China's GDP figures
In China GDP figures are much
higher than countries around Europe, according to the Telegraph "GDP
growth fell to 8.1 percent in the first three months of this year, down from
8.9 percent in the fourth quarter of 2011, 9.1 percent in Q3, 9.5 percent in Q2
and 9.7 percent in Q1".
The figures for the first quarter
of 2011 where slightly more promising in comparison, figures showed that the
growth this time last year were 8.3 per cent. In addition, China the
world’s second biggest economy is at its slowest rate for three years, that
must be better for the rest of us than boom to bust.
Here is a diagram which shows the
predicted rate of growth against when they will surpass America in growth:
Population
China's population is the biggest
population for a country in the world. According to statistics 19.43% of the
world are chinese people this is roughly 1 in every 5 people in the world are
chinese. On estimates of 2010 the population of china stands at roughly 1.341
billion. The population has developed rapidly over the last 50 years on
estimate it has almost doubled in this period of time. Statistics have shown
that the population over the last 50 years has increased by 101% changing from
660 million in 1960 to the 1.341 billion in 2010.
Imports and Exports
China has one of the biggest
exports in the world, in May of 2012, imports were around 162.4 billion. The
average exports for a monthly basis for China were 160.3 billion but they
averaged around 41.5 billion per month, with record highs of 160.3. In china
there main exports are iron, steel, oil, mineral fuels as well as machinery and
equipment. Most of China's exports come from Japan, The EU, South korea,
Taiwan and ASEAN countries.
According to statistics China export
more goods than what they import, as of May 2012, China exports were worth
$181.8 billion. The chinese average around 47.8 billion on exports and $175.1
billion was the record high for the country, the record low for China was 2.8
billion. China's main exporters are the EU, USA, Hong Kong, Japan and South
Korea. There main sales from goods come from the sales of office machines,
processing data equipment, telecommunication equipment, electrical equipment,
apparel and clothing.
50 facts about the chinese economy
- China's GDP purchasing power is $11, 290, 000, 000, 000 .
- China has the 2nd fastest growth rate in the world with a rate 9.2%.
- China has the biggest labour force in the world 795.5 million.
For more information on facts on china's economy and details about china there information on the BBC.
Type of economy
China is a command economic system, this is where most decisions are made by the government and the people don't have much control over the decisions they can make. This contributes significantly to the growth of the chinese economy because if there are no inequalities in wages then business can invest more in their business on a regular basis without the risk finances in other areas. In the future, it is possible that the chinese economy will move from a command economic system to a transitional economy. In the future, China will overtake the US to have the most amount of private companies in the world as well as having the biggest GDP in the world.
China's government rules and legislations
China have a one- child policy that was introduced in 1979, the rules state that a person in China can only have one child per family. Since the year 1979 when the law was first introduced China has prevented around 400 million births births, which is necessary to prevent the population from becoming to over-populated.
Joint venture
A joint venture is a contractual agreement joining together two or more parties for the purpose of executing a particular business undertaking. All parties agree to share in the profits and losses of the enterprise. Many of the company's in China have joint ventures these are effective because businesses may share the same resources without sharing their profit margins. This reduces the costs for many chinese businesses because they spend less money on essentials such as company machinery, raw materials and potentially the same property.
Economic factors
Over the last year China's inflation rate has decreased by 1.9%, these statistics have been taken from January 2011 to June 2012. The rate of inflation is associated with the growth of China's economy in comparison to Britain which average between 2 to 2.7 % inflation rate Chinas inflation is very high. Between July to October the inflation rates of China were very high, this is most likely because Chinas economy was at a period of boom during the time.
The interest rate in China has remained fairly stable ranging from 5.81 to 6.56, in comparison to the 0.5% interest rate in England. This is high in comparison to Britain and this is due to Chinas economy doing well, otherwise interest rates would be low to encourage more people to borrow from banks.
In the last year China's value of their currency has decreased by roughly 0.3%. This is ideal for investors who are looking to who are looking to invest in businesses in China. This would also help Chinas economy grow very quickly because there exports will likely increase from other countries.
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