China Emerged
IBUS 702
China Emerged: Rethinking Your Global Strategy
China has a growing role. It is relevant locally, regionally and nationally, for it is one of the biggest growing economies in world, and the 3rd largest export market for US goods. The growth in US exports to China is 542% versus 80% of export to the whole world. Exports from Kansas to China are really significant too, and China's consumer class is expected to triple by 2020. So, China is no longer emerging; it has emerged; we ignore it at our own peril.
Session 1: In 20 years, China has experienced the fastest growth out of other emerging countries. This rapid growth has consequently made the HDI (Human Development Index) grow rapidly. 500 million people were lifted out of poverty and it has become the second largest economy since 2010, and largest exporter behind Germany, and expected to become largest importer. But is this growth sustainable? The low consumption and high investment is due to the rudimentary welfare system; the rate of private consumption to GDP is going down. It is also due to high infrastructure expenses, and that one lead to high investment. Another reason was the undervalued domestic currency, leading to trade surplus. China's international trade has been going up exponentially since about 2000, so did China's foreign exchange assets. But China is now rebalancing: retail is growing faster than GDP. However, the persisting strains on current economic, political and social systems are also becoming severe; for instance, poverty is still significant. Brazil is doing much better for they give subsidies to the poor. There has been severe environmental damage, because the system is based on promotion of officials based on ability to deliver GDP growth. Blue sky is actually rare in Beijing, but measures are taken to counteract this: government gives subsidies for investing in clean energy technologies, etc.
Last but not least, a persistent strain is the rampant corruption; we can
China Emerged: Rethinking Your Global Strategy
China has a growing role. It is relevant locally, regionally and nationally, for it is one of the biggest growing economies in world, and the 3rd largest export market for US goods. The growth in US exports to China is 542% versus 80% of export to the whole world. Exports from Kansas to China are really significant too, and China's consumer class is expected to triple by 2020. So, China is no longer emerging; it has emerged; we ignore it at our own peril.
Session 1: In 20 years, China has experienced the fastest growth out of other emerging countries. This rapid growth has consequently made the HDI (Human Development Index) grow rapidly. 500 million people were lifted out of poverty and it has become the second largest economy since 2010, and largest exporter behind Germany, and expected to become largest importer. But is this growth sustainable? The low consumption and high investment is due to the rudimentary welfare system; the rate of private consumption to GDP is going down. It is also due to high infrastructure expenses, and that one lead to high investment. Another reason was the undervalued domestic currency, leading to trade surplus. China's international trade has been going up exponentially since about 2000, so did China's foreign exchange assets. But China is now rebalancing: retail is growing faster than GDP. However, the persisting strains on current economic, political and social systems are also becoming severe; for instance, poverty is still significant. Brazil is doing much better for they give subsidies to the poor. There has been severe environmental damage, because the system is based on promotion of officials based on ability to deliver GDP growth. Blue sky is actually rare in Beijing, but measures are taken to counteract this: government gives subsidies for investing in clean energy technologies, etc.
Last but not least, a persistent strain is the rampant corruption; we can