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China,
Business Profile Economy: The economy has undergone rapid and consistent growth of approximately 8 to 9 per cent annually since the introduction of economic reforms in the late 1980s. However, the new wealth has not been evenly distributed and there are now major disparities between what are sometimes known as the ‘blue China’ – the coastal cities and Special Zones – and the inland ‘brown China’ of low-grade agriculture, antiquated industrial operations and widespread social and economic deprivation. Although modernisation of the agricultural sector is underway, there has been a major shift of population from the countryside to the cities. And the government is still prepared to undertake massive engineering projects such as the Three Gorges Dam project, which may displace anything up to one million people. China is the world’s largest producer of rice and a major producer of cereals and grain. Large mineral deposits, particularly coal and iron ore, provide the raw material for an extensive steel industry. China is self-sufficient in oil and is developing a petrochemicals industry. Other important minerals include tungsten, molybdenum, tin, lead, bauxite (aluminium), phosphates and manganese. In the last 10 years, central government policy has switched the emphasis in development from heavy to light industry and promoted the evolution of a service sector. Chemicals and high technology industries have grown particularly quickly. The fundamental changes that have taken place in the Chinese economy were introduced under what was described as the ‘socialist market economy’, under which market mechanisms were introduced to attract foreign investment and improved trade terms. Foreign companies were encouraged both to sell products in China and to establish joint ventures – under certain conditions – with Chinese commercial organisations. Such problems as emerged were put into perspective by the 1997 Asian economic crisis. China, because of its vast domestic market and highly regulated banking system, did not suffer nearly as badly as many of the region’s smaller economies. Government targets for production and growth continued to be met and still are. In 2003, the economy accelerated to reach 10 per cent growth, the trade balance showed a healthy surplus, and price inflation was negligible. China’s major imports are energy-related products, telecommunications, electronics and transport. Minerals and manufactured goods are the principal exports. The economy has already begun to show the benefits of China’s recently acquired membership of the World Trade Organisation in 2001. (This was a major foreign policy objective for the Jiang government.) The country’s principal trading partners are Germany, Japan and the USA. Business: Commercial Information: Conferences/Conventions: |