Chinese Economy

On August 17, 2011, in Accomodation, Beijing, Transportation, by Jack Li

The People’s Republic of China ranks since 2010 as the world’s second largest economy afterthe United States. It is one of the world’s fastest-growing major economies, with consistent growth rates of 5% – 15% over the past 30 years. China is also the largest exporter and second largest importer of goods in the world. China became the world’s top manufacturer in 2011, surpassing Germany. The provinces in the coastal regions of China tend to be more industrialized, while regions in the hinterland are less developed. China is the largest creditor nation in the world and owns approximately 20.8% of all foreign-owned US Treasury securities. To enrich your culture through your China Travel, you should also book your China Tours to learn more interesting things about China.

The renminbi (“people’s currency”) is the currency of China, denominated as the Yuan, subdivided into 10 Jiao or 100 Fen. The Renminbi is issued by the People’s Bank of China. The Latinised symbol is ¥. The Yuan is generally considered by outside observers to be undervalued by about 30-40%.

TOURISM

China’s tourism industry is one of the fastest-growing industries. The total revenue ofChina’s tourism industry reached USD 67.3 billion in 2002, accounting for 5.44% of the GDP. Tourism has become the main source of tax revenue and the key industry for economic development.

The total number of inbound tourists was 91.66 million in 2003, and that of tourists staying
overnight was 32.7 million, about 10 times of the number in 1980. International tourism receipts were USD 17.4 billion in 2003. China’s ranking for both the overnight tourist arrivals and tourism receipts were among the world’s top five in 2003. However, there is unlikely to be a big increase in the inbound tourism market.

EXTERNAL TRADE

Since economic reforms began in the late 1970s, China sought to decentralize its foreign trade
system to integrate itself into the international trading system. On November 1991, China joined the Asia-Pacific Economic Cooperation (APEC) group, which promotes free trade and cooperation in the economic, trade, investment, and technology spheres. China served as APEC chair in 2001, and Shanghai hosted the annual APEC leaders meeting in October of that year. China’s global trade
totaled $324 billion in 1997 and $151 billion in the first half of 1998; the trade surplus stood at $40.0 billion. China’s primary trading partners were Japan, Taiwan, the U.S., South Korea, Hong Kong, Germany, Singapore, Russia, and the Netherlands. China had a trade surplus with the U.S. of $49.7 billion in 1997 and $54.6 billion in 1998. Major imports were power generating equipment, aircraft and parts, computers and industrial machinery, raw materials, and chemical and agricultural products.

BANKING SECTOR

China’s banking system is highly regulated with six major banks, each having specific tasks andduties. The People’s Bank of China is the largest bank in China and acts as the Treasury. It also issues currency, monitors money supply, regulates monetary organizations and formulates monetary policy for the State Council. The Bank of China manages foreign exchange and manages foreign exchange reserves. The China Development Bank distributes foreign capital from a variety of sources, and the China International Trust and Investment Corporation (CITIC) was previously a
financial organization that smoothed the inflow of foreign funds, but is now a full bank, allowing to compete for foreign investment funds with the Bank of China. The China Construction Bank lends funds for capital construction projects from the state budget, and finally the Agricultural Bank of China functions as a lending and deposit taking institution for the agricultural sector. Travel to Beijing and get to know how is this country growing so fast economically.

Jack Li
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