China is one of the Asian countries, definitely which going to dominate the world in next few years. The main objective of this article is analyzing China’s economy situation and their industrial policies to make their markets effective. But firstly we have to Understand some interesting facts of China. So you read few lines Facts about China.
1. 1/5 th of world population.
2. Became a republic after defeat of Japan in 1945, the people's Republic established on 1 OCT 1949 by Mao Zedong.
3. Mao began Cultural Revaluation in China. He was ruler whose policies killed at least 30 million Chinese through famine in 1958 - 1961.
4. Early Chinese inventions include paper, printing, silk, kites, umbrellas, the abacus, porcelain and gunpowder.
5. Beijing is called as Forbidden city which covers 178 acres with 90 palaces and courtyards, 980 buildings and 8,704 rooms.
6.Shanghai is the largest city in China.
7. The literacy rate in China is 95.9%.
8. China is ranked as the world's second-largest economy. It is the largest exporter and second-largest importer of goods in the world.
9.China’s money is called Renminbi meaning the peoples currency. Yaun and Renminbi are same.
10. Brazil looks to follow some China’s industrial policies.
Economic Facts and Analyzes
1. China is the Largest debt holder ($1.7 Trillion) on US. Japan get second place ($768.8 billion) in US debt. This is good for China's economy. If Dollar depreciates, China's export and foreign reserve will affect.
2.70% of China's foreign exchange reserve in terms of US dollar.
3. Percapita Income of China is 7.8% for urban residents and over 10% for rural residents. It shows that Contribution of Rural areas is very efficient. So food Inflation might not be increasing next few years.
4. China gets second place in GDP growth in world's ecnomy. Its GDP is over $7 trillion. It helps China to get high foreign investment because Most of the Emerging markets struggling like Indian Capital marktes, Bazil Capital markets etc. The benefit is volatility in US markets are not much affecting Chinaese markets.
5. Investors across the world see China is the best market for investing money safely with enough return.
6. However, China's economy is struggling due to continuous raising of inflation (6.6%).
7. China's Consumer Confidence Index is 106.So demand for Chinese products will increase as well as Inflation also will increase and there will be some more appreciation in their currency on USD. SO this is the biggest threat for China and it will be challengeable.
Industrial Policies of China
1. Chinese government promised there would be a gradual opening of the market to foreign companies.
2. The Chinese government is more than happy to keep the focus on the currency because it's not the real problem.
3. China either directly or indirectly Guiding their private sector to fulfilling their economic needs.
4.China has broken Fundamental communism policies on Industries. That mean they follow scientific communism.
