Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

East Asian Economies > W5 - The Chinese Economy > Flashcards

W5 - The Chinese Economy Flashcards

All content was taken directly from the lecturers slides

1
Q

How is China able to support such a large population?

A

China’s land is very fertile due to the rivers that cut through

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

How does real income change the further inland you move into China?

A

Real income falls. Typically, the further you had into China most of the coast is the wealthy area.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Where is the point of inflection in the Chinese growth story?

A

1980 China became part of global trade from 1980, and benefited from low tariff exports

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

When was the first opium war?

A

1839-1842

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

How did China joining the WTO impact it economy?

A

It was no longer subject to US government policy, leading to further export growth and income from greater certainty

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What year did China join the WTO?

A

2001

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What was the period from 1644-1912 known as?

A

The Qing Dynasty

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

When was the republic of China?

A

1912-1949

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What happened between 1937 and 1945?

A

Japanese occupation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

When was the second opium war?

A

1856-1860

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

When was the Chinese civil war?

A

1949

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

When was the great leap forward?

A

1958/61

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

When did Deng rise to power?

A

1978

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

When was China’s turning point for economic growth?

A

1979

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

When did Xi Jinping rise to power?

A

2012

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What Mao set out to achieve?

A

To develop a massive socialist industrial complex through direct government control

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

How did China open to the world?

A

Gunboat diplomacy from the British which forced the opening of 5 ports to legalise opium trade

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What was the philosophy of the Ming Dynasty?

A

The Neo-Confucius state philosophy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What happened under the first Chinese five-year plan?

A
  • Large industrialisation projects (copied from Moscow)
  • Private ownership taken away
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Who was the leader of the Chinese nationalist party?

A

Chang Kai-shek

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What was the model for Maos China?

A

A Soviet style command economy with a big push industrialisation strategy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

How did China try to industrialise?

A

Neglected labour intensive sectors and traditional household-based economy in favour of heavy industry priority development strategy. An inward directed strategy

14
Q

What was the result of channelling resources into heavy industry?

A

It was a complete disaster

15
Q

What happened to the urban-rural income gap during the Maoist era?

A

It was growing but the hukou system inhibited labour movement from rural to urban areas

16
Q

What was the main positive of the Maoist era?

A

Given their low income levels, resources flowed into basic health and education supported by the socialist ideology. By 1982, 2/3 of people were literate

17
Q

Outline Deng’s rule?

A

Delegated to the market, decentralisation was the key with a market based economy. The leaders didn’t like this because they were communist in theory, how could you have a market based economy under these conditions. He was threatened by senior party leaders and military and had to ensure there was no super strong resistance within the parties

18
Q

What were the key reforms under Deng’s pragmatism?

A
  • Relied on decentralisation and market incentives
  • Reforms were often at provincial and local level
  • Utilised SEZ and received FDI for manufacturing
19
Q

What was the first step in Deng’s reforms?

A

Rural reforms from collectives to contracting lands to households increasing productivity by allowing them to sell excesses

20
Q

What was the dual-track price system?

A

State-set price vs market price co-existed. Helped avoid hyperinflation as in Russia and prices converged over time

21
Q

How did Deng make state owned enterprises (SOEs) more productive?

A

Deng gave more incentives to the state owned enterprises with targets in output or revenue for example. If they generate more, they were allowed to lend. They became de facto credit lenders in China. Eventually all inefficient firms were broken up

22
Q

When were trade relations normalised with China by the US?

A

The 1980s

23
Q

Who followed Deng as leader of the CCP?

A

Jiang Zemin
Hu Jintao

24
Q

How does China work politically and economically?

A

Political centralisation but economic decentralisation. Top down decisions but bottom up innovation

25
Q

What were other contributing factors to China’s success?

A
  • Macroeconomic stability
  • Fiscal decentralisation
26
Q

How did reforms in the 1980s compare to those of the 1990s?

A

1980s: Reform without losers
1990s: Reform with losers

27
Q

When did China change from a fixed to a managed float system?

A

July 2005

28
Q

When did China have a large devaluation of it’s currency?

A

2015

29
Q

What are the two main symptoms of a housing bubble?

A
  • Housing oversupply
  • High house price to income ratio
30
Q

How many years wages would you need to buy a house in Shenzen?

A

20 years

31
Q

What percentage of world cement consumption does China make up?

A

57.5%

32
Q

What are some other challenges in China?

A
  • State capitalism may be more subject to cronyism
  • Informal Guanxi (personal relationships)
  • Economic freedom
  • Rising labour costs
  • Ageing population
  • Legal system
  • Over-investment
33
Q

Why is their overinvestment in China?

A

Under China’s legal framework, Economic security is not as well protected. They are not as well protected so save more.

34
Q

Why is over investment bad for China?

A

Over investment reduces efficiency as return per dollar is lower. People save so much and don’t consume because they are anxious about their future.

35
Q

Why may the economy be slowing down?

A
  • Zero COVID policy
  • Inequality draws a major stumbling block to China’s growth
  • Reliance on overseas market at the moment, the domestic market needs to become the driving force
36
Q

What is local debt as a % of GDP?

A

42%

37
Q

What is the issue with bad debt risk?

A

Resource misallocation creating zombie firms and increased vulnerability to property busts

38
Q

Why is China’s youth unemployment high?

A

Because competition is extremely fierce

39
Q

What is Made in China (MIC) 2025?

A

MIC 2025 is a strategic plan to transform China into a higher value produvts and services nation (targeting 70% self-sufficiency)

40
Q

How does the US view MIC2025?

A

“As a real existential threat” to US tech leadership

41
Q

What are the two main pillars of Xinomics?

A
  • MIC2025
  • Comprehensive deepening reforms

Both are pragmatic growth strategies

42
Q

What are the comprehensive deepening reforms?

A
  • Urbanisation program
  • Strengthening of welfare to reduce precautionary savings
  • Consumption requires higher household income
43
Q

How has China undertaken technology transfer in stages?

A
  1. Soviet tech
  2. Transfer through FDI and joig ventures
  3. Commercial transfer
  4. Joint research and co-operation
  5. Acquisition of advanced foreign technologies (M&A)
44
Q

What does China allegedly want from the BRI?

A
  • Sell over-capacity industrial production
  • Deploy industrial overpacity
  • Invest surplus funds
  • Reduce dependence on US markets
  • Present China as a globally responsible power and diplomacy
45
Q

Why do many countries prefer to recieve Chinese money over US?

A

Many recipient countries prefer Chinese money to US money because they don’t want to be seen as transparent as non-democratic countries

East Asian Economies (13 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions