China “Our Friends of the Orient” Ryan Logas, Brian Butler, Pamela Ow, Michael Rice, and Steven Daines Background The Future Current Situation International Aspects Special Problems

Background The Future Current Situation International Aspects Special Problems Samurai's in Space A Brief History of China Population People Political

Background The Future Current Situation International Aspects Special Problems China’s Economic Transformation Communist Centrally Planned To Bureaucratic Market Economy

Background The Future Current Situation International Aspects Special Problems Goals for Economic Reform change the mechanism of resource allocation market plays a critical role in the allocation of resources

Background The Future Current Situation International Aspects Special Problems Deng Xiaoping General Secretary of Communist Party of China from Chairman of the Central Military Commission from

Background The Future Current Situation International Aspects Special Problems Jiang Zemin General Secretary of the Communist Party of China from 1989 to 2002 Chairman of the Central Military Commission from 1989 to 2004.

Background The Future Current Situation International Aspects Special Problems Hu Jintao General Secretary of Communist Party of China from 2002-Present President of the People’s Republic of China from 2003-Present

Background The Future Current Situation International Aspects Special Problems Improvements since Deng Economic Freedom Economic Wealth Chinese people have more political power Foreign trade and investments Legal reforms initiated

Background The Future Current Situation International Aspects Special Problems Improvements since Deng China renewed its membership with the IMF and the World Bank. China gained admission to the WTO, and officially joined on December 11, 2001

Background The Future Current Situation International Aspects Special Problems At Present Reform of state-owned enterprises (SOEs) has been far from satisfactory the old system (CCP) maintains its influence Gradual improvement continues to impede the establishment and perfection of the new market economic system

Background The Future Current Situation International Aspects Special Problems Current Problems failure to carry out market-oriented reforms ensure that growth rates are sustainable over a long period Prevent hard-landing

Background The Future Current Situation International Aspects Special Problems Hard-Landing Impact Asian Economies America Europe

Background The Future Current Situation International Aspects Special Problems CHINA’S BOOM third-largest producer of manufactured goods in the world biggest building boom in history status in the international economic and trading system steadily advancing international recognition gain

Background The Future Current Situation International Aspects Special Problems International Aspects Trade Organizations –World Trade Organization –Asian Free Trade Possibility Trade with China (United States) Investment in China

Background The Future Current Situation International Aspects Special Problems World Trade Organization After 15 years of arduous effort to join, China joined the WTO officially on December 11, 2001 They became the 143 member of the WTO Mike More President of the WTO said “International economic cooperation has brought about this defining moment in the history of the multilateral trading system.” China will provide non-discriminatory treatment to all WTO Members. All foreign individuals and enterprises, including those not invested or registered in China, will be accorded treatment no less favourable than that accorded to enterprises in China with respect to the right to trade. price controls will not be used for purposes of affording protection to domestic industries or services providers.

Background The Future Current Situation International Aspects Special Problems Asian Free Trade Possibility A region-wide free-trade area is a realistic goal, an Asian Development Bank (ADB) official said Domestic economic issues make up a key impediment to a common Asian market and thus it would be "very difficult for them to fully open up their markets."

Background The Future Current Situation International Aspects Special Problems Trade with China : 2006 All Figures are reported in millions of dollars MonthExportsImportsBalance Jan 20063, ,910.9 Feb 20064, , ,839.5 March 20064, , ,570.7 April 20064, , ,033.5 May 20064, , ,711.6 June 20064,347024, ,705.4 July 20065, , ,574.9 Total30, , ,346.5

Background The Future Current Situation International Aspects Special Problems

Background The Future Current Situation International Aspects Special Problems Investment in China China fast-growing economy Capital markets have proven disappointing for foreign investors Local stock markets are very volatile Only few investors are allowed to invest by the government

Background The Future Current Situation International Aspects Special Problems What are some problems facing china?

Background The Future Current Situation International Aspects Special Problems China needs to overcome Trade imbalances Lack of natural resources Poverty

Background The Future Current Situation International Aspects Special Problems Trade Imbalance Imbalance between production and consumption Excess production exported to United States Deficit spending by united states Recession would cause china to have more than they can consume Non-serviceable loans

Background The Future Current Situation International Aspects Special Problems Lack of Natural Resources Unsustainable rate of consumption Available water is 1/3 world Average All concentrated in Northern China Environmental damage Pricing policies

Background The Future Current Situation International Aspects Special Problems Poverty Cut off from market system Rural communities Ethnic minority

Background The Future Current Situation International Aspects Special Problems Important Issues for Future Growing Economy Trade Imbalance Housing Bubble Energy Environment

Background The Future Current Situation International Aspects Special Problems Growing Economy Raging Economy –Municipalities are ignoring national officials

Background The Future Current Situation International Aspects Special Problems

Background The Future Current Situation International Aspects Special Problems Trade Imbalance

Background The Future Current Situation International Aspects Special Problems Housing Bubble Skylines are forming almost overnight

Background The Future Current Situation International Aspects Special Problems Energy in China 80% of China’s electricity comes from coal. A Chinese coal miner

Background The Future Current Situation International Aspects Special Problems Three Gorges Dam

Background The Future Current Situation International Aspects Special Problems Environment in China Traffic in Beijing

Background The Future Current Situation International Aspects Special Problems

Background The Future Current Situation International Aspects Special Problems What is your future?