China Case Study- NIC Flashcards
What was the GDP of China as of 2009?
$4.99 trillion, second to the USA
What is the Chinese economies growth rate?
Average growth rate of 10% over the last 30 years
China is the ________ largest trading nation in the world
Second
What has increased along with personal income in China?
The production of goods for the domestic market
What is China’s growth due to?
Massive investment in manufacturing-based industry and global trade expansion
What did 1978 mark in China?
The change of policy in the government, the new leader Deng Xiaoping moved towards a market orientated economy, opening China to TNCs which wanted to use the country as an export platform
Who did China become a competitor to after becoming an export platform for TNCs?
Other Asian TNCs such as South Korea
Initially where was FDI encouraged in China?
Special economic zones along the coast
What did China lack to make SEZ’s sufficiently attractive?
Legal infrastructure and knowledge of international practices
What happened in the early 1980s in China?
An expansion of the number of areas which could receive FDI, with a minimum of red tape and accompanied by significant improvements to infrastructure.
Where became designated for FDI in China in the early 1980s?
14 coastal cities (including Shanghai and Shenzhen) and three coastal regions became ‘open areas’ for foreign investment, providing tax incentives and other benefits
What did China become after opening up further to FDI?
A factory of the world
In 2001 China became the worlds largest recipient of FDI. How much did it receive in that year?
$53 billion
Which organisation did China enter in 2001?
The world trade organisation- allowing better access to global markets
What has China developed since becoming a member of the WTO?
A huge current account surplus