China Opportunities

Population (2004) = 1,300,000,000. Area = 9,597,000 sq. Km. Currency = Renminbi. Life expectancy (2003 Women, Men) = 73.5, 69.9. Total labor force = 763,000,000. Government type = Communist state: 

Population (2004) = 1,300,000,000. Area = 9,597,000 sq. Km. Currency = Renminbi. Life expectancy (2003 Women, Men) = 73.5, 69.9. Total labor force = 763,000,000. Government type = Communist state China OPPORTUNITIES

What is the GDP of China?: 

What is the GDP of China? A. $600 Million B. $900 Million C. $1 Billion D. $ 1,700 Billion Answer D. $ 1,700 Billion What is the Economic Growth Rate of China? A. 4% B. 5% C. 7% D. 8% E. 10% Answer E. 10%

Growth-rising share of global output and exports : 

Growth-rising share of global output and exports Contribution to global GDP growth since 2000 has been almost twice as large as that of the next three biggest emerging economies, India, Brazil and Russia, combined. Economic growth has averaged 9.5% over the past two decades and seems likely to continue. National income has been doubling every eight years. Such an increase in output represents one of the most sustained and rapid economic transformations seen in the world economy in the past 50 years. The sum of its total exports and imports of goods and services amounts to around 75% of China's GDP; in Japan, India and Brazil the figure is 25-30% So what? = Uniquely, and literally, China can shake the world with its growth and its circulation of goods. One country can do this!

What is the rate of consumption of China?: 

What is the rate of consumption of China? Global Oil consumption increase? A. 0.9% B. 5% C. 20% D. 33% Answer D. 33% True of False? China is the biggest consumer of Aluminum, Steel, Copper, and Coal. Answer TRUE

Consumption: 

Consumption China has accounted for one-third of the increase in global oil demand since 2000. There is currently only one car for every 70 people in China, against one car for every two Americans. China is already the world's biggest consumer of many commodities, such as aluminum, steel, copper and coal, and the second-biggest consumer of oil, so changes in Chinese demand have a big impact on world prices. So what? = That implies a huge increase in oil demand, which could keep prices high for the foreseeable future, because of scarce global spare capacity. China's consumption per person of raw materials, such as copper and aluminum, is also still low, so rising demand will continue to support commodity prices. See any opportunities?

Make the right order: 

Make the right order List the countries that produce steel in order from high to low A. USA-Japan-Germany-China-Korea B. China-Japan-Korea-Germany-USA C. Germany-Japan-USA-China-Korea D. Japan-China-Germany-Korea-USA Answer B.

Productions: 

Productions Steel production in China has been growing at nearly 10% per year, at 6% in India and over 3% in Brazil. In Ukraine, however, steel production has fallen over the period and in Russia the annual growth has been less than 0.5%. By the end of 2003, China had become by far the largest steel producer. Its production in 2003 of just under 200 million tons was nearly twice that of the second country, Japan. The next largest producers were Korea, Germany and the US. In 1990, while the EU produced just over 132 million tons of steel compared to 144 million tons in 2003, over the same period China went from 52.3 million tons to 196.7 million tons, which is almost a quarter of the total world production of 844.4 million tons. So what? = Power of natural resources, power of technology in transforming natural resources into products, power of endless source of human labor, power of the new source of consumption. Opportunities.

Business Growth: 

Business Growth

Figure out…: 

Figure out… What is the FDI of USA and China in 2000? A. $300/$38 Billion B. $38/$300 Billion Answer A. What is the FDI of USA and China in 2002? A. $200/$45 Billion B. $32/$53 Billion Answer B.

Investment: 

Investment China became the world’s largest recipient of foreign direct investment (FDI) for the first time in 2002. This jump is amid declining FDI inflows to other countries. Since 1996, China has attracted more FDI than other developing countries. In 2000 the United States, Germany and France, among others, all received more in foreign investment than China’s US$38.4 billion. In 2002, however, FDI to most nations fell sharply, particularly in the US. Meanwhile, FDI into China rose to a record US$52.7 billion. FDI inflows rose from US$916 million per year in terms of actually realized investment in 1983 to $3,487 million in 1990. They then accelerated rapidly in the mid-1990s before stabilizing by 2000. In fact, China became the world’s largest recipient of FDI in 2002, receiving nearly US$53 billion. So what? = potential of taking advantages of the “opening market”, which is soon to be the largest consumption market in the world. FDI = GDP = Consumption Rate = Demand = Business Opportunity

Man Power – Labor : 

Man Power – Labor The government has pursued a policy of raising the educational qualifications of young people. It launched a program to give all children nine years’ education, moving recently to ensure that all rural areas achieve this goal by 2006. Higher education has also been transformed. The wages for educated staff have been pushed up by the growing influence of a market economy. Women Rights have been stated and addressed. Roles of women in business and politics have been rising continuously. China's total labor force in 2004 = 763,000,000. will peak at 1 billion in 2015 So what? Man power + Education = Brain power Brain power + Political support + High Economic Growth = ?

Opportunity Indicators: 

Opportunity Indicators What do we have-products? What do we need-to produce our products? Can we find it THERE? Can THEY offer us a better deal? Are we ready-Know How, Channels, Knowledge? If we do not take advantage of the opportunity, somebody else will.

Kentucky World Trade Center-MSU Office: 

Kentucky World Trade Center-MSU Office Bob Jackson/Aik Krutngoen 211 A, Industry & Technology Building Murray State University Murray, KY 42071 Tel: 270-809-5092/5093 Fax: 270-809-5094 Email: kwtc@murraystate.edu www.murraystate.edu/kwtc