china’s growth markets

8/13/2019 Chinas Growth Markets

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Reported by: Rovel A. Apiag


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Coastal China

Home to 400 million people of

mercantile and urban culture.

Has been the worlds fastest-

growing economy over the pastdecade


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Formidable problems face by

China

Runaway Inflation

To prevent this problem, thousands of

unproductive and unprofitable state enterprises

that employ millions of workers were dismantled.


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Formidable problems face byChina..

Social tensions

Peasants stream to overcrowded cities where there is no

housing, no health care, and far to few jobs.

Nationwide power struggle has begun in anticipation ofthe octogenarian leaderships passing.


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US trade policy towards China should be based

on the assumptions that by the early years of nextcentury, coastal China might become one of thelargest economic powers in terms of total grossnational product, industrial output , industrial

exports.

China is likely to be the first country where the

balance of payments rather than the balanceof trade is the key to economic relations.


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China may be integrated in to the worldeconomy through services rather than

through trade in goods.

Despite the enormous size of its market-more than a billion people with rapidly rising

incomes - and an insatiable appetite forforeign brands, China will not import Coca-cola and levis.

Instead such products will be manufacturedin china by joint ventures, by franchises, and byalliances.


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Since there is nearly no protection for alicensor or minority partner and little respect forintellectual property rights, a trade policy withchina must establish and safeguard access to

partnership.

Bringing down barriers to the importation ofgoods into China has to be worked on and hard,

but far more important is creating a legal andadministrative framework to enable a foreigner todo business in china as a partner.


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The biggest market opportunities for foreigners

in a fast-growing are not in manufacturing but

in services.

Services needed by China includes:

Education

73 percent literacy rate.

There are barely 1.5 million college studentsin china.


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Chinese university education prepares students forbureaucratic careers that prove more useful forpreventing others from doing that for getting thingsdone.

Chinas university system is one of the worlds mostbackward and is unable to support sustain economicgrowth.

Education

Yearly 40,000 students were dispatched abroad.

Needed solution is a massive and immediateoverhaul of the countrys educational system.


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Health care

Maos flawed vision of a China cared for by

barefoot doctors is as much a travesty today

as it was thirty years ago.

What is needed are experienced contractorswho plan, design, build and manage health

care facilities and train medical staff.


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Financial Services

Chinese financial services are in worseshape than either higher education orhealth care.

Lacks the legal structure for a financialindustry.

Financial institutions are primitive and itspersonal poorly trained.


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Telecommunications and

Information services

The need is so great that it will have to bypass acentury of western technology and leap directly

into the modern wireless forms oftelecommunications

Example, Shortwave telephonetransmission, and microwave and satellitetransmission.


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Transportation

China is blessed with excellent naturalharbour, but few are develop well enough

to handle much traffic or cargo.

Lack of roads and railways to move

goods to the interior.


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The measure of success in trade relations withChina is thus selling services rather than selling

goods.

Free trade is not a possible policy at least notuntil not the enormous surplus population from

the farms has been absorbed in urban societyand urban jobs.

Successful service focused trade policy;

engineering, design, healthcare, education,management and trainings are the ones wherethe emergence of China as a major EconomicPower creates opportunities.


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Chinas estimated population as ofDecember 31, 2012 is1,354,040,000.

Gross Domestic Product rose 7.9 percent

year-over-year in the fourth quarter versusexpectations of a 7.8 percent rise.

The inflation rate in China was recordedat 2.50 percent in December of 2012

china’s growth markets

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