China Economy By Carter, Meghan, Elizabeth, Seamus, Adam, and Jess

●Market based economy ○Supply and Demand ■demand increases>> price increases>> supply increases>> increase competition>> lowers price ●Ex: Ford Focus- over 403,600 sold Type of Economy

Effects of Communism ●During the 1950’s, the communist party was successful in improving the economy, characterized by output of steel, coal, electric power, and cement increasing exponentially ●The period between began a campaign known as “The Great Leap Forward,” which eventually lead to economic decline

Effects of Communism (cont.) ●Economic growth during the Great Leap Forward was held up by farm production. There was barely enough food to keep up with the population growth, as many laborers were busy with steel production ●A famine began in 1958, killing millions

Four Pests Campaign ●Part of the Great Leap Forward was the Four Pests Campaign, a plan to exterminate rats, sparrows, flies, and mosquitoes ●The near-extinction of sparrows lead to an overpopulation of locusts, exacerbating the famine

Importance of Government ●Government explicitly responsible for planning and managing the national economy ●Industrial sector- nearly all China’s manufacturing output is state owned; heavy industries still largely state owned despite the gradual decline of overall industrial capacity ●Urban sector- government sets the prices for key commodities; determine the distribution of investment funds; establish output targets; control financial policy and banking system

Globalization : Outsourcing Jobs ●China’s outsourcing market is growing 30% annually ●Many headquarters have relocated to China as result of this ●Labor is cheaper for companies, reducing the cost for paying workers, increasing the profit for the company

Globalization: Acquiring Natural Resources ●China, though a significant producer of rare earth minerals, does not contain significant sources of oil or natural gas. ●Chinese companies, backed by the chinese government have attempted to meet demand for oil by purchasing sources across the world. ●Chinese companies have purchased local companies and oil sources in North America, Africa, and Asia.

China in Global Economy Global Economy- World-wide economic activity between various countries that are intertwined and thus can affect other countries either positively or negatively. ●2nd largest economy o Based on GDP ($9,184,997 in 2013), second to the US ($16,768,050) -Int. Monetary Fund ●Member of World Trade Organization (WTO) o Large market for selling their goods o Invests in global markets

China in Global Economy cont... ●#1 exporter in the world in 2013, exporting US$2.21 trillion worth of goods Electronic equipment ($561.7 billion) Machines, engines, pumps ($383.3 billion) Knit or crochet clothing ($96.8 billion) Furniture, lighting, signs ($86.4 billion) Medical, technical equipment ($74.7 billion) ●Not a huge “Global Power” now, but growing fast o Still a “developing country”

Works Cited Eckstein, Alexander. "On the Economic Crisis in Communist China." Global. Foreign Affairs, n.d. Web. 15 Oct "Economy Watch - Follow The Money." China Economy. N.p., n.d. Web. 15 Oct "The Four Pests." U.S National Library of Medicine. U.S. National Library of Medicine, 21 Apr Web. 15 Oct "Top 10 Best-selling Cars in Chinese Mainland." [10]- Chinadaily.com.cn. N.p., n.d. Web. 15 Oct

Works Cited Cont. Wong, Sterling. "What's Behind China's Global Oil and Gas Buying Spree? And Who's Next?" Minyanville. N.p., n.d. Web. 15 Oct and/3/22/2013/id/48857?refresh=1http:// and/3/22/2013/id/48857?refresh=