China Connection

About China …..

The People Republic of China has become one of the world’s major economic powers with the greatest potential, and the overall living standard has reached that of a fairly well-off society.

In the 22 years following reform and opening-up in 1979 in particular, China’s economy developed at an unprecedented rate, and that momentum has been held steady into the 21st century. In 2004, the government further strengthened and improved its macro control, and the economy entered its best ever development period of recent years. The gross domestic product (GDP) for 2004 amounted to 13,687.59 billion yuan, 9.5 percent higher than the previous year.

Back then, China was still a new player in the international trade system, and needed to transform itself in order to adapt to the new rules of the game. Since then, China has become a leader in international trade; its total trade volume is now the world’s second-largest, as is its total GDP.

In 2011 saw China begin to implement its 12th Five-year Plan. The Plan seeks to refine China’s economic development by pushing forward the development of emerging strategic industries, expanding independent innovation, and pursuing sustainable economic development alongside social harmony and stability.

2011 also marked the 10th anniversary of China’s accession to the WTO. Following hard-fought negotiations, China joined the World Trade Organization, beginning the process of bringing its economy into line with the international economic system.

However, 2011 was not all smooth sailing for China. Domestically, China faced pressures from inflation, real estate bubbles, and loss of control over local governments’ financing platforms; externally, China continued to feel the impact of the global financial crisis, falling under the shadow of the European sovereign debt crisis and the U.S. economy’s weak recovery. During this critical year of transition, China’s economic performance was barely satisfactory. Domestically, China needs to curb inflation, maintain moderate growth, and avoid an economic hard landing; externally, it needs to actively cope with the decline in export demand caused by deterioration in the market environment. China needs to keep this enormous wheel—the world’s second largest economy—rolling forward along the right track, and at a steady speed.

Looking ahead at 2012, continued implementation of the development strategy defined in the 12th Five-year Plan is the path forward for the Chinese economy. At the Plan’s core lies: the question of how to maintain momentum towards rapid economic development built up during the past 30 years of “Reform and Opening Up”; how to greatly enhance the competency of Chinese enterprises, transforming them from followers into leaders on the global stage, and drivers of global growth; and how to adjust the economic model to cope with those social, economic, technical and environmental factors that hamper development.

If these goals are to be achieved, China must do more than simply coast forward on the inertia of the past 30 years. There have been great changes in the economic and business environment. Many new factors and driving forces influencing economic development have emerged.

New trends are forming. We must have new ideas, new strategies and new initiatives to meet these new challenges.

 

 

 

 

 

 

Leave a Reply