhaiya Fibres Ltd - Safety Apparel Garments Like Boiler Suits, Bib, Longoats.

Bralco Steel Processing (Shanghai) Co. Ltd - Steel Canara Bank - Banking Cognizant Technology- Consulting, application, IT infrastructure and BPO services

Darbar Auto Spare Parts - Industrial V-Belts Vehicle and Spare Parts Trading Auto Spare Parts and Components Trading Ball Bearings

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Darbar Auto Spare Parts - Industrial V-Belts Vehicle and Spare Parts Trading Auto Spare Parts and Components Trading Ball Bearings Dr. Reddy's Laboratories - pharmaceutical Eastman Industries Ltd - A diversified range of bicycles, components and accessories, suitable to both conventional & contemporary bicycles.Evalueserve-Export Knowledge Services- Knowledge Process Outsourcing Gold Hearts Textile Consultants Arts, Crafts, and Gifts - Clothing, Textiles, and Accessories Clothing and Apparel Clothing, Textiles, and Accessories Household Textiles Home and Office, Kitchen Appliances and Kitchenware.Larsen & Toubro Limited - technology, engineering, construction and manufacturing Lucas TVS- Automotive Electrical Systems Lupin Limited- pharmaceutical M/s Bry-Air -Industrial dehumidifiers, air-to-air energy recovery equipment and general tradingKeeping in view the geographical, social and political situations in China and its invitation to FDIs many Indian companies have found themselves into and keeping in view of the reforms brought into the real estate sector there is a scope for the companies to settle and gain the markets.

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CHINAPUBLIC HEALTH

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0

5000

10000

15000

20000

25000

NUMBER OF HOSPITALS MADE IN CHINA DURING 2003-2013

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• According to the graph at hand, over the last decade the total number of hospitals in China had increased significantly from nearly 18,000 in 2003 to about 25,000 hospitals in 2013. As of 2013, the region with the largest number of hospitals in Chinahad been Shandong province with 1,783 hospitals, followed by the Sichuan province with 1,716 hospitals.

• Expenditure for health care provision have taken up a large proportion of people’s incomes in China and increased dramatically over the last 25 years. In 1990, annual health care expenditure per capita in urban areas had amounted to merely 26 yuan, whereas in 2013 more than 1,000 yuan had been attributed to medical costs.

ADDITIONAL INFORMATION REGARDING THE GROWING NUMBERS OF HOSPITALS

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Hospital construction planning, consulting and architectural planning and design.

Building supporting facilities and equipment.

Green energy, environmental protection and energy saving.

Environmental and medical space design and green building materials.

CHINA 2015 - HOSPITAL BUILD & INFRASTRUCTURE PLANNING :-

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• Professional planning and consulting of hospital engineering construction.• Professional planning and consulting of medical technology and process.• Overall planning of hospital construction.• Hospital construction planning and design.

HOSPITAL CONSTRUCTION PLANNING, CONSULTING AND ARCHITECTURAL PLANNING AND DESIGN :-

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• Medical elevator system.• Doors and windows system.• Medical central air conditioning and ventilation system.• Water purification, direct drinking water and sewage treatment system.• Water supply and drainage system.• Medical waste disposal system.• Hospital laundry engineering and equipment.• Generic cabling, high-voltage and low-voltage electricity system.• Power supply and distribution, emergency lighting and fire extinguishing system.• Heating and solar energy equipment.• Solid parking facilities and parking lot management system.• Emergency escape system and equipment.• Hospital electromechanical equipment and special building materials.

BUILDING SUPPORTING FACILITIES AND EQUIPMENT

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• New green photoelectrical technologies and products.• New energy technology and equipment.• Ecological water resource utilization.• Electromechanical equipment energy saving control and transformation.• High efficient resource utilization technology and equipment• Energy-saving technologies and solutions.

GREEN ENERGY, ENVIRONMENTAL PROTECTION AND ENERGY SAVING :-

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• Hospital interior landscape design.• Hospital landscaping and landscape design. • Hospital roof and 3D greening solutions.• Medical building interior decoration.• Overall bathroom and medical sanitary appliance system.• Medical green building materials.

ENVIRONMENTAL AND MEDICAL SPACE DESIGN AND GREEN BUILDING MATERIALS :-

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A pilot project to set up wholly foreign-funded hospitals will be launched in seven mainland cities or provinces as part of reforms to improve services and introduce more competition in the tightly regulated health sector. that is going to establish seven wholly foreign owned hospitals in three cities (Beijing, Tianjin and Shanghai) and four provinces (Jiangsu, Fujian, Guangdong and Hainan). On their face these projects are going to create hospitals where foreign investors can hold all shares in a hospital, more than the 70-76% of shares that investors can hold elsewhere in China (I believe a Caixin article had this number listed at 70%, but I’m including a range, because in some areas that cap was extended, and 76% is the highest number I know of).

RECENT PLANES OF CHINA ?

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China Sector Study - Mba - IFA 112

CHINALOGISTICS

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LOGISTICS

It is simply process of

• Planning

• Implementing

• Controlling

• Flow

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CHINA 2015 :Logistic strategies

China is becoming more mature, self confident country and driving force in the new global economic structure and bringing new challenges to five sectors.

1. Industry express

2. Road freight

3. Air freight

4. Contract logistics

5. International freight forwarding

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China logistic club(clc)

Clc is a network specially set up for the small medium enterprise. Clc is an independent and private organization which also manages African, American and European logistics also. The main purpose of clc is to conduct regular conferences in different cities

through out china to establish business relationship in over seas also.

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Logistic meetings in china

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Active cities Manufacturing is the most important area in china for the retail and consumer

goods industry it is by far the leader in this area. The retail and consumer goods industry has operations across various regions. The regions where business is active in china are mapped as follows

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Logistic parks in china

Three logistic parks1. Pu tuo logistics park

2. Pu dong Air port logistic park

3. Waigaoqiao bonded zone

logistic park actually means, it is a management node which improves logistics efficiency ,flow of business and reduce costs.

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Here are some pictures of logistic parks

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Industry trends

china transportation and logistic industry as a whole remains in the early stages of development. Fragmentation

and intense competition highlight a market in which competitors offers similar and limited services.

Yet chinese microeconomics trends will continue to have a major impact on the industry as transportation and logistics are vital for making the economy tick.How far macroeconomics and industry specific trends will shape the transportation and logistics industry in the next five years successfully.

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CHINAPOWER SECTOR

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Introduction• Chinese electricity industry born in the 19th century.• By 1949, when People’s Republic of China was founded, the country had only 1.85 GW

of installed capacity.• China’s electric power industry has changed since 1990s to become world’s largest

electricity consumer, surpassing United States in 2011.• In April 1996, Electric Power Law was implemented, a major event in China’s power

industry.• Mostly electricity is produced from Fossil Fuels .

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Present scenario• China is ranked no. 1 in electricity production with a capacity of 5398 billion KWh.

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Plant OperationalUnder

Construction Proposed

Thermal Power Plant 49 3

Hydro Power Plant 45 12 9

Nuclear Power Plant 7 5

Wind Power Plant 6 1

Total Power Plant

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Generation

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Thermal Power• China is the largest producer of coal.• Thermal power accounts for 70% of china’s total electricity generation capacity.• 820 GW of electricity is generated from thermal power plants in 2014.• In 2013 total thermal capacity addition is 94 GW, but in 2014 the total thermal

capacity addition is only 48 GW.

Fall of Thermal power Production• China emits most Co2 in the world. It is about 30%.• China wants to reduce carbon emission per unit by 2020.• The four biggest Chinese cities – Shanghai,• Beijing, Tianjin, and Guangzhou exceeds air pollution guidelines by WHO.• Plans not to build new coal plants after 2020.

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Hydro Electric Power• Hydro power is the least cost generation source in China. It serves a major role in

meeting the base load power generation needs of the country.• It is a renewable & clean energy source.• Hydroelectric capacity has grown by over 12% in 2014.• Three Gorges Dam is the largest Hydel power station which include 26 separate 700 MW

generators, totaling 18.2 GW.Nuclear Power• Due to increasing concerns about air quality, climate change and fossil fuel shortages,

nuclear power has been looked as an alternative to coal power in China.• China's National Development and Reform Commission has indicated the intention to

raise the percentage of China's electricity produced by nuclear power from the current 2% to 6% by 2020.

• Long-term plans for future capacity are 200 GW by 2030 and 400 GW by 2050.

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Wind Power• China get more electricity from wind than from nuclear power plants in 2014.

• The electricity generated by China’s wind farms in 2014 is 16% more than the previous year .

• China’s wind power goal is to have 200 GW connected to the grid by 2020

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Transmission & Distribution• Two large monopoly companies are in control of the majority of China's electricity

transmission and distribution activities.1. State Grid Corporation of China (SGCC) – 2002.2. China Southern Power Grid Corporation Limited (CSG) – 2002.

• SGCC controls over 88.0% of China's land area and is expected to sell more than 66.0% of total consumed electricity in China in 2014.

• CSG covers 10.4% of China's land area and will sell an estimated 15.0% of total consumed power.

• The two largest enterprises in this industry, SGCC and CSG, together control about 98% of electricity transmission and distribution activities in China.

• The Electricity Transmission and Distribution industry generates $642.9 billion in 2014.• The State Grid Corporation was involved in a multi-phase smart-grid project for China’s

electrical grid planned for 2011-2015.

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Transmission & Distribution• Key facts about SGCC

1. It is the largest utility in the world.

2. Over 655,131 Km transmission line (AC up to 1000 KV, DC up to ± 800 KV).

3. Over 2,391,620 MVA substation capacity.

• High voltage (HV, under 300 kilovolts), extra-high voltage (EHV, 300 kilovolts to 765 kilovolts), and ultra-high voltage (UHV, 765 kilovolts and up) lines are being installed currently, with at least one 1,000-kilovolt UHV AC or DC line installed annually until 2015.

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Transmission Line Length in China

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UHV Transmission• China’s decision to go for UHV transmission is based on the fact that energy resources are far

away from the load centers.

• To reduce transmission losses to a manageable level, UHV transmission is a logical choice.

• The government plans 8 long-distance UHV lines by 2015 and 15 by 2020.

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Regulator• The National Energy Administration (NEA) serves under the National Development and Reform

Commission (NDRC) as the regulator of power industry in China.

• Its power-related functions include:

1. To organize the formulation of policies and standards related to energy such as coal, oil, natural gas, electricity, new and renewable energy. To guide the energy development in rural area.

2. To be in charge of nuclear power administration, including the proposal and implementation of development planning, access conditions, technical standards; the proposal of suggestions in regard to crucial projects and overall nuclear deployment.

3. To be in charge of energy saving and the comprehensive utilization of resource in energy industry &  to balance energy production and consumption.

4. To supervise the operation of electric power market and to regulate its order. To regulate electricity price and propose price for supplementary services.

5. To be in charge of electric power safety management, reliability management and emergency management.

6. To organize international cooperation in energy by negotiating and signing agreements with foreign energy administration and international energy organizations and by coordinating overseas energy exploration and utilization.

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China Sector Study - Mba - IFA 142

CHINAAVIATION SECTOR

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Introduction• Civil Aviation Administration of China (CAAC), formerly the General Administration of

Civil Aviation of China  is the aviation authority under the Ministry of Transport of People’s Republic of China.

• CAAC oversees civil aviation and investigates aviation accidents and incidents.• As the aviation authority responsible for China, it concludes civil aviation agreements

with other aviation authorities.• The agency is headquartered in Dongcheng District, Beijing.

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• The CAAC does not share the responsibility of managing China's airspace with the Central Military Commission under the regulations in the Civil Aviation Law of the People's Republic of China.

CAAC HEADQUARTERS, BEIJING

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• CAAC was formed on November 2, 1949, shortly after the founding of the People’s Republic Of China, to manage all non-military aviation in the country, as well as provide general and commercial flight service.

• It was initially managed by the People’s Liberation Army Air Force.• CAAC began operating scheduled domestic flights to cities in China in 1949.• In 1962, CAAC began operating international services, initially to other countries in the Communist

Bloc such as the Soviet Union ,Mongolia, North Korea, Burma, Bangladesh, North Vietnam, and Cambodia.• By the mid-1980s, CAAC had long-haul service to the United States, Europe, the Middle East, and Australia, mainly using American Boeing aircraft,

while continuing to use Soviet aircraft on routes to Eastern Europe.

• In 1987, CAAC's airline operations split into 6 separate airlines each named after the geographic region of the location of their headquarters and main operation areas:

1. Air China

2. China Southwest Airlines (merged with Air China in 2002)

3. China Eastern Airlines

4. China Northwest Airlines (merged with China Eastern in 2002)

5. China Southern Airlines

6. China Northern Airlines (merged with China Southern in 2003)

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List of the busiest airports in China• The number of total passengers is measured in persons and includes any passenger

that arrives, depart or travel on transit in every airport in the country.• The number of total aircraft movements is measured in airplane-times and includes

the departures and arrivals of any kind of aircraft in schedule or charter conditions.•  The number of total cargo movements in metric tonnes and includes all the

movements of cargo and mail that arrives or departs from the airport.

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Rank Airport City Serve

d

Passenger

Crafts

Cargo

1 Beijing Capital International Airport

Beijing 8,61,28,313 5,81,952

18,48,251

2 Guangzhou Baiyun International Airport

Guangzho

5,47,80,346 4,12,210

14,54043

3 Shanghai Pudong International Airport

Shanghai 5,16,87,894 4,02,105

31,81,564

4 Shaighai Hongqiao International Airport

Shanghai 3,79,71,135 2,53,325

4,32,176.4

5 Chengdu Shuangliu International Airport

Chengdu 3,76,75,232 2,70,054

5,45,011.2

The 5 busiest airports in China in 2014 ordered by total passenger traffic, according to the CAAC report

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CHINATELECOMMUNICATION SECTOR

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Introduction• China has one of the world’s fastest growing telecommunications markets and operates

the world’s largest fixed (wireline) and wireless telecommunications networks. • There are more than 900 million telephone connections, with 641,230,016 mobile and

340,809,984 fixed line subscribers in the country. Spending on telecom equipment totaled around $16.635 million in 2010, while spending on telecom services was approximately $120.419 million.

• Rates of new subscriber growth and infrastructure investment have slowed the past three years, however. The development of telecommunications has proceeded unevenly throughout the country, with the provinces along the Eastern seaboard containing nearly one-half of China’s telecom users.

• The Chinese telecommunication sector’s growth rate was about 20% between 1997 and 2002.

• China fixed-line and mobile operators have invested an average of US$ 25 Billion on network infrastructure in the last years, which will be more than all western European carriers combined.

• As a result, with 1.3 billion citizens, China owns the world’s largest fixed-line and mobile network in terms of both network capacity and number of subscribers.

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150China Sector Study - Mba - IFA

Market overview• As of March 2012, China has 284.3 million fixed-line subscribers and 1.01 billion mobile

customers• Chinese telecom operators focus their effort on voice. Revenues from data only

account 5%.• New technologies are being deployed to provide differential services. These

technologies include ADSL, wireless LAN technology, IP (Internet Protocol) telephony and services associated with mobile communications such as Short Messaging Service (SMS), Multimedia Messaging Service (MMS), ring tone download etc. 

• Premium SMS connectivity is allowing entrepreneurs and established businesses to profit from revenue taken directly from users' monthly phone bills or pre-paid credit.

• One of the first companies to offer such Chinese Premium SMS connectivity to the world market and to advise on the regulations and requirements involved are mBILL.

• Chinese operators are often cautious in purchasing cutting-edge technologies. Mobile communication, especially Global System for Mobile (GSM) is the most profitable sub sector and reports 46% of all total revenues.

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Current scenario• The Chinese telecom market is the largest in the world in terms of subscribers. The

mobile sector is still expanding at 5%-10% per annum and 3G services have now gained momentum supported by a more mature value chain.

• Confronted with a continuous decline in the fixed-line market, the government has intervened to set aggressive targets for broadband services.

KEY DEVELOPMENTS:Continued strong mobile subscriber growth fast approaching 1.3 billion;3G subscribers accounting for 40% of the mobile subscriber base by end-2014;continued decline in fixed-line telephony subscribers and revenue;non-voice revenue comprising over 50% of total industry revenue;the EU ended its dispute with China over the import of telecommunications equipment;MVNO licences issued by the MIIT.

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Administration and Regulation of Telecom Sector• The State Council is the government body in charge of all legislative issues in China,

including those regarding telecommunications. Regulations and administrative measures issued in 2000 and 2002 lay out the principles and requirements for telecom licensing, interconnection, service standards and charges, network construction, telecom security, and penalties for violating the regulations.

• The Ministry of Industry Information (MII), an part of the State Council, has responsibility for enacting telecom policy. MII also develops equipment standards, issues licenses for the provision of all telecom services, allocates spectrum, develops tariff rates for telecom services, and manages the telecommunications numbering system and Internet domain name registration. Although it functions as the telecom regulator, MII faces inherent conflicts of interest, as it U.S. Department of Commerce | International Trade Administration is charged to foster the development of China’s telecom equipment industry and to oversee Chinese operators that are state-owned.

• State organizations permitted to operate telecommunications networks include the People’s Liberation Army (PLA) and provincial Post and Telecommunications Administrations (PTAs). Under the MII are 30 PTAs that implement MII’s telecom policy.

• In theory, the PTAs have limited influence on the formulation of regional development plans, but in the drive to attract outside investment

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• The telecommunications industry in China is dominated by three state-run businesses: China Telecom, China Unicom and China Mobile.

• The three companies were formed by a recent revolution and restructuring launched in May 2008, directed by Ministry of Information Industry (MII), Nationals Development and Reform Commissions (NDRC) and Minister of Finance. Since then, all the three companies gained 3G licenses and engaged fixed-line and mobile business in China.

Telecom operators

China Unicom

30%

China Telecom

25%China Mobile45%

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Telecom operators• As of 2009, the telecom operators in China are

exclusively Chinese: two fixed-line operators with nationwide licenses - China Telecom and China Unicom - three mobile carriers - China Telecom (CDMA andCDMA2000), China Mobile (GSM and TD-SCDMA) and China Unicom (GSM and WCDMA).

• The State has control and majority ownership of all of them. Most of them are financed in Hong Kong.

• China Mobile was formed out of China Telecom in 2000 and has subsidiary companies in 25 provinces including Hong Kong. It is the leader of the mobile market. By 1998, it controlled 95 percent of China’s mobile market, but it now faces stiff competition from Unicom.

• Today it controls close to 60% of the market. The two firms have engaged in unofficial price wars flouting MII’s recommended tariffs. China Mobile operates GSM networks, has nearly 500 million subscribers.

• China Mobile has transferred all its networks to China Mobile Hong Kong. The company has an alliance with Vodafone. China Mobile acquired China Railcom’s fixed-line assets.

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Overview of Three Carriers’ PTN Deployment and Strategies• PTNs have progressed to the deployment stage, after the significant efforts to construction

3G base station and for the application of all IP services by three domestic carriers. Currently, they focus on IP transport network. China Mobile has taken the first step to make PTN tests, and it is followed by China Telecom and China Unicom. These three carriers are expected to invest more than RMB5.7 billion in the PTN market

• Total PTN market: Budgets of three domestic carriers (China)

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Telecom Equipment MarketThe large U.S. and other foreign vendors have established operations in China, usually joint ventures with Chinese firms, and they work directly with the Chinese carriers to design and sell their products. Smaller firms looking for export opportunities are advised to start with agents and distributors that have the necessary resources, e.g., good connections and technical support. The best sub-sector prospects within the telecommunications sector include: • mobile communications including 3G and value-added service platforms • value-added capabilities for e-mail and web browsers and the ability to download ringing

tones, logos/images, music, videos, games, stock market quotations • broadband access network equipment including wireless LAN, LMDS, and ADSL• operational management systems like BOSS and multiple service platforms • public safety (emergency response) systems

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Revenue of the telecommunications industry in China from May 2014 to May 2015 (in billion yuan)The graph shows the monthly telecommunication industry revenue in China from May 2014 to May 2015. In February 2015, the industry had generated a revenue of about 159 billion yuan

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The Growth Cycle• Take, for example, China’s smartphone and tablet markets. In 2015, the number of operational devices in China is

expected to exceed 900 million—an impressive step up from 700 million in 2014 and a quantum leap from 380 million in 2013, according to the McKinsey report.

• The growth rate may be slowing, but it has triggered a boom for mobile apps and advertising. This market will double in size by 2018 (from $7.1 billion in 2014 to $15.7 billion), according to research by the London-based analysis firm IHS.

• “China already spent $3.8 billion on mobile apps in 2014, making it one of the leading mobile content markets behind the U.S. and Japan, ” says IHS analyst Siyun Zeng. “There is enormous growth ahead.”

• These apps will start in the domestic Chinese market, but the most successful ones are likely to go international, opening global financial opportunities for Chinese firms. A prime example of this phenomenon is the mobile messenger app WeChat—a rival of WhatsApp, an app produced by the Chinese firm Tencent that has attracted more than 400 million users worldwide.

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Challenges in the Telecom MarketAccording to a report by the United States Information Technology Office in Beijing, the telecom market in China faces these challenges:• A saturated market for basic voice and unmanaged data services in major geographies. A telecom

market characterized by undisciplined pricing and promotional tactics and competition among incumbents. The focus is on gaining market share rather than on increasing total market size through added value innovation.

• Generally poor availability of value-added services (VAS) due to limited competition and uncooperative basic network facility providers. This, in turn, reduces incentives for innovation and improved quality of service and constrains the emergence of world-class operating capabilities, stymies the development of partner and customer care management capabilities, and provides little incentive to improve customer service regularly.

• Significant margin and profit pressure in basic services, leading to growing investor concerns and poor shareprice performance. China’s incumbent players remain focused at a basic stage of service deployment despite the growing demand from multinational companies doing business in China for higher quality, value-added enterprise services that, in turn, can create carrier value as market differentiators.

• High levels of regulatory uncertainty and perceived regulatory risk over third-generation (3G) mobile licenses, interconnection rules and charging principles, wireless local loop systems, new licenses, scope of the service classification catalogue, and so on. These regulatory uncertainties greatly deflate share prices and constrain investment by incumbents and new entrants alike.

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THANK YOU !!!