China Economics

China aims to double the country’s gross domestic product by 2020. This requires a 6-8 per cent annual growth. Sustainable economic growth does not happen without deep structural reforms. Economic growth is needed to maintain the investment in the transition of society towards a consumer society. Production need to focus on quality and efficiency, not the quantity. At the same time the growing inequality associated with large pressures. Economic growth in order to maintain China’s goal is to reduce dependence on economic growth, investment and exports, and on the other hand to strengthen domestic consumption.

China 18 Congress adopted a target of doubling the country’s GDP, and bring China to average wealthy countries by the year 2020. This requires an annual economic growth of 6-8 per cent of the maintenance. Economic growth from the old bottom Some observers are of the view that Hu and Wen during the period 2002-2012 China’s political leaders, intellectuals and government officials reaped the wise solution reached in the economic growth of the harvest, but they failed to create a viable vision for the future. Some observers call this period, China’s “lost decade”, although this classification has not been widely used in China.

It is clear that Premier Li Keqiang focuses on the economic challenges of the work. Line of his speech at the party conference, he assured the Chinese leadership to continue its economic growth by focusing on the line, in particular the industrial upgrading as well, speeding up the development of ICT, the government of urbanization and agricultural modernization. In saying this, Li has called for bolder economic reforms. In recent years, China’s economic growth upkeep investment-and export-led economic policies will be continued at the same time as the impetus for economic growth is sought by increasing domestic consumption.

Li Keqiang economic policies China’s development opportunities and challenges of in-depth understanding. Speeding up the development of the market economy. Economic growth and the quality of services should be balanced with speed and efficiency. Domestic consumption should emphasize and enhance coordination with export and investment. “Xiaokang-ideal society” or “a reasonable well-being of society, seeking to” the needs of economic development and the promotion of sustainable development continued. Industry to develop innovative development stressing. Urbanization increases domestic consumption.

Service sector growth increases employment. Central and Western regions of China’s modernization will require large-scale construction activity. Food security is the urbanization and industrialization of the basic requirement. Natural resources should be used with principles of sustainable development. Financial system reforms deepened in a comprehensive and economic model of the system being developed transparent. On the allocation of capital and increasing compliance with the principles of the market economy, the macroeconomic regulatory system can be improved.

Equal competitive environment is built for all business types. Financial and taxation system model and structural reform. Socially equitable income distribution system is being developed. Improving the governance of promoting good governance. China’s economic growth to continue – but slows down China’s economy is now a very different background than it was ten years ago. China was in the early 2000s, the world’s sixth largest economy, now it is the second largest. China’s economic growth is slowing down, its gross domestic product (GDP), the value surpass the U. S.

in GDP as early as possible in 2018. China’s economic growth over the last ten years there has been enormous. GDP growth of 9% in 2002 and by as much as 14% in 2007. In 2012, real GDP is projected to grow by about 7. 5%, and the 2013 GDP of 8. 1%. China’s economic growth will slow in the coming years for several reasons: China’s domestic GDP is now nominally four times higher than it was in 2000-early, so economic growth is relatively smaller today than it was ten years ago. China’s economic growth will slow down the global economic slowdown, while China’s exports will no longer pull the unabated.

The global competition for raw materials is intensifying narrowing down their supply and raising their prices. In 2000, China consumed 15% of the world’s steel and cement, today, China’s share is 50%. These and other of China’s raw materials are simply not available in the future as much as the Chinese economy would be able to take advantage of them to meet the growing demand. China will also compete for global energy resources. China has overtaken the U. S. as the world’s largest energy consumer. China’s economic growth will for decades to be based on coal and other fossil fuels, the increasing use.

The Chinese economy is highly dependent on labor resources. China’s population is no longer growing, and some estimates put the number of working-age labor force should reach its peak in 2015. In the future, the supply of skilled workers and the decline in earnings to grow. Many professional groups, incomes have risen faster than the gross national product. Raising the level of earnings in the future will increasingly depend on personal income tax easing. From innovation to help drive economic growth Li calls for a high-tech building and improving the climate for innovation.

Economic growth requires a high level of technology, which China does not yet have enough. High-tech focus is on the development of emerging industries. This aims to develop, among other things, by concentrating expertise and building larger corporate entities. Key national technology development programs will continue to be distributed through the significant support from the Chinese people for your high-tech development. China high-technology industry is to a large extent, from multi-national business investment, which is made in China assembly required because of cheap labor.

A skilled Chinese labor expensive, multi-national manufacturing companies will be able to move production to lower-cost countries in Asia and elsewhere. China’s universities will be completed in the labor market every year about six million new graduates completed their young. The majority of them are placed in existing large undertakings. High-level degrees in some cities in some places already oversupplied. Some of the graduates to set up a new business after a few years of work experience. Many of them would like to move abroad. China’s scientific development ideology has been criticized the centrality of technology.

Critics point out that China’s huge social challenges cannot be solved only through technology. Innovation development and the spread are also based on social capital and trust, which are the pillars of the welfare state. They do not just stop in China. To promote innovation, requires a strong and open to the humanities and social science research. Such plans “scientific development” agenda does not appear. China has actively sought to recruit top researchers in the back ground. Some of the peaks is back (about 600 a couple of years), but at the same time, the wealthy Chinese send the offspring of western top universities.

It is believed that China’s level of investment in science infrastructure are not sufficient inducement to the Western world environment used to return to the top researchers in the country. China should focus much more on health, education and academic freedom, which does not include the social sciences side of the work remotely as in the West are accustomed to. Rhetoric and challenges Reforms are still the main target of rhetoric. Maximum threshold for the Chinese political leadership is to achieve a consensus that the powers that be to reduce the privileges of interest groups in the name of social harmony.

During the meeting, a multi-party meeting authorized talked about in the media in favor of the Chinese income level should be raised. In recent years, rapid economic growth in large parts of the population left aside. The sharp and visible gap between rich and poor continues to grow. The growing inequality associated with large pressures that threaten the stability of society and the future of the power of the Communist Party of China. China’s economic development, the real solution will require to meet the challenges of leadership, transpar political will and the courage to social reforms.

EU-China economic relations between the need to develop a coherent The EU has for many years recommended radical reforms of China’s economy. It recommended, among other things, the special treatment of state-owned enterprises, in particular the reduction of the financial, telecommunications and energy sectors, interest rates and exchange rates on the approximation of the level of the market, as well as a large number of trade barriers. The EU is China’s largest trading partner. EU-China Summit in 2012, China was suddenly free trade agreement with the initiative.

The idea of ?? a free trade agreement is, however, premature. Priority should be given to enter into an investment agreement with the EU and China, as well as contribute to the fact that China’s entry to the WTO government procurement agreement. China’s new management approach required by the EU trade barriers can be considered as a measure of good will, the basis of which to proceed to debate on a possible free trade agreement. Of Finland and the EU’s interest that the economic and trade relations with China, spoken with one voice.