1. Group 4 Day 5 2015.8.7 1

2. 2 China’s fast growth has depended on exports and investment. The old export driven economy since its interception in 1991 is moving inward towards a consumption-led economy. Have a position of global power and infuence. China has become the second largest economy in the word. But investment and export based - growth is no longer sustainable. It has caused a lot of inside problem in the economy structure

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5. 5 What ails China’s political economy? FYPs(Five-Year Plan) have carried as much weight and significance as the 12th (2011–2015). Will the leader shall put needed policital capital to reach its set target? Boost individual citizens’ welfare and increase wage. The rich and poor gap has been widened in the last two decades. Now one of the aims of the Chinese Govt is to resdistribute the income between the rich and the poor, between the employees and the coporates. The 12th FYP proposes measures to establish a more rational balance between growth and sustainability, production and consumption.

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7. Chaos triggered from a small fire like crisis in 2007 starting from the pouring money into real estate causing the financial freezing in America, leading to global crisis in 2008 China has great burden of public debt. The situation become worse when Kaisa and Baoding Tianwei among biggest corporations collapsed. The first Govt corp went bankcrupt caused by debt. This is considered as a negative result of intensive investment of Chinese Govt during the last two decades. 7 Caixin PMI falling down to 48.2 below the standard of 50, lowest in 15 months. No new order. Automobile sector slown down in the summer break. In July 2015, stock market witnessed the deepest falling since 2009.

8. 8 Rebalancing China’s Economy?

9. 9 P1: The reorientation of the economy away from state-led, capital intensive investment towards private consumption Four pillars in economic reforms

10. 10 P2: Lowering the economy's dependence on credit-fuelled growth

11. P3: The implementation of policies that will allow markets to play a decisive role, to scale back on the government's role in the economy, and to enhance property rights P4: Ensuring that short-term growth does not fall substantially below the government's target of around 7%.

12. More rational balance

13. 13 Impact of Chinese rebalancing Commodities supplier: Venezuela, Cuba, Peru, Brazil, Uruguay, Chile, Middle East countries, South Africa…

14. Investment (geographical production shift) and trade opportunities for South East Asia and India

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