Global Financial Crisis subprime mortgage crisis
Economy China’s ambition to guarantee an economic growth rate of 8 percent a pipe dream ?
BRICS （金砖国家） 2001 2009
China since the Reform & Opening-up in 1978 a great reformer, a man who initiated the process of change in China （1904～1997）
“better to be poor under socialism than rich under capitalism.” “Poverty is not socialism.” “seek truth from facts” “socialist market economy” “Whether a cat is black or white makes no difference. As long as it catches mice, it is a good cat.” “ socialism with Chinese characteristics” “Four Modernizations” (those of agriculture, industry, science and technology and the military. )
Economic Reform The Third Plenary Session of the 11th CPC Central Committee (1978) Economic restructure Rural areas Urban areas
Agricultural Development 1978 The first reform in Xiaogang village 1982 the Household Responsibility System 2003 The issue concerning agriculture, countryside and farmers 2005 The removal of agricultural tax 2006-2010 “the 11th Five-Year Plan” --building a new socialist countryside
China's Economic Zone • Beginning in 1980--five special economic zones in Shenzhen, Zhuhai and Shantou in Guangdong Province, Xiamen in Fujian Province, and Hainan Province; 1992 southern tour
China's Economic Zone • opened up 14 coastal cities, a group of border area cities and all capital cities; • and set up 15 bonded zones, 54 state-level economic and technological development zones and 53 state new- and high-tech industrial development zones in certain large and medium-sized cities. Develop-the-West strategy
The Three-Step Development Strategy • Step One -- to double the 1980 GNP and ensure that the people have enough food and clothing; • Step Two -- to quadruple the 1980 GNP by the end of the 20th century; • Step Three -- to increase per-capita GNP to the level of the medium-developed countries by the mid-21st century.
Key National Projects • The “West-to-East Electricity Transmission” • the “West-to-East Gas Transmission” • the “South-to-North Water Diversion” • the Three GorgesDam (1992-09) • Qinghai-Tibet Railway(2001-06)
The “Five-year-plan” strategy(1953) The 9th Five-Year Plan(1996-2000) two fundamental shifts: • to shift the economic growth mode from an extensive way to an intensive way • to shift economic system from a planned economy to a market economy
The “Five-year-plan” strategy The 11th Five-Year Plan(2006-2010) • Stable development of the national economy; • Optimizing and upgrading the industrial structure; • A marked growth in the utilization of resources; • Enhancing the capability for sustainable development; • Perfecting the market economic system; • Further improving people's life.
Questions • Goods with the label “made in China” are in shops all over the world. Hence China is nicknamed the “world’s factory”. What do you think of this label? • Recently, a media blitz in the West has asserted that China has become a developed country. What is the gap between China and developed countries?
Hot-button issues "We will crack down on illegal activities, including hoarding of land, driving up housing prices and delaying sales for bigger profits." Rocketing housing prices • Rush to buy real estate despite high price • Wen promises action against soaring housing prices • Housing price drop unlikely
DEBATE • High housing price vs. low income • Can tightening measures blow house prices down? Gen-20s on housing price
measures income disparity in a society Widening wealth gap • The Gini Coefficient/ index 0 Complete equality • Complete inequality 0.4 warning line
Wealth Gap Issue in NPC and CPPCC Report on the Work of the Government “Equality and justice shine even brighter than the sun.”
Three aspects • To formulate policies and measures to adjust the distribution of national income;（规范国家收入的分配） • To deepen the reform of the income distribution system of monopoly industries. （改革部分垄断行业的收入分配） • To standardize the pattern of income distribution. To protect legitimate income; regulate excessively high income; ban illegal income; gradually form a transparent, fair and rational pattern of income distribution; and resolutely reverse the widening income gap.（保障合法收入，规范过高收入，取缔非法收入，从而缩小贫富差距）
Inflation • Consumer price index (CPI) • Rising food and housing prices • The purchasing power of the consumers
Migrant workers • Poor living& working conditions • Meager wages or delayed payments • Unemployment • Household registration system • The next generation migrant workers • Unequal social welfare system • Left-behind wives & children