The present research is devoted to the critical evaluating and analyzing transformation of china’s state owned enterprises during Chinas economic growth and development. The work is aimed at critically assess the process of transformation of china’s state owned enterprises (SOEs) in relation to its obligations under its WTO membership requirements. China`s Economy The transition of the China’s economy towards openness in the area of external economic ties implies the solution of the set tasks for the account of international trade expansion, attraction of the foreign capital in the productive form and the use of foreign credits. International trade in China nowadays is the most developed form of international contacts. The Chinese international turnover during the years of reforms has grown from $10 billion in 1978 to $325 billion in 1997 (the positive balance equals to more than $40 billion).
By the international trade volume China now takes the third place in the world, with its export and import in 2005 equaling to $1422.1 billion. (Lloyd 2006, p.
389) More than 220 countries have international trade relations with China, among which are USA, Japan, European Union, Korea, Taiwan, Russia, Australia and Canada. (Garnaut & Song 2005, p. 27) The dependence of Chinese economy on the international trade has grown significantly, which witnesses about its deep involvement into the world international ties and processes. Though China takes the third place in the world economy by the international trade volume, its weight in it can still become higher. The main obstacle for this is the low quality of the bigger portion of the goods, produced by the processing industry, which don’t survive the rivalry of the similar products on the world market, and the absence of possibilities for increasing the raw materials export. The main task of the Chinese export policy is the providing of import financing, which is built with the account of the international conjuncture. The main efforts are directed at stimulating predominant growth of finished goods’ export with the growing portion of science-heavy products; these processes are accompanied by achieving the quality of goods, which will correspond to the international quality standards.
The Essay on US-China Trade History 1980-Present
... around the world are now providing evidence that China’s middle class is growing as rapid as its economy. With U. S. -China trade expected to ... but well beginning started in 1980 when U. S. -China trade was $2 billion, which was the summation of both imports and exports. ... 2001 finally became a member of the international trading system. Once a member, China agreed to: a) Reduce the average tariff ...
Considerable growth has been achieved in the total volume of finished goods export, which by the beginning of 90s constituted already 2/3 of the Chinese export.2 The first place in export (50%) belongs to the consumer goods, among which clothes, shoes, toys, etc. An important place in the international trade of China is taken by the raw materials processing with the further export of the finished products it constitutes about 50% of the total countrys turnover. China is the leader in exporting textiles and silk. Textile industry is the main source of foreign income for China. (Kent 2002, p. 344) Less than 20% of export accounts for machine building and electro technical products.
The growth of the specific gravity of these products in the world export is being restricted by the fact, that their quality is not competitive with that of other suppliers. The portion of Chinese machine building in the world export does not exceed 0.3%. (Manilla Bulletin 2005, p. 12) The structure of the international trade in China was described here to decide, what challenges are set in front of Chinese economy and foreign trade as the essential part in its development. The definition and determination of challenges will lead us to the definition of the possible ways for improving international trade. Speaking about the main challenges of the Chinese economic development, it should be mentioned, that there are four main problems, which are to be solved by China to make its economy even more successful and profitable. The export growth has met with the pressure of the saturated world market. China took the third place in 2005 by the volume of export; its index was 7.3% of the total world export, which is 3.4 points more than it had been in 2000.
The Essay on Countries trade products
In the world market, countries trade products they wouldn’t be able to produce on their own. Countries like Cuba specializes in cigar production, Japan in electronics, and Russia in rocket technology. However, even if a country has an absolute advantage in producing all goods, they still will benefit from trade. Many economic factors are involved with trade. Among the major factors are ...
The export growth rates in China were the highest among the rest of the leading countries 13 percent, but the space for the Chinese export is limited by the international market. (Pei 2006, p. 59) Another challenge lies in the fact that the development of Chinese foreign trade has come into the stage of high cost price; the pressure of labor force and resources cost have 2 Garnaut, Ross & Song, Ligang. (2005) Chinas Third Economic Transformation: The Rise of the Private Economy. New York: Routledge increased. Cheap labor force is still a preference in the labor-heavy production. The lack of peasant workers, which has become urgent in some regions, tells that it is necessary to regulate the cost of the labor force and to refuse from the method, when the advantage of the export production cost is achieved for the account of the wellbeing of the working people. The state has increased the dynamics of export regulation relating to the products with high expenditures of energy and serious contamination of resources.
The pressure on the side of environment and resources has become the main factor in restricting export growth. (Wong 1999, p. 255) Third, the practice of international trade protectionism has become widely spread, and the external environment is not already so favorable for the development of the Chinese export. The country is meeting with antidumping measures more often, than other countries do. Fourth, there is the misbalance of the foreign trade, and the currency exchange of Yuan has stepped into the period of revaluation; export and import of state owned enterprises meet with the growing risks of currency exchanges. In some sense the pressure on the Yuan is growing towards its revaluation, which sets new claims and throws challenges to the state owned enterprises, oriented at export and import. (Wang 2003, p.
The Report on Foreign Market Entry and Diversification
Foreign Market Entry and Diversification Identify and discuss the trends in the global beer markets. Among the trends in the global beer market is the need for consolidation. In the early years of brewing, beer was developed differently in every country to meet the need of that region’s tastes and unique recipes (Thompson, Strickland, & Gamble, 2010). This soon became a problem with the many ...
402).
During the last several years, banking system has made progress. Three of the large four countrys banks were properly developed despite the fact that they still have something to be improved in terms of business control, risk evaluation, and clearness. The agricultural Bank of China (ABC), is planned for be reformed this year. The ABC will be more difficult to change than any of the other banks, tied as it is to China’s drearily developing country finance sector. In September, its nonperforming credit (NPL) ratio was 23.5 %, down somewhat from six months before.
Despite earlier expectation, ABC will not be broken up. Press reports specify that it will get a capital injection from the government but, unlike the others, will not seek a foreign strategic investor and list abroad. Instead, it will likely list in Shanghai. (Wang 2003, p. 402).
China started changing rural cooperatives in 2003 and is looking for revitalizing the whole country financial sector.
Statistics indicates that the country sector is underserved: just 60 percent of country households have opportunity to use to bank credit and farmers have just 15 percent of bank loans and deposits. Acording to Kent, to encourage foreign and domestic banks to set up in rural provinces, the China Banking Regulatory Commission (CBRC) will likely reduce registered and operating capital requirements. CBRC has also said it will process applications to set up in Inner Mongolia, Jilin, Hubei, Sichuan, Gansu, and Qinghai more quickly than those to set up in other areas.(Kent 2002) The Financial Work Conference as well put the China Development Bank on the way to change. The bank will be the first of the three policy banks–established in 1994 to lend according to government policy rather than on a commercial basis–to engage in commercial lending. (Kent 2002) In 1999, China established four asset management companies (AMCs) to arrange approximately RMB 1 trillion ($128.8 billion) in NPLs from the large four countrys banks. Extensively considered to have done a pitiable job of arranging of these assets, the AMCs have however supposedly been given the opportunity to become one of the developed financial service givers once they have implemented their unique mandate. For that reason, in early January 2007, the AMCs declared that they had arranged of their original NPLs, despite the fact that press reports did not talk about if they had effectively disposed of other NPLs. Restructuring plans for the AMCs along the lines of those of the big four are expected to be announced in the first half of 2007.
The Essay on Multinational Company China Market World
PRACTICAL INSIGHT What kind of market can attract a multinational company What can a multinational company bring to a new market, to a new country How can a multinational company improve the lives of the citizens of the new market and profit in the interim What kind of market can foster such a lucrative proposition What kind of an impact can a multinational enterprise generate In fact, China is ...
(Wang 2003, p. 402).
China is determinedly trying to make its financial system corresponding international standards, mainly capital markets. Last January, it created a market system for the Yuan market, which includes five foreign banks and eight domestic. (Market makers quote bid and offer rates, facilitating foreign exchange deals.) In December it extended the program to include 21 banks and eight of them are foreign. According to Kent, in January 2007, PRC officials launched the Shanghai interbank offered rate, or Shibor, a set of market-determined interest rates, similar to Libor, the widely used London interbank offered rate. Shibor should provide a pricing benchmark for derivatives such as interest rate swaps, which China also introduced last January 3 The introduction of new apparatus and instruments are the moving toward a more flexible economic system and a precondition for taking away capital controls and balancing the RMB.
China is still very far from a real success, but these steps, like others similar actions, make it come closer to it. The present Chinese economic changes have resulted in considerable development in ….
