CHINA

In this class we discussed about the people and the grwoth of the economy in the Republic of China through the transition to capitalism.

They stared talking about the background of China, some important data are:

*Overpopulation

*Big and cheap labor force.

*Totalitarian government.

*Human right accusations.

*Low cost in manufacture.

We also talk about the problems that China has been trough to achieve the economic Growth they have now, like the pressure of USA, taxes, antitrade policies. Besides the pressure of countries like USA, the capitalism has had some influences in this country:

*GDP in 2020 could be of 4 trillions of USD, 4 times de actual size.
*Medium class (USD $18-36,000) growth of a 40% for 2020. Total of 520,000,000.
* Economic growth of 9% per year since 1978.
*40% of the worlds iron is being consumed by China.
*60% of GDP is private companies.
*2004 The parliament said; “the private property is untouchable”. New rich people appeared.

In trade with China you have to take in account
*Socialism vs capitalism: that its still not a totally capitalist country in all their regions, therefore you have to be careful when doing business
*Good image vs Bad experience: Not all that shines is gold. Sometimes good prices are not enough to do business, lots of their products have bad quality

QUESTION: Is now China reaching out to the world?

"A more potent story that is only just starting to be articulated is that China is going out to the world. Indeed, China is rising—some say has already risen—to become the newest great power. Do not yet think of it as a global one. Even if commercial and diplomatic tentacles stretch increasingly round the world, the main site of China's power, for decades to come, will be in its Asian backyard.
America, more than most countries, sees Chinese power as coercive. For now, though, it is clear that President Hu Jintao and the rest of the Chinese “fourth-generation” leadership are seeking to soothe neighbors—even Taiwan—by emphasizing money and ideas over guns.
With a trade-to-GDP ratio of around 70% and a sea of foreign investment, China is one of the world's most open economies. Much of the growth in America's bilateral deficit with China reflects a shift in low-cost manufacturing from other parts of Asia to the Chinese mainland.
China's presence as a commercial force is rapidly being felt around the world, through its growing investments overseas and through an apparently insatiable hunger for resources to fuel the industrial revolution at home."

Biblografia: http://www.economist.com/specialreports/PrinterFriendly.cfm?story_id=8880918