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EU - ChinaHPCN Industrial Co-operation InitiativeChina: Main Figures: 

EU - China HPCN Industrial Co-operation Initiative China: Main Figures

EU-China HPCN Industrial Co-operation Initiative: 

Area : 9.5 million km2 Population : 1.212 billion GDP (1995) : 695 billion US $ GDP per capita : 573 US $ in 1995, 1,300 forecast in 2000 GDP growth rate (1996): between 12 and 13% EU-China HPCN Industrial Co-operation Initiative

EU-China HPCN Industrial Co-operation Initiative: 

EU-China HPCN Industrial Co-operation Initiative Exports (1995) : 148.8 billion US $ Trade balance (1995) : + 16.7 billion US $ Foreign Investment (1995) : 37.7 billion US $ Inflation rate : 6.5% in 1996 (15% in 1995) Foreign exchange reserves : > US $ 100 billion (the highest in the world) Unemployment rate : 3%

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Structure of GDP : industry 50% agriculture 29% trade 9% building 7% transport 5% Structure of labour : agriculture 66% industry 18% services 16% EU-China HPCN Industrial Co-operation Initiative

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31 provinces 32 cities > 1 million inhabitants 15 cities > 2 million inhabitants 9 cities > 3 million inhabitants Shanghai 9.2 million Beijing 6.9 Tianjin 5.1 Shenyang 4.2 Chongqing 4.1 Wuhan 4.1 Guangzhou (Canton) 4.0 Harbin 3.2 Chengdu 3.0 EU-China HPCN Industrial Co-operation Initiative

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A fast growing middle class The number of individuals with an income of more than 100 000 US $ / year is already larger in China than in any European country EU-China HPCN Industrial Co-operation Initiative

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A "socialist market economy" = market economy + decentralised public investment ( provinces and cities ) + socialist framework of society EU-China HPCN Industrial Co-operation Initiative

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A firm and successful economic and financial policy Monetary policy : raise of interest rates banks have to raise their reserves to 15% RMB (yuan) / $ : free market (no official rate), a steady exchange rate in 1996 Budget policy : continuous reduction of government current expenditures Price control abolished for more than 90% of the products EU-China HPCN Industrial Co-operation Initiative

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Corporation tax : 33% normal 15% for foreign companies and joint-ventures in special export zones VAT : 17% Modernised legal framework for companies Lowering customs tariffs A pension scheme, a social security system EU-China HPCN Industrial Co-operation Initiative

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China is the first beneficiary of the World Bank Loans : Total debt in 1995 : US $ 22 billion Loans 1996 : US $ 3 billion EU = 15.3% of imports EU = 12.5% of exports EU-China HPCN Industrial Co-operation Initiative