The%20Rise%20of%20China%20 - PowerPoint PPT Presentation

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The%20Rise%20of%20China%20

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Outside factors affecting growth, such as a recession in the U.S. ... History. The 2 countries were rivals since 1962 over a border dispute. 2005 ... – PowerPoint PPT presentation

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Title: The%20Rise%20of%20China%20


1
The Rise of China India
2
Rapid Economic Growth in China
  • Economic Growth rates of 9.5 are expected to
    continue
  • Economic growth of 10.7 from January to
    September, 2007

3
Manufacturing
  • China is now the worlds manufacturing centre

4
Inflation fears
  • The rapid growth is leading to inflation

5
Monetary Policy
  • Beijing is taking measures to cool the economy
    from excessive liquidity and huge investment
  • Money growth leads to lots of money available for
    lending
  • Tight monetary policy is implemented by
    revaluating the currency (pushing up the value of
    the Yuan)
  • Chinas central bank has increased interest rates
    twice in 2006

6
Other attempts to slow down the Chinese economy
  • Lending is being directed away from certain
    sectors
  • The approval process for certain investment
    projects are being delayed

7
Emerging East Asia
  • Comprised of China, Indonesia, Philippines,
    Thailand, Vietnam, and smaller economies which
    include Hong Kong, Singapore, South Korea, and
    Taiwan
  • The number of people living in poverty (lt1/day)
    has reduced by 25 million since 2005

8
Outside factors
  • Outside factors affecting growth, such as a
    recession in the U.S.
  • Not expected to have a huge impact on Asian
    growth
  • Domestic consumption and domestic investment are
    expected to support growth

9
Rise in Income status
  • East Asia is increasingly becoming a
    middle-income region

10
Challenges to the Asian Economies
  • Rapid urbanization
  • Delivery of services
  • Social cohesion
  • Corruption

11
India
  • India is fast becoming the worlds main provider
    of services

12
Indias Economic Growth
  • 8.1 annually since 2003 (second only to Chinas)

13
Indias Rising Middle Class
  • Since 1986, the middle class has quadrupled to
    about 250 million

14
Rising Income
  • Indias per capita income has risen from
    (US)1178 to 3051 over the past 25 years

15
Education
  • India has the 3rd largest concentration of
    educated labour in the world
  • The price of labour is 1/10 of that in the US

16
Manufacturing
  • Indian corporations have become leaders in the
    production of steel, motorcycle, auto parts,
    pharmaceuticals, cement and footballs.

17
Foreign Investment
  • Over 80 of foreign investment goes towards
    manufacturing, which is growing at 9 per year.

18
Billionaires
  • India has 23 billionaires

19
India China
  • Make up 1/3 of the worlds population
  • Represent the 2 economies with the largest
    potential for economic growth

20
History
  • The 2 countries were rivals since 1962 over a
    border dispute

21
2005
  • The border dispute was resolved

22
Trade
  • In 2004, Indian exports to China increased by 80
    and trade between the two countries was worth
    20(US) billion

23
Trading Partners
  • In the next couple of years, China is expected to
    replace the US and the EU as Indias top trading
    partner

24
Energy
  • In 2006, the two countries signed an energy
    cooperation agreement involving the countries
    state oil companies

25
Share of Manufacturing
  • China India make up 57 of the worlds
    manufacturing output
  • Asias total share is 70

26
Prospects for Canada
  • The economic rise of China India offer Canada
    and other middle power countries an alternative
    market in which to trade (rather than the US)

27
Challenges for India
  • Indias rural poor have benefited little from its
    economic boom
  • India has fallen from 124th to 127th on the HDI
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