The rise of Chinese economy

1. Description

Since the open policy Deng xiao ping launched in late 1970s, China has grown in economy and political power. In 2001, China joined the WTO. This gave China more opportunities in terms of market expansion and favorable trade terms. From the viewpoint of both supply and demand, China has a potential to be the number 1 country; It has 1.3 billion people with the per capita income of $5,000 in 2003 and it is still growing. It is producing low price products to be exported to other countries with the help of its vast labor forces. Annual rate of economic growth was expected 9% for the last 2 decades

2. Enablers

• China joint into the WTO:
• Good economic performance in China:attract foreign investors and enable Chinese companies cooperate with foreign companies
• Global economic is not at booming:foreign investors intend to generate more money in China
• More and more Chinese going abroad:
• Huge development of telecommunication technology:
• Good experience of those early investors in China:
• More and more mature law system in China:Both Chinese and foreign investors are well protected by the law and Chinese companies are getting more and more experience withe internal sue.
• Many big worldwide events take place in China:

3. Inhibitors

• Economic unequality between regions
• Political oppression
• The North Korea nuclear crisis
• The rivalry with the U.S.
• The possibility of war against Taiwan:
• The bad by-product of openning policy:Bad things like erotic materials, drugs and smuggling were also brought into China in the openning process. As a result, some people resist the opening or slow down the pace of openning.
• A small number of countries impede on China's cooperation with the world:

4. Paradigms

A more affluent China carries many implications in almost every aspects of world view such as in economic, social and military senses.

5. Experts

NA

6. Timing

• China and the U.S set the diplomatic relationship in 1979
• China began to carry out the openning policy in 1978.
• China set up Shenzhen special economic zone in 1980.
• Jan 1992 : Deng visited southern China to encourage opening and reforms
• July 1997 : Return of HongKong
• May 1999 : Bobming of Chinese embassy in Belgrade by a NATO aircraft
• Apr 2001 : A U.S. spyplane collided with a Chinese F*8 fighter jet
• Dec 2001 : China joined the WTO
• China will cancel the tariff for telecommunication equipments before 2005.
• The 2008 Olympic Games will be held in Beijing.
• The World Expostition will be held in Shanghai.

7. Web Resources

Growing China's influence in Southeast Asia

A Chinese oil company is thinking of bidding for a U.S. one