Tag Archives: economy in china

What will be the next target for China?

Chinese New 5 Year economy

What is the aim of this 5-year plan?

For 2020 year, China has set new targets and goals in order to set a prosperous society in time. The aim is to double GDP and per capita personal income and keep the medium-high growth for the next coming years. Adding to it, there is a real improvement of industries. As you may probably know, China wants to develop its presence in the world and in every possible workable field.

China is attracting, even more, foreigners than years ago, more expats people learn Chinese in Beijing.

You can read an interesting article about China who has more billionaires than the United States.

Economical aspect

china-flagge-kurve

China’s aim for a long time ago is trying to balance the urbanization of the country in rural and urban areas of China. In order to achieve it, China has a strong innovation development strategy for the industries.

Besides this, China is developing main core technologies in different sectors fields such as energy, aviation, medicine and intelligent manufacturing.

The health industry is booming in China and it will be under the spotlight due to pollution problems having an impact on Chinese people health.

Environment

Beijing Artist

China is facing a big environment issue and it is one of the key priority in the plan of 2016-2020.  China’s air pollution issue is affecting country’s human health and biophysical environment.

With this 5 years plan, new targets need to be reached at the end of 2020:

  • Water consumption needs to fall by 20% by 2020
  • Energy consumption will be cut by 15%
  • Carbon dioxide emissions will be cut by 15%.

Those goals are quite challenging for China

Political influence

China

No matter if we are talking about economics or even environmental challenges and plans reforms are highlighting the Chinese government policy foundations and actions.

This Chinese New 5 year plans is hiding purposely the question of how the Chinese government will actually try to achieve these targets set up at the very beginning. This is mainly the way how the Chinese government is working on, keeping up the mystery side of the solution.

Chinese authorities are actually facing a big challenge such as recently, those protests led by thousands of miners in northeastern China in coal and steel industry.  What was the matter of this protestation? Overcapacity industry, no wages for months.

This can actually have a huge impact on the prosperity of Chinese economy and if economic reforms fail, the social and political consequences would be unforeseeable.

Everything is tightly linking together.

To conclude, this Chinese leadership decision of this New 5 year plan is a way to organize all the structure in place with some fixed targets and goals but it is also a way to show the power of the Middle Kingdom in the world and their capacity to handle every issue in the country.

You can read more

5 interesting tips on Chinese economy

7 tips to learn the Chinese language faster online learning

lao waiArticle was written by Pierre

Spent 2 years in China and Studying Chinese international relations. Pierre has written a thesis on Chinese economy booming.

 

 

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    Sharing economy in China

    Sharing economy in China is worth close to $300b !

    In China, from ride-hailing businesses to online auctioneers, sharing economy platforms have created a market worth close to 2 trillion yuan (nearly $300 billion) in 2015, says the National Information Center Sunday. There are 50 million sharing business providers in China and they have more than 500 million consumers, according to a report by the center.

    Read more about online education market in China.

    What is a sharing economy ?

    In the new trendy collaborative consumption, the sharing economy or the peer economy, owners can rent out some things they’re not using for the moment, such as a bike, car or even a house to someone they don’t know using these peer-to-peer services. Usually, the company has a rating system comparable to eBay’s rating or review system so that both sides of the contract can fully trust the other. With these services becoming more and more popular, many people no longer need to buy when they can rent pretty much everything from others.

    kuaidi

    In addition to taxi-hailing apps such as Uber, KuaiDi, Didi, product, knowledge and service-based providers have burgeoned all over the web, reported Yang Yixin, deputy secretary-general of the China Internet Association, at the press conference issuing this famous report.

    You can read more here: China has more billionaires than the United States

    Peer economy in China : 40% growth per year in the coming five years !

    China economy

    Zhang Xinhong, along with the National Information Center’s Information Research Department, said the peer economy in China would be growing at an annual rate of 40% in the coming five years, and would be equivalent to over 10% of China’s GDP by 2020.

    Taxi-hailing app Didi, the result of a merger between two separate startups in early 2015, raised tens of billions of US dollars last year from domestic and overseas investors.

    Li Jianhua, Didi ‘s chief development officer, reported that his taxi-hailing app received 1.4 billion calls back in 2015, a figure Li expects to double by the end of 2016.

    The report forecasts that in the coming decade, five to ten companies with similar value and influence as Didi will manage to establish themselves in the peer economy.

    You want to know more about 5 things to know before visiting Beijing

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      5 wrong ideas about Chinese economy

      Wrong ideas about Chinese economy

      Most of Westerns leaders think the Chinese economy is breaking down. Chinese market is different and businessmen have to understand it doesn’t work in the same way than they know. Indeed, entrepreneurship in China is special and is said to be out of rules, totally disjointed, irrational and the worst system ever seen in the world.

      Obviously, Chinese methods look to be confusing. Nevertheless, the government doesn’t pay attention to criticisms and western minds. They take advantage of the yuan’s devaluations to be more competitive on the market.

      However, according to someone who lived in China for many years, all of those minds are wrong. Chinese economy’s future is promising and set up five given ideas about this subject.

      1. Chinese economy is a fake

      China is said not to have a solid basis concerning it economy. Indeed, the Asian country seems to benefit from cheapest way to succeed in launching its business, looks to be not a scary competitor on the market’s world and doesn’t get strategy’s development efficient. China doesn’t have enough knowledge regarding the market’s World’s rules. Therefore, many private industries are borning in China, and government invests some money in order to allow them to innovate on the market and become more competitive.

      Those funds enable the country to gain in stability and organization. In addition, this share allows a companies’ industrialization and urbanization. China wants to line up and even surpass on the other countries’ economy. Since 2013, Chinese government tries to create many areas for new markets, innovations, authentic ideas and invests to reach this goal. Actually, private companies which are making out, convert Chinese consumers to purchase their products and promote their brands in order to increase the audience.

       

      1. China has lack of innovating ideas

      idea

      As said above, Chinese government encourages the startups’ entrepreneurship to innovate. Many young companies’ birth were noticed this last years which try to offer authentic services on the Chinese market. Nevertheless, while a growing market, Western countries’ leaders think these stratups have lack of capacity to innovate and bit of its are uneffective and don’t make out.

      Nevertheless, the government is investing in technological stratups whose rate is increasing on the market. Moreover, China wants to create the new Silicon Valley in the North of Beijing in order to welcome startups surrounded by Chinese giants such as Baidu, Weibo and others.

      In addition, more and more companies are more valuated since last year such as Alibaba or Xiaomi which is considered as the emerging sector. The government is giving funds too, into scolarship involving one million science and engeenering graduates a year.

      Read more: A hard landing for China’s economy?

       

      1. Chinese environment is too much damaged to be preserved now

      pollution

      China is said to be very dirty, doesn’t know the environment rules, and doesn’t have funds to preserve the nature. That’s true, they don’t begin in the best way to launch their industry. Actually, Chinese are more and more conscious of the pollution’s troubles. Moreover, the government is setting important measures to reduce smoggy in order to decrease the air and water pollution in the country and especially to protect the population’s health. Leadership in China creates new jobs so that clean up cities and take in charge energy supplies.

      Furthermore: What is China doing to tackle its air pollution?

      1. Important inefficient investment and debts are rising

      These last years, Chinese economy is led by buildings, roads, infrastructures. That’s why, fuels spending are increasing which involve China’s debt’s rising.  While yuan’s devaluation, debt’s China’s economy quadrupled and reached 28,2 trillion the last year.

      However, China is totally able to fight against the crisis and it debt is less important than it Western neighbors. Indeed, crisis impact only a thin Chinese market’s segment and troubles couldn’t be worst. Economy in China must grow, slowly but surely.

      Then, Chinese companies’ activity is increasing and they represent more than 60 percent of Chinese market cap. The stock market came down from 150 to 40 percent the last year. This low economy involves a consumption decreasing. China has to be patient.

      1. Gaps between social classes

      The Chinese economy growth created differences of the standard of living between various social classes and especially from region to another. Indeed, Government maintains the entrepreneurship and tries to boost the country’s economy thanks to many reforms. Therefore, many gaps appeared. While rich people become richer, middle and low classes meet difficulties to follow this rythm.

      In addition, many people who are living in remote areas in China, can’t benefit to the education and health care which are not the only troubles. In order to solve its, Chinese population tries to imitate Western countries and creates social aids to be fairer within the country.

      To sum up, most of Western economy’s leaders have preconcived ideas about Chinese development. Actually, even if China still has to progress but it the economy is growing up. The country market is more and more efficient. Then, many Chinese companies are making out among Western giants.

       

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        A hard landing for China’s economy?

        A hard landing for China’s economy?

        China’s top economic planner and head of the National Development and Reform Commission (NDRC) Xu Shaoshi asserts that “China will absolutely not experience a hard landing” and that “these predictions of a hard landing are destined to come to nothing”.

        The country’s economy is not headed for a hard touchdown, but the instability of the global economy may pose a risk to the efficiency of the country’s growth. China acknowledges that they have faced a tough battle to keep their global economic ranking of no.2 from growing, with an estimated of 6.5% increase in employment and restructuring state-owned enterprises over the next five years.

        During the 12-day annual national parliament event, the government outlined the issue of its economy transitioning from an investment and export-focused economy to one based more on services and consumption.

        China’s economy increased by only 6.9% in 2015, the slowest it has progressed in a quarter of a century, but still steadily the fastest compared to other major economies.

        Capture d’écran 2016-04-01 à 17.48.42

        The country has aimed to increase its growth target of 6.5% to 7% for this year, introducing a range that seems rather demanding; whilst seeking flexibility in employment growth and restructuring the “zombie companies” in their various industries.

        According to Chinese Prime Minister Li Keqiang, the country’s new objectives are aimed at energy consumption, inflation, and employment opportunities. However, he did not further mention how these objectives would be met. Many investors had hoped that China would propose an assertive resolution for financial spending and prop growth, but instead the draft goal of operating an economic deficit equivalent to 3% GDP (being up from the previous annual target of 2.3%) disappointed many.

        China’s massive foreign exchange reserves more than $3 trillion, but a fast decline in assets in the past 18 months with Beijing supporting the country’s currency has shaken some investors. The condition of China’s economy, and Beijing being able to facilitate it, were main talking points at an assembly of 20 financial ministers and significant bankers in Shanghai in February.

        Li stated that China has the confidence and support needed to handle difficulties both locally and globally.

        “In general, I think China’s economy performance has stayed at a reasonable range (since 2015)” Xu commented and added that the Chinese economy should not be viewed any longer through traditional evaluations. “First, we should look from the angle that the economy has entered the ‘new normal’ period,” he said, in which growth rates have transitioned, and the economy growth engines are progressing towards services from the investment.

        Chinese manager

        According to Xinhua Official News Agency, China currently has more than 150,000 public enterprises, with the liquidity of more than $100 billion yuan, and the employment of 30 million people. The Chinese government cannot neglect the volatility of the global economy, and must put words into action in order to sustain their economic development.

        Read more:
        5 tips entering Chinese market

        7 opportunities for business in China

         

         

         

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