Shanghai by Dmitry Fironov
"China's economy is recovering and is on track to grow at least 8 percent this year, but it's still imbalanced," said Kelvin Lau, regional economist at Standard Chartered Bank in Hong Kong.
"We're still hoping the rest of the economy will recover as well. Simply relying on public investment can't last forever." (World markets drop amid China policy doubts)
What do we know about China's economy?
(The information below comes from Newsweek, 16 October 2009 - 6 Myths About China)
1. China's GDP per person is only $2,000, and much less in rural areas.
2. 40% of Chinese villages have no paved roads to the nearest market.
3. The average successful private business in China has only 30 employees.
4. The private sector controls a little more than half the total economy.
Photo by Chong Fat
5. The government owns more than two thirds of all 'fixed assets' like telecommunications lines, power plants, and real estate.
State-controlled companies make up about 70% of the major stock markets.
6. Most Chinese export goods are merely 'assembled in China' from parts made in South Korea, Taiwan, and other countries.
7. "There is little real innovation or branding ability in China," says Beijing University professor Michael Pettis.
There is weak legal protection for intellectual property and contracts.
Chinese school. Posted to Flickr by pmorgan at http://www.flickr.com/photos/pmorgan/2097067/
The education system reportedly involves too much rote learning rather than creativity.
9. China produces more power from renewable energy than any other nation in the world.
Chinese companies have taken the lead in solar cell production.
www.energyrace.com/
China's green stimulus package is worth $218 billion; this is the largest such package in the world.
10. Some of the rich Chinese want a more American-style capitalist system, with the free market and more private enterprise.
A farmer, Yunnan, China. By Takeaway
However, President Hu Jintao and Premier Wen Jiabao favour:
A. Rather slower growth.
B. Wealth distributed more evenly to poorer rural Western regions.
C. More protection of the environment.
D. Less devotion to the free market.
11. When Lehman Brothers collapsed, China produced a $600 billion stimulus package.
China's economic growth rate is 8%.
"All the stimulus has been concentrated in building new infrastructure and reheating the property sector," says economist Andy Xie.
The Chinese government debt is low compared with Western nations.
Reportedly, the government sector has received around 95% of the stimulus money so far.
http://www.newsweek.com/id/218290
1 comment:
I'm amazed that China has survived so long and didn't fall apart years ago.
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