PPT Justin Yifu Lin

China’s Future Development and Economic Relations with Asia and Latin America : 

China’s Future Development and Economic Relations with Asia and Latin America Justin Yifu Lin Peking University and Hong Kong University of Science & Technology

China’s Growth Potential: 

China’s Growth Potential The current stage of China’s growth is about that of Japan in 1960. Table 1.doc

GDP per Capita, 1950-1992 : 

GDP per Capita, 1950-1992

The FDI to Developing Countries : 

The FDI to Developing Countries

Is China’s Labor Cost Low?: 

Is China’s Labor Cost Low? China’s wage rate is about 1/50 of that in U.S. and Japan Labor productivity is only 1/25 of U.S. and 1/26 of Japan US wage level is only 1/3 higher than China per dollar output

Share and Domestic Value Added of Processed Exports: 

Share and Domestic Value Added of Processed Exports

China’s Trade Balance, 1980-2003 : 

China’s Trade Balance, 1980-2003

China’s Trade Balances: 

China’s Trade Balances The pattern of China’s trade balance changed around 1992.Table 3.doc

Sources of FDI to China: 

Sources of FDI to China The changes in trade pattern is related to the relocation of labor-intensive manufacturing industries from East Asia to China through FDI. Table 4.doc

Concluding Remarks (1): 

Concluding Remarks (1) China has the potential to maintain dynamic growth in the coming decades To realize the growth potential, China needs to complete the transition to market economy WTO accession will facilitate China’s transition to market economy China will continue to attract large inflow of FDI. However, the same will be true to other developing countries.

Concluding Remarks (2): 

Concluding Remarks (2) More than half of China’s exports is processed manufacturing goods. The more is China export, the more China’s import of intermediate products from Asia. The dynamic growth in GDP and trade will increase China’s import of natural resources from natural resources rich countries in Asia Pacific and Latin American countries