China Country Briefing

8 Pages 1884 Words

1. Executive Summary

China is a country that is developing day by day. China was a country that had problems with growth and struggled economically. It wasn’t until the early part of 2001, when China officially maintained a steady growth economically. There are records that would show that China had already achieved and surpassed the government’s declared target at seven percent growth; but figures from the Chinese government are often distorted to meet standards due to the governments’ involvement in business and the fiscal stimulus program.
Now according to many analysts, China’s economy has achieved a “soft landing”. They did this by establishing a stable growth with low inflation. Even with this improvement in China’s economy many believe that with all of the hundreds of millions of people without employment who work for the nation’s state-owned sectors. There will not be enough investments and profit to resolve china’s structural problems.
Since about 1980 the Chinese government has had a strong role in their economy. The government is the ultimate owner of State-Owned Enterprises (SOEs), which is mainly the Communist Party. They also control two thirds of an urban employment know as GDP. The government also has eliminated controls on the prices of goods such as transportation, grains, cotton, and coal. The government also sets all interest rates and financial institution fees.
In terms of trade, china restricts many imports by setting high tariffs and taxes, trading rights restrictions, and a variety of other barriers. Due to the strict laws and tariffs china has to deal with smuggling. China is now working closely with the WTO to help its economy grow and become sable. They have now cut tariffs on many goods, along with reducing the number of goods with import quotas.
China’s industrial sector is made up mainly by manufacturing, mining, and construction. Industrial makes up abou...