China's Industrial Revolution And Economic Presence (Advanced Research in Asian Economic Studies) (Advanced Research in Asian Economic Studies)

For some twenty-five years after 1949, China did not exist and the country was only rediscovered in the 1970s. As China looks set to soar in the new millennium, there is an urgency to understand the world's most populous economy with a billion plus people. This book aims to shed light on the country's rapid industrialization and internationalization by looking at questions such as : Can China sustain its accelerated rate of growth? Can labor supply be sustained at a relatively low wage rate? Can inflow of foreign direct investment be sustained at a high rate, given the consequent exposure to inflation? Will China's domestic market absorb its own output as the limit on the ability to export manufactures to overseas markets is reached? Is China's currency undervalued? Given China's foreign exchange reserves, should the country have a freely convertible currency? CONTENTS 20 Acknowledgments 8 Preface 12 List of Tables 24 List of Figures 32 Chapter 1 China's Industrial Revolution 36 1. Understanding China’s Economy 36 2. Sustainable Rate of Growth: Accelerated Rate of Growth 39 3. Challenges Ahead: A Macroeconomic Agenda 51 4. China’s Economic Reform: Industrialization and Internationalization 52 5. Progression of China’s Industrial Revolution 60 6. Inflow of Foreign Direct Investment: A Digression 61 7. Sources of FDI: A Digression Continued 67 8. China is Aware of Challenges Ahead 71 9. Macroeconomic Agenda 73 10. China’s Macroeconomic Structure: The People’s Bank of China (PBOC) & the Government Budget: The Case for Restructuring 75 10.1 The People’s Bank of China & China’s Monetary Policy 75 10.2 Exchange Rate 79 10.3 China’s National Budget and Fiscal Policy 81 11. Economic Regionalization 83 12. Conclusion 86 Chapter 2 China's Economic Presence 88 1. The Chinese Economy 88 2. The Socialist Market Economy 90 3. Industrialization and Internationalization 91 4. Privatization and Industrialization 96 5. The Service Sector of China 97 6. WTO’s 143’d Member: Dimension of the Chinese Economy 99 7. Challenges Ahead: Ownership of the Means of Production in China’s Socialist Market Economy: China and Asian Economic Community 100 8. Conclusion 104 Chapter 3 China and Asian Continental Economic Community: Intra Community Macro- and Microeconomic Parameters 106 1. Interdependence of Globalism and Regionalism 107 1.1. The Post- WWlI Infrastructure of Globalization and New World 108 1.2. The European Union (EU) 109 1.3 Will the EU Survive the Challenge of Political Integration? 110 2. Asia-Pacific Economic Cooperation (APEC) 112 3. Can the EU Be a Learning Model? 114 3.1. Unity in Diversity: Pan-European Culture and Civilization 114 3.2. Intra-EU Micro- and Macroeconomic Agenda 114 3.3. The Principle of Inclusion, Not Exclusion 115 3.4. EU’s Competitively Larger Economic Base: EU vis-a-vis USA 115 3.5. Shares of World Trade for Member Economies of EU and the Euro-Regime 117 3.6. Richer and Poorer Member Economies in E U Compact 120 3.7. Freedom of Labor Movement 121 3.8. Fluctuations of Exchange Rate: Euro vis-&is US Dollar 121 4. Asian Economic Community (AEC) 122 4.1. The Map of Asia is as Real as the Map of Europe 122 4.2. Membership of the AECMust Be Anchored in the Principle of Inclusion 123 4.3. Uniformity of the Level of Industrialization of the AECMembers 123 4.4. Asian Continental Economic Base in Terms of Its Shares of World Output and Trade 131 5. Conclusion 156 Chapter 4 Foreign Direct Investment (FDI) in China—An Economic Appraisal: A Structural Change 158 1. China’s Economic Reform and Structural Change of the Chinese Economy 159 2. Special Economic Zones (SEZs) 160 3. Sources of FDI into China 166 4. FDI Inflow into China by Sector: The Focus on the Industrial and Manufacturing Sector 168 5. The Real Estate Boom 175 6. Transport, Post and Telecommunication Services in the Tertiary Sector 178 7. FDI Inflow into China by Regions: Productivity Analyses 180 8. Productivity Analyses: FFE in China’s Manufacturing Sector 181 9. China’s Foreign Trade: A Great Leap Forward 182 10. Inflow of Foreign Investments into China and Economic Impact 184 11. Job and Employment Proffie in China’s Investment and Industrialization Plan 190 12. Investment in Fixed Assets: Capital Construction and Innovation 206 13. China’s Socialist Market 215 Chapter 5 China’s Money and Financial Market 216 1. The PBOC and Major Banks of China 217 2. China’s Financial Market 226 3. Foreign Banks and Financial Institutions in China 236 4. Joint Venture Securities Companies 239 5. China’s Growing Consumer Credit Market 240 6. The Challenge to Reconstruct the Financial Sector 241 7. Exchange Rate: the Chinese Yuan as a Floating Currency 245 Chapter 6 The Foreign Sector of the Chinese Economy 248 1. Trade Relations and Economic Cooperation 248 2. China’s Top 10 Trading Partners, Trade Destinations and Commodities in Trade: Export-Import-led Growth Model 255 3. China and United States Trade 259 4. China’s Trade Account and the Value of Foreign Trade by FFEs 1999-2001 266 Chapter 7 China’s Industrial Revolution and Beyond 268 1. China’s Economic Structure as of 2004 268 2. China’s Interregional Economic Gaps 271 3. China’s Income Distribution and the Gini Coefficient Index 287 4. Comparison of China, India, Japan, and US: Health, Transportation, and Technology 288 5. Village Level Industries in China’s Primary Sector 293 6. Education: Science and Technology 293 7. China and the USA 294 8. Selected Issues for China 299 8.1 Super-power Paradigm 299 8.2 Walls, Walls, and More Walls Against Foreign Businesses 299 8.3 China’s Statistics 302 8.4 Corruption 303 8.5 Bad Loans and Banking Crisis 303 9. China and the Rest of the World 304 10. Concluding Remarks 305 Bibliography 308 Internet Sources 313 Data Sources 314 Index 316 Ch. 1. China's industrial revolution. 1. Understanding China's economy. 2. Sustainable rate of growth : accelerated rate of growth. 3. Challenges ahead : a macroeconomic agenda. 4. China's economic reform : industrialization and internationalization. 5. Progression of China's industrial revolution. 6. Inflow of foreign direct investment : a digression. 7. Sources of FDI : a digression continued. 8. China is aware of challenges ahead. 9. Macroeconomic agenda. 10. China's macroeconomic structure : the People's Bank of China (PBOC) & the government budget : the case for restructuring. 11. Economic regionalization. 12. Conclusion -- ch. 2. China's economic presence 1. The Chinese economy. 2. The socialist market economy. 3. Industrialization and internationalization. 4. Privatization and industrialization. 5. The service sector of China. 6. WTO's 143rd member : dimension of the Chinese economy. 7. Challenges ahead : ownership of the means of production in China's socialist market economy : China and Asian economic community. 8. Conclusion -- ch. 3. China and Asian continental economic community : intra community macro- and microeconomic parameters. 1. Interdependence of globalism and regionalism. 2. Asia-Pacific Economic Cooperation (APEC). 3. Can the EU be a learning model? 4. Asian Economic Community (AEC). 5. Conclusion -- ch. 4. Foreign Direct Investment (FDI) in China - an economic appraisal : a structural change. 1. China's economic reform and structural change of the Chinese economy. 2. Special Economic Zones (SEZs). 3. Sources of FDI into China. 4. FDI inflow into China by sector : the focus on the industrial and manufacturing sector. 5. The real estate boom. 6. Transport, post and telecommunication services in the tertiary sector. 7. FDI inflow into China by regions : productivity analyses. 8. Productivity analyses : FFE in China's manufacturing sector. 9. China's foreign trade : a great leap forward. 10. Inflow of foreign investments into China and economic impact. 11. Job and employment profile in China's investment and industrialization plan. 12. Investment in fixed assets : capital construction and innovation. 13. China's socialist market -- ch. 5. China's money and financial market. 1. The PBOC and major banks of China. 2. China's financial market. 3. Foreign banks and financial institutions in China. 4. Joint venture securities companies. 5. China's growing consumer credit market. 6. The challenge to reconstruct the financial sector. 7. Exchange rate : the Chinese yuan as a floating currency -- ch. 6. The foreign sector of the Chinese economy. 1. Trade relations and economic cooperation. 2. China's top 10 trading partners, trade destinations, and commodities in trade : export-import-led growth model. 3. China and United States trade. 4. China's trade account and the value of foreign trade by FFEs 1999-2001 -- ch. 7. China's industrial revolution and beyond. 1. China's economic structure as of 2004. 2. China's interregional economic gaps. 3. China's income distribution and the Gini coefficient index. 4. Comparison of China, India, Japan, and US : health, transportation, and technology. 5. Village level industries in China's primary sector. 6. Education : science and technology. 7. China and the USA. 8. Selected issues for China. 9. China and the rest of the world. 10. Concluding remarks This text aims to shed light on the country's rapid industrialization and internationalization by looking at questions such as: Can China sustain its accelerated rate of growth? and Can labor supply be sustained at a relatively low wage rate?