China′s Economy and Business Opportunity.ppt

15-4-2008 China’s Economy and Business Opportunities Yi Lui Consul ( Economic & Commercial ) Consulate General of P. R. China in Toronto China’s Economy - GDP Growth  RMB 1billion, 1USD=7.30 RMB ( Dec. 2007 ) China’s Economy - Achievement ? Population in poverty greatly reduced: 250 Million to 23 Million ? Disposable income in cities & towns increased by 30 times to 13,786 RMB ? Net income in rural areas rises by 23 times to 4,140 RMB China’s Economy - Achievement ( 2007 ) Very big market ? 210 million internet users ? 547 million cell phone subscribers – 41.6% ? 8.79 million car sale ? 34.92 million outbound tourists World leading producer ? grain, meat, steel, coal, cement, household appliance, etc China’s Economy - Import and Export  ( US$ 100 million ) China’s Economy - Import and Export ? World 3rd largest country in terms of trade volume ? 3rd largest importer ? 2nd largest exporting country ? 8% of global trade China’s Economy - Policy Adjustments Optimize Export Mix ? Strict control over the export of high polluting, high energy consumption, resource products ? Encourage the export of products with proprietary brand, proprietary IPR or high added value ? Develop trade in services China’s Economy – Policy Adjustments Encourage Import ? lower or lift import tariff on certain products ? provide financing, set up funds ? cancel automatic import license on 883 products ? set up import pavilion in Canton Fair China’s Economy – Two-way Investment ? Inbound FDI in 2007: US$ 74.7 billion --- Over 400 of the top 500 transnational companies operate in China. ? Outbound FDI in 2007: US$ 18.7 billion, ? Foreign Exchange Reserves by the end of 2007: US$ 1.52 trillion. China’s Economy  Improve Efficiency of FDI Utilization ? Amend Catalogue for the Guidance of Foreign Investment Industry Encourage investment in Manufacturing, environment, service sectors