China 2

Question 1

how have China been investing in ports

Answer 1

in major ports such as Rotterdam, Dubai

Capturing parts of supply chain and amintaining control

Question 2

what are some other measures of economic growth and indicators of economic activity that are not gdp

Answer 2

energy used

railway freight traffic

new home construction

passenger car sales

imports (consumer spending)

Question 3

why is growth in China so exceptional compared to the other Asian Tigers such as Japan, South Korea and Taiwan

Answer 3

The size of China compared to these countries is massive

The scale that China has grown is impressive

Question 4

how does services as a sector in China perform in relation to the other industries

Answer 4

lags behind

Question 5

how does the average Chinese person’s wealth compare to the average American person’s wealth

Answer 5

Chinese are poorer than the average American

but there is a reduced number of rural people living under the poverty line

inequality in China

Question 6

what currency is used in China

Answer 6

Chinese Renminbi RMB/Chinese Yuan

(as Sterling is to Pound)

Question 7

What position in the world currencies in RMB used for global payments

Answer 7

5th

Question 8

what % of China’s bilateral trade is settled in renminbi

Answer 8

30%

Question 9

what currency dominates in global functions

Answer 9

Dollar

Question 10

what are the two versions of the Yuan

Answer 10

onshore and offshore

onshore dictated by market forces and against a basket of other currencies with the dollar and euro holding the most impact

Question 11

what does the gap between the onshore and offshore yuan indicate

Answer 11

the market’s perceptions of the Chinese economy

Question 12

what happens in chinese markets if the onshore yuan appreciates in value

Answer 12

import become cheaper

exports become more expensive

there is more competition from imports

reduced inflation

Question 13

what happens in Chinese markets fi the onshore yuan depreciates in value

Answer 13

import become more expensive

exports become cheaper

there is less competition from imports

increased inflation

Question 14

does it matter that the yuan manipulates their currency

Answer 14

yes because it decreased confidence in the yuan as a global currency

Question 15

is the number of Chinese companies buying foreign companies overseas increasing or decreasing

Answer 15

increasing

Question 16

examples of Chinese acquisitions

Answer 16

Riot games
Waldorf Astoria
Volvo

Question 17

Why do Chinese people often invest in property in the USA

Answer 17

for their children attending American universities

Question 18

In what countries do Chinese people invest in property the most

Answer 18

USA
Australia
Germany
UK

Question 19

When the IMF approved the RMB as a major world reserve currency, what currencies’ weights shifted to accomodate

Answer 19

all but the dollar
(Euro, Pound and Japanese Yen)

Question 20

How has China derisked themselves from Western Financial Dominance

Answer 20

developed an alternative to SWIFT which is CIPS

Question 21

what is the e-CNY

Answer 21

China’s Central Bank Digital Currency

an alternative financial channel as means of protection

Question 22

why have the commodity countries been doing well lately

Answer 22

they supply to China

Question 23

how did China use more cement in 3 years than the US did in the entire 20th century

Answer 23

Urbanisation due to a huge stimulus package

(construction and infrastructure)

Question 24

what is another indicator of China’s urbanisation

Answer 24

elevator demand, almost 70% of all elevators and escalators installed around the world are in China

Question 25

From where does China source the iron ore used in steel production

Answer 25

Brazil and Australia

Question 26

why does China produce lots of steel

Answer 26

for property construction, infrastructure and machinary

Question 27

how do wages in China differ between different geographical locations

Answer 27

coastal locations have higher wages than midlands

coastal = Shanghai, Beijing, Tianjin

midlands = Sichuan, Gansu, Hubel

Question 28

how is China dealing with the geographical wage imbalance

Answer 28

Government incentives to move production inwards

Question 29

what is overcapacity in China

Answer 29

China produces more than it demands in e.g. coals, metals

leading to exports

Zombie enterprise

Question 30

what are zombie enterprises

Answer 30

sectors that are not economically viable but are kept afloat by government because they employ lots of people and unemployment would cause more pressure on the government and would affect the country’s stability

Question 31

what is the dependency ratio

Answer 31

number of people of working age supporting younger and older people

Question 32

why is the population falling in China

Answer 32

higher wages = more family planning, lower fertility rates

Question 33

how is there a gender imbalance in China

Answer 33

surplus of males