GE- China Flashcards
Rural Credit Cooperatives stat + explanation
1984: Announcement that outstanding loans will become assets of particular branches, incentivizing increased lending.
RCC loans doubled compared to 1983.
Proportion of RCC deposits locally jumped from 34% to 57% in a single year.
Total credit increased by 33%.
Market oriented reforms- Household Responsibility system - Grain/ Production
Total national grain output in 1984: 407 million tons, up by 33% compared to 1978, with an average annual growth rate of 5%.
1980s: Agricultural production increased an average of 9% a year.
Education stat + law
Increase in overseas study from 2,000 in 1980 to 39,000 in 2000.
Education Law 1995: Government commitment to equality of educational opportunity.
1999 Action Plan for Revitalising Education: Compulsory education across the country.
Township and Village Enterprise- Employment
TVEs employed 127 million people, accounting for 18% of total labour force of the country and 25% of the rural labour force
Township and Village Enterprise - Exports (2)
80k TVEs were engaged in export oriented production, accounting for 40% of China’s total exports and 30% of China’s GDP
1999: TVEs Exports reached US 94 billion accounting for 48% of the country’s total exports.
Township and Village Enterprise- Output
1994: Generated a total of US 466 billion in gross value of output, constituting 30% of domestic gross output
Wage system Reform Stat + increase
1980: Bonuses amounted to 9% of total state wages, institution of bonuses accounted for the bulk of 14% increase in real urban wages from 1978-1980
Wages continued to increase at an average of 5.8% yearly during the 8th 5 year plan (1989-1991)
INCREASED URBAN INCOME, LIVING STANDARDS, SERVED THE GOVERNMENT’s GOAL OF ECONOMIC REORIENTATION
Open Door Policy - SEZ: FDI + Export Output
By the end of 1990, FDI in 14 coastal open cities exceeded $10 billion.
Total export volume of 12 coastal provinces: $40 billion (2/3 of national export volume).
SEZ- Rapid economic growth (industrial output)
Gross value of industrial output for the 1st 4 SEZs jumped from 5.5 billion 1985- 49.5 billion in 1990 , Average annual growth of 50%
SEZ: Special tax incentives
15% tax waived for the first two years of profitability.
50% tax exemption in the third and fourth years.
Overall import/ export stat
Increase in foreign trade: China’s imports and exports increased from $60.1 billion in 1986 to $99.5 billion in 1991.
Preparation for WTO (reduction in tariff rate)
Tariffs on industrial goods reduced to an average rate of 8.9% , eliminate quotas on most agricultural goods and eliminate export subsidies on agricultural goods
Preparation for WTO: Agreements
Agreement on Subsidies and Coutnervailing Measures : make subsidies to state own enterprises subject to countervailing duty measures
WTO Safeguards Agreement: Restricts China’s ability to impose tariffs. China also agreed to allow a special safeguard rule on China, allowing other members to impose quotas and tariffs on CHinese goods
International Development: US
Shanghai Comminique
Removal of 20 year embargo on China, leading to a surge in economic activity
International Development: Japan treaties + what did they call for? (4 TOIP)
1978 Sino japanese Long Term Trage Agreement, calling for 20 billion in 2 way trade
Oil imports from Japan increase from 7 million to 15 million from 1978-1982
1979: China signed 4 dozen contracts worth 3.8 million worth of industrial plants and equpiment.
1984: Japan provides another aid package worth 2.1 billion to finance construction of 7 projects
Outcome of Sino-japanese Trade
Japan constituted 26% of China’s total external trade in 1984
Total volume of 2 way trade: 3.5 billion 1977- 13.2 billion 1984
FDI levels in China
1990s: China became 2nd largest FDI recipient in the world and accounted for 25% of FDI flows to all developing countries
Impact of FDI in China: Increase in GDP growth
Capital formation contributed 0.4 percentage poitns to annual GDP growth in the 1990s
Total factor productivity raised by 2.5 percentage points in 1990s
Foreign funded enterprises
Impact of FDI- Increase in employment
Employment in FFEs quadripled from 1991-1999 to 6 million accounting for 3% of China’s urban population.
Impact of FDI- trade value
China’s trade has grown 4 and a half times world trade from 1978
Share of world trade quadripled from 0.9% to 3.7% from 1978-2000
