REPORT ON ECONOMIC ENVIRONMENT OF CHINA

SUBMITTED BY GROUP # 5

• YUSRA FATIMA (113P)

• AQEEL AHMED (112P)
• ARIF HAFEEZ (07P)
• REHAN SIDDIQUI (71P)
• S.IRFAN AHMED (92P)
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TABLE OF CONTENTS:

TITLE PAGE NO

1. HISTORY 01

2. GEOGRAPHY
01-02

3. DEMOGRAPHY
03-09

4. GOVERNMENT
10

5. ECONOMY 11-25

6. OPPORTUNITIES FOR PAKISTAN 26-27

7. CONCLUSION 28

8. REFRENCES 29

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 HISTORY:
For centuries China stood as a leading civilization, outpacing the rest of the world
in the arts and sciences, but in the 19th and early 20th centuries, the country was
beset by civil unrest, major famines, military defeats, and foreign occupation. After
World War II, the Communists under MAO Zedong established an autocratic
socialist system that, while ensuring China's sovereignty, imposed strict controls
over everyday life and cost the lives of tens of millions of people. After 1978,
MAO's successor DENG Xiaoping and other leaders focused on market-oriented
economic development and by 2000 output had quadrupled. For much of the
population, living standards have improved dramatically and the room for personal
choice has expanded, yet political controls remain tight. China since the early
1990s has increased its global outreach and participation in international
organizations.

GEOGRAPHY:
• LOCATION: Eastern Asia, bordering the East China Sea, Korea Bay, Yellow
Sea, and South China Sea, between North Korea and Vietnam.
• GEOGRAPHIC COORDINATES: 35 00 N, 105 00 E
• MAP REFERENCES: Asia
• AREA: TOTAL: 9,596,961 sq km
• LAND: 9,569,901 sq km
• WATER: 27,060 sq km
• LAND BOUNDARIES: TOTAL: 22,117 km
• BORDER COUNTRIES: Afghanistan 76 km, Bhutan 470 km, Burma 2,185
km, India 3,380 km, Kazakhstan 1,533 km, North Korea 1,416 km,
Kyrgyzstan 858 km, Laos 423 km, Mongolia 4,677 km, Nepal 1,236 km,
Pakistan 523 km, Russia (northeast) 3,605 km, Russia (northwest) 40 km,
Tajikistan 414 km, Vietnam 1,281 km
• REGIONAL BORDERS: Hong Kong 30 km, Macau 0.34 km
• COASTLINE: 14,500 km

• TERRAIN: Mostly mountains, high plateaus, deserts in west; plains, deltas,

and hills in east

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• NATURAL RESOURCES: Coal, iron ore, petroleum, natural gas, mercury,
tin, tungsten, antimony, manganese, molybdenum, vanadium, magnetite,
aluminum, lead, zinc, rare earth elements, uranium, hydropower potential
(world's largest)

• LAND USE: ARABLE LAND: 14.86%

• PERMANENT CROPS: 1.27%

• OTHER: 83.87%

• IRRIGATED LAND: 545,960 sq km

• NATURAL HAZARDS: Frequent typhoons (about five per year along

southern and eastern coasts); damaging floods; tsunamis; earthquakes;
droughts; land subsidence

• VOLCANISM: China contains some historically active volcanoes including

Changbaishan (also known as Baitoushan, Baegdu, or P'aektu-san), Hainan
Dao, and Kunlun although most have been relatively inactive in recent
centuries

• GEOGRAPHY - NOTE: world's fourth largest country (after Russia,

Canada, and US); Mount Everest on the border with Nepal is the world's
tallest peak

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 DEMOGRAPHY:

• POPULATION: 1,330,141,295 (July 2010 est.)

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• AGE STRUCTURE: 0-14 YEARS: 19.8% (male 140,877,745/female
124,290,090)

• 15-64 Years: 72.1% (male 495,724,889/female 469,182,087)

• 65 Years and Over: 8.1% (male 51,774,115/female 56,764,042) (2010 est.)

• POPULATION GROWTH RATE: 0.494% (2010 est.)

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• BIRTH RATE: 12.17 births/1,000 population (2010 est.)

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• DEATH RATE: 6.89 deaths/1,000 population (July 2010 est.)

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• NET MIGRATION RATE: -0.34 migrant(s)/1,000 population (2010 est.

• URBANIZATION: URBAN POPULATION: 43% of total population

(2008)
• RATE OF URBANIZATION: 2.7% annual rate of change (2005-10 est.)
• SEX RATIO: AT BIRTH: 1.14 male(s)/female
• UNDER 15 YEARS: 1.17 male(s)/female
• 15-64 YEARS: 1.06 male(s)/female
• 65 YEARS AND OVER: 0.93 male(s)/female
• TOTAL POPULATION: 1.06 male(s)/female (2010 est.)

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• INFANT MORTALITY RATE: TOTAL: 16.51 deaths/1,000 live birth
• MALE: 15.84 deaths/1,000 live births
• FEMALE: 17.27 deaths/1,000 live births (2010 est.)

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• NATIONALITY: NOUN: Chinese (singular and plural)
• ADJECTIVE: Chinese
• ETHNIC GROUPS: Han Chinese 91.5%, Zhuang, Manchu, Hui, Miao,
Uighur, Tujia, Yi, Mongol, Tibetan, Buyi, Dong, Yao, Korean, and other
nationalities 8.5% (2000 census)
• RELIGIONS: Daoist (Taoist), Buddhist, Christian 3%-4%, Muslim 1%-2%
• NOTE: officially atheist (2002 est.)
• LANGUAGES: Standard Chinese or Mandarin (Putonghua, based on the
Beijing dialect) (official), Yue (Cantonese), Wu (Shanghainese), Minbei
(Fuzhou), Minnan (Hokkien-Taiwanese), Xiang, Gan, Hakka dialects,
minority languages (see Ethnic groups entry)
• LITERACY: DEFINITION: age 15 and over can read and write
• TOTAL POPULATION: 91.6%
• MALE: 95.7%
• FEMALE: 87.6% (2007)

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 GOVERNMENT
• COUNTRY NAME: CONVENTIONAL LONG FORM: People's Republic of
China
• CONVENTIONAL SHORT FORM: China
• LOCAL LONG FORM: Zhonghua Renmin Gongheguo
• LOCAL SHORT FORM: Zhongguo
• ABBREVIATION: PRC
• Government type: Communist state
• Capital: name: Beijing
• ADMINISTRATIVE DIVISIONS: 23 provinces (sheng, singular and plural), 5
autonomous regions (zizhiqu, singular and plural), and 4 municipalities (shi,
singular and plural)
• PROVINCES: Anhui, Fujian, Gansu, Guangdong, Guizhou, Hainan, Hebei,
Heilongjiang, Henan, Hubei, Hunan, Jiangsu, Jiangxi, Jilin, Liaoning,
Qinghai, Shaanxi, Shandong, Shanxi, Sichuan, Yunnan, Zhejiang; (see note
on Taiwan)
• AUTONOMOUS REGIONS: Guangxi, Nei Mongol, Ningxia, Xinjiang Uygur,
Xizang (Tibet)
MUNICIPALITIES: Beijing, Chongqing, Shanghai, Tianjin
• LEGAL SYSTEM: based on civil law system; derived from Soviet and
continental civil code legal principles; legislature retains power to interpret
statutes; constitution ambiguous on judicial review of legislation; party
organs exercise authority over judiciary; has not accepted compulsory ICJ
jurisdiction
• POLITICAL PARTIES AND LEADERS: Chinese Communist Party or CCP
[HU Jintao]; eight registered small parties controlled by CCP
• FLAG DESCRIPTION: red with a large yellow
five-pointed star and four smaller yellow
five-pointed stars (arranged in a vertical arc
toward the middle of the flag) in the upper
hoist-side corner; the color red represents
revolution, while the stars symbolize the four
social classes - the working class, the
peasantry, the urban petty bourgeoisie, and
the national bourgeoisie (capitalists) - united
under the Communist Party of China

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 ECONOMY:
• GDP - REAL GROWTH RATE: 9.1% (2009 est.)

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• GDP - COMPOSITION BY SECTOR: AGRICULTURE: 10.3%
• INDUSTRY: 46.3%
• SERVICES: 43.4% (2009 est.)

16
• LABOR FORCE: 813.5 million (2009 est.)

17
• UNEMPLOYMENT RATE: 4.3% (September 2009 est.)
• 4.2% (December 2008 est.)

18
• POPULATION BELOW POVERTY LINE: 2.8%

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• INFLATION RATE (CONSUMER PRICES): -0.7% (2009 est.)
6% (2008 est.)

20
• CENTRAL BANK DISCOUNT RATE: 2.79% (31 December 2009)
2.79% (31 December 2008)

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• PUBLIC DEBT: 16.9% of GDP (2009 est.)
15.6% of GDP (2008 est.)

• INDUSTRIES: mining and ore processing, iron, steel, aluminum, and other
metals, coal; machine building; armaments; textiles and apparel; petroleum;
cement; chemicals; fertilizers; consumer products, including footwear, toys,
and electronics; food processing; transportation equipment, including
automobiles, rail cars and locomotives, ships, and aircraft;
telecommunications equipment, commercial space launch vehicles, satellites

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• INDUSTRIAL PRODUCTION GROWTH RATE: 9.9% (2009 est.)

• AGRICULTURE - PRODUCTS: rice, wheat, potatoes, corn, peanuts, tea,

millet, barley, apples, cotton, oilseed; pork; fish

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• EXPORTS - COMMODITIES: electrical and other machinery, including data
processing equipment, apparel, textiles, iron and steel, optical and medical
equipment
• EXPORTS: $1.204 trillion (2009 est.)
$1.435 trillion (2008 est.)

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• IMPORTS - COMMODITIES: electrical and other machinery, oil and mineral
fuels, optical and medical equipment, metal ores, plastics, organic chemicals
• IMPORTS: $954.3 billion (2009 est.)
$1.074 trillion (2008 est.)

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• RESERVES OF FOREIGN EXCHANGE AND GOLD: $2.426 trillion (31
December 2009 est.)
$1.953 trillion (31 December 2008 est.)

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EMPLOYMENT TO POPULATION RATIO:

MAN
WOMEN

BALANCE OF PAYMENT:

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• IMPORT AND EXPORT CLASSIFICATION BY MAJOR COMMODITIES:

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• CONTRIBUTION IN GDP BY VARIOUS ACTIVITY:

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 OPPORTUNITIES:
CHINA AS A LEADING BUSINESS GROWING COUNTRY OF
THE WORLD
China is a diverse and quickly growing world marketplace. Most of the world's
leading corporations now have offices in China. Finding business opportunities in
this booming country is a great way to capitalize on their growing economy. Using
the Internet, you can find business opportunities in China from the comfort of your
home.

Go to Alibaba.com. Alibaba.com is an enormous website based in China. It

specializes in being a business-to-business marketplace. It has over 3,500
employees and members in over 200 countries. On their homepage, you can
browse their site by categories to find the category that bests suites your interest.
Alibaba.com was founded in 1999 and is now one of the largest websites of its
kind.

DEPENDENCE OF PAKISTAN ON CHINA

China and Pakistan are close and friendly neighbors. Pakistan has treated China as
its most important economic partners. Rapid economic development in China and
consequent inter-regional activity has caused increased demand for raw materials,
exchange of parts, components, intermediate products and development of cross-
country production networks/processes.

Such outward linkages are beneficial for resource rich Pakistan in the Chinese
context. It will increase trade and spur investment through deepening of all-round
co-operation for mutual prosperity.

The economy of Pakistan is deeply linked to the Chinese economy. Pakistan highly
appreciates the assistance that China had provided for infrastructure
development/other projects. The development must be carefully synchronised and
we must share information to facilitate and assure the investors of the good returns
and results.

They need to very actively and forcefully promote and facilitate economic co-
operation with high zeal and spirit. The measures undertaken include the
aggressive economic diplomacy. Many companies have signed agreements and

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MOUs worth millions of dollars to cooperate and undertake joint ventures in
various sectors, such as infrastructure, mass transit, communication network,
finances, chemical, fertilizer, automobile energy, and agro-based industries.

A few other agreements are likely to be signed during the upcoming visit of the
President of Pakistan to China. Prospects of further consolidation of economic
relations are bright as the two sides have a lot of potential for further developments
in a number of fields. Moreover, as active supporters of regional economic
integration, both countries can help establish an open and integrated regional
market also through regional economic fore

BILETRAL TRADE BETWEEN CHINA AND PAKISTAN

There is high demand for Chinese goods in Pakistani market. Their experience of
growth in trade is positive due to convenient trade flows and openness measures.
Trade and investment policies are liberal since 80s' and generally WTO compliant.
The pattern has merchandise bias but with high volume of manufactured items.

Trends of trade are very positive as volume of bilateral trade has increased
exponentially during the last seven years. Pakistan enjoys huge export potential to
China due to advantages in agriculture, mineral, chemical, textile and leather
products. Besides, Pakistan has comparative advantage in oil seeds, fruits, base
metals, plastic goods and perfumery etc. China has static advantage over Pakistan
in machinery, transport equipments, chemical products, precious instruments, stone
and plastic articles, home appliances, pearls, precious/semi-precious stones etc.
Man-made filaments, space crafts and aircrafts provide dynamic comparative
advantage to China

AGREEMENTS OF TRADE AND INVESTMENT

On account of the familiarity and common understandings, developed over a long
period of economic co-operation, China and Pakistan have signed many bilateral
agreements, like Free Trade Agreement, Bilateral Investment Treaty, Double
Taxation Agreements, Customs related agreements/procedures, Pak-China Joint
Investment Company, bilateral contracts, 5-Year Framework, MOUs in various
fields/ministries/divisions and other agreements.
China and Pakistan have recently concluded an agreement on trade in Services.
This involves a wider impact than the other trade and investment agreements. The
volume is going to increase after the implementation of this agreement, particularly
in financial and technical services.

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 CONCLUSION AND RECOMMENDATIONS:
The aforementioned challenges are certainly impeding the speedy growth of
investment and trade as per the potential. They can effectively be turned into
opportunities through comprehensive medium and long-term collaborative joint
efforts.

The measures that may facilitate the achievement of desirable goals include timely
implementation of the agreements, creation of enabling environment, person-to-
person contacts to provide confidence and encourage the potential investors,
operationalization of Transit Trade Agreement, regular exchange of information to
enable the stakeholders to realize the ground realities, co-operation in business
laws and procedures between the businessmen of the two countries and a dispute
resolution mechanism to avoid any trade disputes and misgivings, improvement of
security environment, engaging the Chinese private sector on long-term basis for
sustainable economic relations, revamping the processing technologies with mutual
co-operation in potential sectors like seafood and leather products, value addition
in cotton yarn and fabric, chrome and copper ores and other industrial minerals and
precious stones, relocation of industries through restructuring, improvement of
institutional frameworks for better communication and co-ordination between the
government agencies and representative trade and industry bodies, which is
essential for better understanding of business houses.

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 REFERENCES:

1. http://www.indexmundi.com/china/

2. https://www.cia.gov/library/publications/the-world-
factbook/geos/ch.htm

3. http://english.mofcom.gov.cn/statistic/statistic.html

4. http://www.wto.org/english/res_e/statis_e/its2010_e/its10_world_trade_
dev_e.htm

5. http://english.ccpit.org/

6. http://www.stats.gov.cn/english/newsandcomingevents/t20110228_402
705764.htm

7. http://english.gov.cn/about.htm

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