Overview of China’s Economy and Market Opportunities.pptVIP

Overview of China’s Economy and Market Opportunities Craig Allen Senior Commercial Officer U.S. Embassy, Beijing Headline News - 2005 China’s GDP grows 9.9 percent, surpassing USD 2 trillion Per capita GDP up to approximately USD 1,500 China’s banking system recapitalized with FDI FX reserves increased USD 208.9b to 818.9 b RMB de-pegged, but still not reflecting market forces China’s multilateral trade surplus up to 5 percent of GDP China plans to quadruple GDP in 20 years, which implies an average 7.3% annual growth. U.S. Exports to China Jan – Dec yoy Leading U.S. Exports to China (4 digits) (Jan. - Dec. 2005)  Product Value (USD) %Change aircraft and parts 3.84b 137.23% + digital integrated circuits 3.12b 16.98% + soybeans 2.25b 3.25% - cotton 1.40b 1.51% - ferrous metal scrap 1.26b 34.39% + auto parts / accessories 1.03b 72.04% + auto data processing equip. 0.78b 0.13% + copper scrap 0.76b 42.31% + aluminum scrap 0.72b 94.20% + Waste of paper 0.69b 42.79% + Electric Apparatus 0.57b 7.79% + Raw hidesskins of Bovine equine animal 0.56b 16.6% + U.S-China Bilateral Trade Balance Chinese Trade Balances China’s Multilateral trade balances by industry Economic Snapshot of 2005 9.9% GDP growth in 2005: 9.9% in Q1, 10.1% in Q2, 9.8% in Q3, 9.8% in Q4 12.9% growth of retail sales in 2005. 25.7 % growth in net fixed asset investment. 11.4% growth in industrial production (48% of GDP) 5.2% growth in agricultural production (12% of GDP) 9.6% growth in service growth (40% of GDP) Factors of Sustainable Growth in the future Demographics and work force composition Benign geo-political environment Stable monetary and fiscal policy High saving and investment rates Rapid adoption of technology Trend toward market-oriented legislation Booming private sector Market depth – strategic range Foreign Direct Investment (FDI) Market Entry Roadmap D