Investmnt in China.docVIP

Sogang University International Business Prof. Lee Sang Hoon The Advantage Investment in China xuchenhao I29039 Table of Content Today’s China Advantage Economical aspects Abundant labor force Big market and strong spending power Natural resourses High-quality persons Infrastructure Political aspects Forun and Organizations Positive policy Five principles of peaceful ceexistence Promotion activity Conclution Today’s China Since starting to open up and reform its economy in 1978, China has averaged 9.4 percent annual GDP growth, one of the highest growth rates in the world. In 1978, it accounted for less than one percent of the world economy, and its total foreign trade was worth $20.6 billion. Today, it accounts for nine percent of the world economy--the second-largest national total in the world. Figure. Inward FDI in China (US$ billion), 1979–2004 China’s rapid development has attracted worldwide attention in recent years. The implications of various aspects of China’s rise, from its expanding influence and military muscle to its growing demand for energy supplies, are being heatedly debated in the international community as well as within China. Advantage Economical Aspect Abundant labor force That China’s relative cheap labor costs greatly atrracts investment. The low wage rates were one of the most important economic factors for FDI. the overall labor resources in China is very rich. In 2009, Chinas labor force has about 10 billion is expected to reach 1.1 billion in 2020 above. At the same time, there are 120 million of Chinas agricultural surplus labor force need to be transferred employment, will provide a long-term protection of human resources. At present, Chinas annual total amount of the labor force need to address more than 2,400 million. most of Europe and America, and Southeast Asian countries, still cheap. A calculation shows that in manufacturing, labor costs in mainland China about Hong Kongs