China, which has earned the reputation of the world's cheapest assembly site, has become a major source of disturbing news this year. Stock market fall, yuan devaluation, slowdown economic growth- the same Chinese news that has been shaking neighboring Asian countries since the beginning of summer, and with them Europe, the United States, and, obviously, Russia. Investors from all over the world in a panic withdrew money from risky assets. Oil, metals, almost all commodities fell in price.
The Chinese economy has grown to such an extent that economic weather around the world depends on its condition. The devaluation of the Chinese yuan by 3-5% shook the world more than the Kazakh tenge, which depreciated by 30%. The fall of the Chinese national currency was supposed to spur the growth of exports, and then China's GDP.
According to the results of the third quarter, the growth rate of the Chinese economy slowed down to 6.9%, the business activity index has been falling for the third month in a row, the October figure was 49.8 points. Compared to Russia's GDP, which is expected to shrink by 3.9% by the end of the year, this growth is impressive. However, given the previous golden years, we are clearly talking about a crisis.
To such an impact on world economy China walked for almost 40 years, having managed to build the same socialism with a human face. The then head of the Communist Party of China, Deng Xiaoping, explained the beginning of capitalist reforms in fact with a phrase that became an aphorism: "It doesn't matter what color the cat is, the main thing is that it catches mice." And balanced by Marx: "Practice is the main criterion of truth."
Practice quickly showed that painting the cat was the right decision. If in 1980 China's real GDP was $338.16 billion, then already in 1990 - $824.12 billion, in 2000 - $2223.69 billion, in 2010 - $6039.66 billion (in 2010 prices). China made a bet on self-sufficiency, self-financing and the rejection of centralized price regulation at the right time, and the result was visible already in the first years.
"I remember the first impressions of both the Chinese themselves and the Russians who visited the PRC in those years: after people discovered that literally on the street it became possible to buy goods that they could not dream of until recently, to convince them of the right path of the party was not required," recalls the associate professor of the department economic theory NRU HSE St. Petersburg Alexander Butukhanov.
Chinese GDP Growth
*in 2010 prices.
On the threshold of reforms, China was literally on the verge of starvation. But as soon as the peasants were left to their own devices, they were allowed to work outside the collective guidelines, it turned out that they could feed not only themselves, but also the rest of the country's inhabitants. The agricultural sector, firstly, solved the food problem, and secondly, it became a kind of training ground for working out market reforms, the economist draws attention. The problem of hunger was finally solved by the end of the 1980s.
Since the 1990s, the country has held first place in the world in the production of cereals, meat, cotton, rapeseed seeds, fruits, leaf tobacco, second in tea production, and is among the top ten world leaders in the production of wool, soybeans, sugar cane and jute. Using less than 9% of the world's arable land, China today provides food for almost one-fifth of the world's population, China's largest news agency Xinhua reported at the end of 2011.
The next most important milestone in the rise of the country from its knees was the policy of "openness to the outside world", when investments from outside began to flow into the country. Important point What distinguishes this stage, including from Russia, is that a significant part of the cash injections were provided by ethnic Chinese from other countries, mainly from Southeast Asia.
From 1979 to 2009, foreign investments amounted to $1,140 billion, of which $940 billion were direct investments. About 70% of foreign money was transferred by huaqiao (Chinese from other countries), says Alexander Butukhanov. In 1991-1995 alone, investments from Hong Kong to China amounted to $18 billion a year, from Taiwan - $16 billion. Outside of mainland China and Taiwan (mainly in Malaysia, Singapore, Thailand, Indonesia and the Philippines) about 50 million Chinese live.
Overseas Chinese and the businesses they work for or own have enormous economic potential. In early 1993, Gert Hofstede estimated it at $200-300 billion - more than Australia's GDP. Since then, this number has only grown. The largest companies headed by overseas Chinese are at the same time among the most notable foreign investors in China, say the HSE.
Russia's GDP Growth
*in 2008 prices.
Another important resource with which Russia was unlucky in the early 1990s was managerial technology, which went to China in parallel with money. This moment is often not taken into account, putting the construction of factories at the forefront, while the adjustment of processes between people plays a very important role, they say at the HSE.
The question of combining capitalism with communist ideology is, of course, not an easy one. In fact, there are not many countries left in the world where the leading role of the Communist Party is officially declared - in Southeast Asia, these are China and Vietnam. So far, we do not see the prerequisites for a multi-party system. If we take the public sector, where there are many enterprises, then the role of the state is very large, in private business, of course, no. At the same time, foreign companies operating in China are calm about the presence of party cells in enterprises at enterprises. Party structures are even called upon to improve discipline or increase productivity. The main argument for - "it works". Interestingly, in the spring in China, the first bankruptcy of a state-owned company occurred - Baoding Tianwei, a manufacturer of electrical power equipment, defaulted on bonds worth $13.8 million. It is controlled by the Chinese likeness of our Rostec. That is, the Communist Party is already making it clear that it will not save just anyone, even in strategic sectors.
Alexander Butukhanov
Associate Professor, Department of Economic Theory, St. Petersburg School of Economics and Management, National Research University Higher School of Economics
Another strong point of China is free economic zones. Initially, the country's authorities clearly outlined where this is possible - port areas and coastal cities, which in a matter of years have become ultra-modern, high-tech enterprises have opened in them. Shenzhen, from the southern houses of which Hong Kong is visible, formally became a city just in 1979, and in 1980 - the first special economic zone in China. Then 30 thousand people lived in it.
Since then, the population has grown 350 times, the 2010 census estimated the population at more than 10 million. Its contribution to China's GDP is estimated at 2.5%, 16.8% of electronics exported from China comes from Shenzhen. Here, by the way, most of the Apple products are produced, in particular the iPhone and iPad. Russian officials and top managers, justifying the need to create such zones in Russia, cite Shenzhen as an example.
Today's steps in the Far East of the Russian Federation vaguely resemble the Chinese approach. It is noteworthy that the first interested are the Chinese: the north of China borders on Russia. Border cities are largely developing due to the proximity to China. One of the brightest examples is Blagoveshchensk, bordering on the Amur River with Heihe (Heilongjiang Province).
Heihe, which officially became a city in 1980, grew literally before our eyes, turning from a village into a trading city with high-rise buildings. Residents of the neighboring city love to photograph their illumination. However, beauty is concentrated mainly near the coast. Window dressing is quite an element of Chinese everyday culture.
Until the ruble fell, the Russians went to spend the weekend in Heihe. Shopping, bowling, cheap restaurants and, as a bonus, the opportunity to earn money by taking on duty-free importation of consumer goods at the border. Since 1999, visa-free entry has been operating here - the entry point to China is available to a resident of any region of the Russian Federation with a foreign passport. In summer, people go to China by ferry, in winter - trucks and tourist buses travel on ice, in the last few years - on a pontoon ferry.
Since 1995, there have been talks about building a bridge across the Amur River - the first agreement was signed by Viktor Chernomyrdin, then head of the government. Protocol events, at which "everything was finally decided and the dates set," take place almost every year, but there is no bridge yet. A month ago, another agreement was signed, they promise to start next year. Joint private investments should amount to about 16 billion rubles.
After the fall of the ruble, Chinese tourists began to come to Blagoveshchensk more often than Russians to the neighboring coast. Jewelry, canned food and sweets went there in the trucks of merchants and in the bags of ordinary Chinese - the region began to feed China for the first time, and not vice versa, local media wrote in February. A significant part of the investment in the region comes from China and Cyprus. Mostly in favor of mining. The main assets of the second largest gold producer in the Russian Federation, Petropavlovsk, are concentrated here.
The foreign trade turnover of the Amur Region in 2014 amounted to $622.8 million, of which exports amounted to $280.4 million, imports - $342.4 million, summed up the results at the local representative office of the Ministry of Foreign Affairs. It is easy to guess that the main counterparty is China, which accounts for 75.1% of exports and 95% of imports. The main export commodities are mineral products, wood and pulp and paper products, machinery, while import commodities also include machinery and equipment, foodstuffs, and agricultural raw materials.
China's own territories bordering Russia and Central Asia are another driver of China's extremely uneven economic growth, economists say. For example, the Xinjiang Uyghur Autonomous Region, which is on the border with Kazakhstan, demonstrates high rates, and Inner Mongolia is also growing, the subsoil of which contains 120 types of minerals. The effect of diverging circles from rapidly developing territories has reached the deep regions quite recently, says Alexander Butukhanov.
If we talk about China's global impact on Russia, then we are talking primarily about the supply of raw materials from our side. In 2013, for example, China imported 281.2 million tons of crude oil worth $219.63 billion (hereinafter, prices are presented mainly for 2013, since it was more stable than the crisis year of 2014). However, in the first place was still electrical equipment, the world supply of which was estimated at $356.04 billion, in the third place - the supply of communication equipment for $74.04 billion.
Over 60% of Russian exports to China are mineral fuels and crude oil. The export of the latter in 2013 amounted to 24.4 million tons, or $19.7 billion, a tenth of all deliveries. In 2014, the volumes grew by almost a third, to 33.1 million tons, but due to falling prices, the cash output increased only to $25.8 billion. thinner.
By the way, in May, the Russian Federation Saudi Arabia in terms of oil production. Cooperation with China in the oil sector is so close that Russian oilmen open settlement accounts in banks in yuan. In October, Bashneft held four tenders for opening accounts in the currencies of China and Hong Kong.
As a result, two 20-year accounts in the ruble equivalent of 1.812 billion are opened at branches of Sberbank and Gazprombank, writes RBC. The company opens two more accounts for 906.2 billion rubles with Rosbank, one of them in Hong Kong dollars. Previously, such accounts were opened by Gazprom, Gazprom Neft and Rosneft.
Companies thus, firstly, are insured against sanctions, and secondly, presumably, they are preparing for the fact that the yuan is one of the world's reserve currencies. Until October 2016, this will not happen, but the IMF has already given a positive opinion.
Russian-Chinese trade and economic ties are on the rise, says Director General of the Russian export center Peter Fradkov. And it's not just raw materials. According to the Federal Customs Service for the first half of 2015, the export of non-commodity goods to China amounted to $5.6 billion, he cites statistics.
However, there is still some imbalance - imports from China account for more than exports to it. "The Center constantly monitors the situation in order to hear the exporters in time and convey their expectations to the state: the correction of such imbalances should be regulated at the state level," the expert says. And Russia has something to offer. There is an inexhaustible potential for the export of wood products - today it accounts for about 10% of total exports to China, fish products - only about 5%, chemicals - about 3%, cellulose, fertilizers, machinery and power equipment.
Sources: Rosstat, Central Bank.
Russia largely depends on China industrial production. Machinery and technical products are a key export item to the Russian Federation. From 2002 to 2014 specific gravity of these goods increased from 15.8 to 36.1%. The share of goods such as textile and knitwear, as well as shoes, fell from about 13% to 6% over the same period, but it must be understood that total exports to the Russian Federation over the years increased from 3.5% to 53.7%.
But China's most significant global export is manufactured goods, which account for 95% of all exports. China is still the largest assembly site. Of course, Malaysia, Thailand, the Philippines and Vietnam are already beginning to claim the role of the PRC in this regard, where the labor force is cheaper. But putting them next to China, where the population exceeds 1 billion people, and the infrastructure works like clockwork, is too early.
Sooner or later, China will be removed from the position of the world's main factory, on the other hand, China itself begins to invest outside. One recent example is the oil fields in Iran, which will have sanctions lifted by the end of the year. China is actively investing in Africa: from 2003 to 2013, investment in African infrastructure increased from $500 million to $20 billion.
In the same 2013, oil imports from Africa provided almost a quarter of China's needs. The positions of the continent are close to those of Russia: oil accounted for 64% of Chinese imports from Africa. Explored reserves here are constantly growing.
Chinese partners are very fond of gifts, we try not to go to negotiations empty-handed. But one day a real opportunity came up. We prepared good gifts for representatives of one large company, but they, embarrassed, refused. It turned out that shortly before this, the management forbade them to accept any gifts from partners, except for a branded souvenir. But there are gifts that you can never go wrong with - the Chinese especially appreciate souvenirs with a national flavor. For the Chinese in general, traditions and culture are very important. For example, to negotiate in Chinese. We have employees who are fluent in it. The notorious small talk is valued higher in the East than in Europe, and a quick transition to business is perceived as excessive assertiveness. It is easy to show elementary courtesy: you can ask how the flight went, how the colleagues you have already met are doing, how the partner’s success in a hobby. There are textbook rules: send and receive a business card with only two hands, be sure to offer tea. For the Chinese, tea drinking is a sacred ritual, a kind of wish for good health and well-being to a business partner.
Anna Kuzmina
Deputy commercial director "Yandex.Money"
It is difficult for small businesses to interact with China, we do not deny it, but now it is one of the most promising markets, which is definitely worth working with. We have been cooperating with Chinese partners for more than 5 years. Now more than 40% of all our suppliers are Chinese companies. And this is no coincidence. The so-called B-brands from China are increasingly occupying their niche in the market, the client increasingly does not want to overpay for a well-known name, because the price difference is huge, and the quality of gadgets is almost the same. In addition, it is simply profitable for online retailers to trade with China. When we began to buy filters and tripods in China, our margin for these groups increased by 40%. The Chinese are a calm philosophical nation, with which it is extremely difficult to demand anything. If the goods are cheap and bulky, it is better to include the defect in the cost price and simply dispose of it. It will be cheaper than shipping. The main problem with Chinese suppliers is enough high percent marriage, so you need to carefully choose a partner.
Alexey Bannikov
CEO GK "Photosklad.ru"
You must always keep what is happening under the most severe control and monitor every little thing, down to the font of the text on the box. If at some point the control over the project is weakened, with a probability of 95% it will have to be redone. The Chinese may genuinely not understand what the problem is. Everything is right for them. Every little thing needs to be discussed during the negotiations. Even better - show how to do it. Sometimes we pointed out a mistake, the Chinese corrected it, but then they made another one. If there is no representative on site, you will have to constantly call the production, otherwise the project may stall altogether. The highest happiness is to find an intelligent support manager. For some time we successfully worked with one factory, then the deadlines began to be delayed, there was no result. It turned out that the support manager was replaced at the factory, and this is almost the key person in the joint project. Therefore, you need to carefully choose not so much the factory as the accompanying person from the Chinese side.
Alexey Aksenov
CEO of iRZ (wireless products for M2M industry)
Our company in China often provides services for finding suppliers for large companies from the CIS. To us precisely because negotiations are a very delicate area. The price list for the Chinese is not a dogma, but a reason to start a conversation. Learning how to talk to them is difficult. Clarity, perseverance and consistency are definitely not the trump cards. Emotions too. Negotiations should take place in a calm, somewhat slow manner. The Chinese do not like long contracts, and you will most likely have to draw them up. Therefore, you need to verbally clarify all the points. And do not be embarrassed that there will be many clarifying questions, the Chinese are ready to patiently answer them. Never try to convict partners of anything. The Chinese immediately fence themselves off from such attempts with a blank wall. The likelihood that they misunderstood something or simply read the contract inattentively is quite high, but this is a working situation for which you must always be prepared. Even worrying about a misunderstanding can be taken as a reproach.
Timofey Kim
Director of TenderPro Group for China and Central Asia
Select the fragment with the error text and press Ctrl+Enter
The question is not new, even, to be honest, already quite old, but for some people who are not particularly interested in economics, it may arise. What are the reasons for the success of the Chinese economy and why such a development could not be achieved in Russia?
[ Article updated 26/6/2019 ]
They will laugh.
Only the lazy did not talk about the economic miracle of China
At the moment, China's GDP is about 11 trillion dollars, according to this indicator, China is the second economy in the world, after the United States.
China's GDP growth has been 8-11% and higher for many years, starting to slow down only slightly in last years. Although, curiously, the US is growing faster than China. I wrote about it separately:
It should be noted that GDP per capita is not the same as the income of the population. GDP is, as it were, the value of all assets per person, although this is a rather rough definition, but it makes no sense for us to go further now.
The fact of China's success in recent decades rarely causes controversy, and this despite the fact that China is formally a communist - socialist country. This is what breaks many patterns, and that is why I want to compare China a little with Russia and the USSR. How did China manage to achieve such success and what was the reason for the rapid growth of the Chinese economy?
Often history is changed not by the people as a whole, but by very specific personalities.
Good. Let's break down the specific steps and actions that led China to success. There weren't many steps.
The correlation is direct, even at the tax level.
As soon as you cut taxes, like Trump did recently, you leave more money business and people, and this is a plus for the country.
I worked there for some time.
At least one region should be preferential in the country, where taxes and duties are small. There are plenty of such special economic zones in China, and no one will suddenly cancel this policy tomorrow, which is why they invest there.
Example with low taxes from the game
Well, in reality, this is not clear to someone.
There is no need to talk about the predictability, stability and predictability of Russia. Russia is just famous in the international arena for the fact that absolutely no one in the world is able to calculate the next step of the Russian Federation.
Maybe this is good for something, but not for the economy.
If there is even the slightest crime, even the smallest, then this is a huge negative factor for investment in the country. And what can we say about countries where crime is at the highest level. Where it is sometimes difficult to distinguish an official from a bandit and it is not clear who came to you to demand something from you.
Respect for private property also goes into this point. In China, the death penalty for corruption, but in Russia, what do they do with corrupt officials?
Get promoted?
There are also interesting things, for example. It is known that excess Massive alcohol consumption increases crime, reduces working capacity, etc. In China, too, of course, they thump, but by Russian standards, this is a child's level. True, there are exceptions, for example in South Korea they drink a lot, even more Russians, you will be surprised, but everything is ok with the economy there.
A billion people with zero ambitions and minimal ambitions who do not know how and do not like to fight. The Chinese have been bullied for centuries. The British mocked in the opium wars, the Mongols mocked, the Japanese mocked. Russians mocked many times, biting off pieces together with everyone at times Russian Empire. For centuries, China has been pressing, using and squeezing out everything, the people there are so downtrodden and submissive, but you can do anything with it, which was done.
But the national consciousness is now waking up among the people, which has never died to the end. For all their downtroddenness and outward modesty, such a population and such a sample, of course, gives rise to geniuses.
Appetites are growing.
China has changed a long time ago and the West is penetrating deeper.
However, all these tons of productions have seriously, very badly polluted the atmosphere, this is a huge and real problem.
In the cities there is already stupidly nothing to breathe, everyone wears masks.
Due to the one-child policy, the population is aging, world money is also not infinite, and they have all been in China for a long time. Global investors are the smartest people in the world, they are very nervous and they have a huge paranoia.
If something suddenly happens tomorrow, for example, the Chinese government throws something out (of course, there are few chances, since they don’t like multi-move and surebets), or for example, there will be data on a slowdown in growth, then trillions of dollars will be taken out of China in the same way as they were taken there, in a matter of days. Capitalists are not interested in anything other than the growth rate of capital in this world.
Now there is a growth of 7% and they have long been slowly starting to transfer the loot to other places. You can increasingly notice clothes and food made in Vietnam, Turkey and even Russia. There are fewer places, all the fatty pieces have already been sawed off and eaten, the competition is growing. And even if 10-30 years ago, foreign markets were ready to digest billions of tons of cheap and bad Chinese products, foreign markets are also not bottomless, they are filling up, and people increasingly prefer quality and many are ready to pay for quality. And "made in China" is, as you know, a guarantee of price, but not quality.
Quality assurance is Germany, whose economy has been doing great for many years.
China strengthened the currency until 2013, now it is weakening again. This is a signal that there may be problems with exports, although the trade balance does not seem to be falling. The exchange rate greatly affects the trade balance and the fact that China likes to play with the exchange rate, the same Trump said a billion times. (china, china, china)
If export earnings fall, you simply weaken the currency. What did Russia do after the fall in oil prices to balance the budget.
Since 2013, the yuan has been weakening, and this is a bad sign for the economy. They are trying to rebuild it for domestic demand, and in many ways it succeeds, but even now, and really never, the Chinese could not be real leaders in terms of innovation, the United States has always beaten them because the core of the US political and economic system is better. China can catch up and be one step behind the leader, but as you know, the Chinese adapt and copy, they rarely come up with something really new, although of course they come up with something and much more than many other countries, but from the USA in this regard they are lagging behind. Although writing this I wanted to check my thoughts.
Checking disproved me:
However, grants (approval of the application, as I understand it) The US is leading. As you can see in the top, Japan and South Korea are countries with a fate similar to China and a leap in development, but Korea and Japan are still very different from China.
Thousands of guns are aimed at Seoul from the north, with nuclear charges.
But in Japan, everything is pretty normal, except for the giant state. debt and the risk of flooding and destruction from the next volcanic eruption, plate shift or whatever bullshit, but in general in Japan and Korea the situation is many times better than in China.
Russia manages, even with a relatively weak support of science, to keep the sixth place in the world in terms of the number of patents, which inspires some hope, but of course it’s sad, since one can only imagine what would happen in Russia if at least someday in history, the state gave normal money for science, or if there was a large private business in the Russian Federation that would support this science.
Science in China, by the way, is strongly supported by business.
Some ships in some wrong seas?
Any desire to return some islands?
Tibet? Chinese firewall? Shootings?
And a bunch of all sorts of horrors that are being done in China have been pushing smart Chinese out of the country for decades. The scale of the brain drain is colossal, Russia never dreamed of it. All smart Chinese have long been in the US, Europe and Canada.
They will never return, and they take away not only their brains, but usually - a lot of money. Half of Canada is bought by the Chinese, half of the US west coast belongs to the Chinese. But don't think that it is buying Chinese capital in the sense of the Chinese government.
It is bought by individual Chinese who raised it in China, this loot has nothing to do with China. It's like buying apartments in Miami by you-know-who. The same situation is happening in China, but only hundreds of times larger.
Russia with her (and mine, in this blog) constant shyzy about thieves and bad power - these are flowers, compared with China. There, too, everything rots from the inside and much is rotten. I have Russian friends who went to China to study, we talked. About what nasty things he told you cannot tell. The man returned home.
If you think that Russia has censorship, write something bad about their power on the Chinese Internet and we'll see how quickly you get in trouble. The problems are quiet, and no media will cry for you later, just no one will know about it. I would never be able to create such a blog in China and write such things, for example, talking about the shortcomings of China in comparison with the United States.
Although you can still raise a lot of money in China, although not everything is terrible there, but the country is still actively developing and is already a world leader, there are problems there too. I just wrote the last paragraph for this, so that you would not think that China is ideal. Do not mix together the economy and power of China, and ordinary Chinese. You don’t interfere in a bunch, for example, the authorities of Russia / Ukraine and the people of these countries?
If, for example, the Russian authorities have 80 yards of dollars in US Treasury bonds (UPD, not anymore, Hurrah!) and a country like rich, this does not apply to ordinary people. For the average Chinese, China is far from perfect. They are still poor, the competition is huge, there is work, but not enough normal work. Although incomes are growing, in Russia people still have more money and assets, each individual person has.
The censorship there is cruel, the living conditions are filthy, the environment is bad.
All the loot in China is the loot of foreigners who can withdraw it at any moment, or the loot of the government, which is not so kind and fluffy. And in general, if they don’t do something with the environment urgently, there will be stupidly nothing to breathe.
If someone thinks that the United States will start a war with China, then it is obvious that such a war is not beneficial to anyone. Their economies are highly dependent on each other, and even considering how Trump scolded China, he will stupidly not be allowed to fight with him, and he himself does strange things, leaving various partnerships that were previously created clearly against China.
The United States is addicted to cheap Chinese goods like drugs, and without the United States, China will very quickly come to an end.
All the alleged US/China frictions are being inflated by the media, this is a political game.
It was necessary to launch as much American dough into the country as possible, this is a clear guarantee that the United States will then be unable to do anything with the Russian Federation in economic terms, if it were 5-10% of the trade turnover.
That is, guaranteed protection from the United States - the presence of American money in the country in large quantities. American money has the most powerful (most powerful) in the lobby world and that would be the perfect defense. This is exactly what China did, tying itself to the US with thin threads, perhaps not even realized.
That's all. The article is already a bit outdated and I'm up for some mistakes. I returned to this article several times later and improved it, but did not completely rewrite it. In any case, I'm glad if you enjoyed reading it.
You will find my other articles about economics in a special section.
This post is a collection of information about the most powerful economies in the world - the result of a small discussion on Facebook. We needed accurate comparative data on the development of economies in countries on a number of items. The most characteristic position, in my opinion, is GDP per capita. More precisely GDP (gross domestic product) per capita at purchasing power parity (PPP). It is this indicator that is the most accurate characteristic that determines the level economic development as well as economic growth.
Latest data collected on Wikipedia laid out in tables, « in the analysis of which it should be taken into account that countries use different so-called systems of national accounts. So the USA, Canada, Ukraine and 28 EU countries presented their data for 2014 in accordance with the new 2008 SNA, other countries, like Russia, are still according to the 1993 SNA, and even then not in full: without taking into account the conditional residential rent and valuation natural resources. The main difference of the 2008 SNA is that it additionally takes into account intellectual property, derivatives financial instruments, spending on research and development and armaments. Thus, the addition of new accounting items leads to a significant increase in macroeconomic indicators (including GDP per capita at PPP), especially for countries with highly developed technologies. This may serve as a justification for additional issuance of cash.”
Despite some differences in the tables, it can be seen that for the most part, the analysis data are almost similar, and the best indicators are not at all in such giants in the production of products and technology development as the USA, Japan, Germany, China, etc. According to this indicator ahead of the rest Qatar, Luxembourg, Macau, Norway, Singapore, Switzerland, etc.
This material is compiled according to a different criterion: simply the total annual volume of nominal Gross Domestic Product. Whoever has it more, who produced the most various products, that country has a higher position in the ranking. It's that simple.
Providing data on the economies of the countries of the World below, as a very visual representation of their power, I give a simple example in the form of a picture: countries with economies less than just one of the US states - California.
As you can see, this list includes − all countries of the world except USA, China, Germany, England and Japan. Impressive…
Unfortunately, at the time of writing this article, I was able to find comparative data for dozens of the most developed industrial countries, but not later than 2012. It's a pity, but, I believe, my reader will still get a more or less general idea of \u200b\u200bthis information. And we will all be waiting for such information on the Web in the coming years.
Now this site has updated data, which reflects similar information about which those who wish can get acquainted with more recent data.
Interesting, and perhaps very necessary, information about countries with least developed economy: an article with the title is also available on this site.
The rating of the strongest countries in the world is compiled according to the criterion of nominal GDP, it also takes into account the ever-increasing influence of the East on the economy of the planet. Russia in the top ten states strengthened in ninth position.
GDP$15,094,025 Capital Washington Population 313 232 044 people Year of foundation 1776 Territory 9,518,900 km2 (without dependent territories). US economy has held the lead for the past 100 years. Its components are the world's largest banking system and stock exchange, transnational corporations, highly productive Agriculture and leadership in the innovative and high-tech industry, in particular the computer and telecommunications (Apple, Microsoft). In 1732, Great Britain decided to close hat factories across America - and obliged the colonists to buy expensive hats made in English factories. They say that such dictatorship was one of the causes of the American Revolution and the subsequent economic boom in the country.
Currently, 139 of the world's top 500 companies are headquartered in the US, almost twice as many as any other country. About 60% of the planet's foreign exchange reserves are converted into US dollars and only 24% into euros. The country has deployed one of the most influential financial markets peace.
In the field of information technology, the United States has no equal. So, in the ranking of Business Week magazine, out of 100 IT companies, 75 represent the United States, and in the first twenty there are 17 "Americans", including Apple, Microsoft, IBM, Adobe and others.
According to statistics, during the US Football Championship, the average American spends 10 minutes a day discussing matches during work hours. The damage is more than $800 million.
The first skyscraper in the world appeared in 1885 in Chicago. For 2011, only 4 of the 25 tallest buildings on the planet are located in the United States.
In the US, the children of wealthy parents do not live on their money, but try to build their own careers, relying only on their education and connections acquired during their studies.
GDP$7,298,147 Capital Beijing Population 1 347 374 752 people Year of foundation 1949 (PRC) Territory 9,596,960 km2 China at the beginning of the 21st century is a space and nuclear power that by 2020, according to the plan of the Communist Party of China, should catch up with the United States in terms of total GDP income. Exports provide 80% of China's government foreign exchange earnings. The country leads in the production of more than a hundred types of products, of which the most advanced are automotive and textile. The Chinese economy is the fastest growing in the world; its consistent growth rate is about 10% over the last 30 years. The country is also the largest exporter and second largest importer of goods. China's per capita GDP is $7,544. According to the average estimates of experts, in 8-10 years the absolute figures of China's GDP will catch up and, perhaps, surpass those of the United States.
Provinces in China's coastal regions tend to be more industrialized than those in peripheral regions. By the way, the territories of Hong Kong and Macau are de facto independent and have special status. You need a special permit to visit them.
The national currency is the yuan, which measures the value of the Chinese "people's money" renminbi (RMB). The yuan exchange rate is set by the state, besides, it cannot be purchased abroad. 1 euro costs about 8 yuan, 1 yuan is a little more than 5 rubles. The Starbucks chain of coffee shops in China is much more famous and stronger in various indicators than the fast food restaurant McDonalds.
The population of China in 2012 was over 1.3 billion people. According to average estimates, it will stop growing by 2030, when it will reach 1.465 billion
Annual exhibitions of achievements in the field of high technologies are held in China, the most famous of them is the Canton Fair in Guangzhou (CECF, Canton Fair). It is one of the most important events in the world of production and trade.
GDP US $5,869,471 CapitalPopulation 126,400,000 people Year of foundation 660 BC e. Territory 377,944 km2 In terms of GDP and industrial production Japan ranks 3rd after the US and China. High technologies have been developed - electronics and robotics, as well as transport engineering, including automobile, ship and machine tool building. The fishing fleet is 15% of the world. Agriculture is subsidized by the state, but 55% of food is imported. In the three decades since 1960, Japan experienced rapid economic growth as a result of the post-war "economic miracle". On average, its rates were 10% in the 1960s, 5% in the 1970s, and 4% in the 1980s.
Japan has a high degree economic freedom: The government works closely with the manufacturer, stimulating its development. The main focus is on science and high technology. All this, as well as strict labor discipline, contribute to the rise of the Japanese economy.
A distinctive feature of the country is "keiretsu" - associations of manufacturers, suppliers, distributors around powerful banks, as well as relatively weak international competition in domestic markets. In addition, there are many more social than industrial arrangements: for example, the guarantee of lifetime employment in large companies.
The three main banks in the country - Mitsubishi UFJ Financial Group (MUFG), Mizuho and Sumitomo Mitsui Financial Group (SMFG) - are now overflowing with deposits.
Japan is the world's "robot capital". In terms of the number of industrial robots used, it overtakes even the United States
MUFG alone has 129 trillion yen ($1.6 trillion) in deposits and is the second largest bank in the world. The problem is that MUFG does not yet know how to dispose of this money.
GDP$3,577,031 Capital Berlin Population 81 751 600 people Year of foundation 1990 Territory 357,021 km2 Economy of Germany- the largest in Europe. The engine of foreign trade is industry, which makes up a large share of GDP. Agriculture and energy are also developed: the country is a confident leader in the production of wind and solar generators, information and biotechnologies. Germany is the 2nd exporter in the world: a third of national production goes abroad. Germany has a leading economy in the European Union and is the main creditor for most European countries, including crisis Greece. Most of the country's products are related to technology: these are cars and equipment. The chemical industry is also widely deployed. The largest German companies operating in these industries have branches, research centers and production facilities around the world.
Among them are the famous automotive concerns Volkswagen, BMW, Daimler, the chemical companies Bayer, BASF, Henkel Group, the Siemens conglomerate, the energy companies E.ON and RWE, or the Bosch group. Cities such as Hannover, Frankfurt and Berlin host the largest annual international exhibitions and congresses.
Germany is a leading manufacturer of wind turbines and a major developer of solar energy technologies in the world.
At the end of the 19th century, Great Britain, in an attempt to protect its market from second-rate imports, obliged German goods to be labeled "Made in Germany".
Now Germany is experiencing a real "boom" of the automotive industry. It owes this to its key sales market - China.
However, after a couple of decades, the quality of goods from Germany has improved so much that this marking has become a mark of the highest standard.
GDP$2,776,324 Capital Paris Population 65 447 374 people Year of foundation 843 (Treaty of Verdun). Territory 674 685 km2 France by total economy occupies a leading position in the EU and consistently enters the top ten in the world. Leading in mechanical engineering, chemical and aerospace industries. In terms of agricultural production, it is ahead of Germany, and in terms of agricultural exports, it is ahead of the United States. The share of wines in exports is traditionally high. major center tourism: more than 75 million travelers visit France every year. The French economy is the fifth largest in the world and the second largest in Europe (after its main partner, Germany). The country entered the recession of 2008-2009 later than everyone else and was able to exit earlier than most comparable countries. From January to March 2011, French GDP growth was more dynamic than expected and amounted to 1%. One of the best performance in Europe!
France is a nuclear power and one of the five permanent members of the UN Security Council, and it is also the most visited country in the world. Paris can be called the tourist capital of the planet, and the Eiffel Tower is the most popular attraction on Earth. These facts automatically make France the champion of world tourism, which makes up a large share of the revenue state budget. By the way, tips here are already included in your bill and amount to 15% of the order amount.
It is the most famous wine producing country in the world. Wine was produced here even during the invasion of the Romans under the leadership of Julius Caesar. According to statistics, 72% of the French have difficulty understanding the numerous wine brands.
Champagne was first produced in France in the 17th century. The drink was immediately nicknamed "devilish" - it blew up the barrels in which it was stored
Only the legendary Bordeaux (Bordeaux) has more than 9,000 varieties! The best liqueurs in the world are also produced in France.
GDP$2,476,908 Capital Brasilia Population 189 987 291 people Year of foundation 1822 Territory 8,514,877 km2 Brazil has the largest economic potential among Latin American countries and produces a variety of products: from petroleum products, steel and consumer goods to computers, cars and planes. One of Brazil's main exports is coffee. The country also leads in the production of sugar cane, from which ethanol is produced. Brazil runs one of the fastest growing economies in the world, with its GDP growing at an average rate of over 5% per year. The country still maintains a high level of social inequality, inherited by the state from the time of the long colonization by Portugal. However, it has declined in recent years.
The 1970s were the beginning of the Brazilian "economic miracle". It was at this time that the successful National program, providing for the replacement of gasoline with more environmentally friendly and cheaper ethanol. Within its framework, the government also obliged the largest automobile concerns to assemble only those models that can run on ethanol.
Now more than a third of GDP is provided by agriculture. The most important fact: Brazilians own 46% of the world market for Arabica coffee - the best coffee. At the same time, this state is the most controversial in Latin America in terms of investment. All large companies tend to be highly monopolized and managed by closed groups with state participation. The country has a number of customs prohibitions on imports, which makes it difficult to buy household appliances.
You can get to Mount Corcovado, where the statue of Christ the Savior stands, by rail - a train with two trailers rushes up the slopes entangled in the jungle
According to Forbes (2011), Brazil ranks eighth in the world in terms of the number of billionaires.
GDP$2,417,570 Capital London Population e 62,698,362 people Year of foundation 1801Territory 243,809 km2 Main export items– mechanical engineering, manufactured goods and chemicals. The industrial corporation British Petroleum, which occupies the 2nd place in Europe in the ranking of the largest, allows saving on the import of petroleum products and brings significant profit. The UK is also the world's second largest exporter of white clay, which is used to make porcelain. Many historians tend to believe that if the Great October Revolution had passed Russia, the country would have developed along the path of Great Britain. Today Britain is one of the most globalized countries in the world. London, along with New York, is the world's largest financial center and has the largest GDP among European cities.
An important role in the British economy is played by the pharmaceutical industry and oil production - the country has oil and gas reserves in the North Sea in the amount of about 250 billion pounds. Britain carries out 10% of world exports of services - banking, insurance, brokerage, advisory, as well as in the field of computer programming. The country is currently ranked 4th in the world (and 1st in Europe) in the World Bank's Ease of Doing Business Index.
The UK National Health Service is the third largest employer in the world after the Chinese Red Army and railway India.
According to a tradition established at the beginning of the 20th century, the birthday of the monarch is celebrated in the UK on one of the Saturdays of June - regardless of the actual date.
Despite the deep integration (including economic) of all the countries of the Kingdom, you will be refused if you wish to pay in Scottish pounds in stores in England, Wales or Northern Ireland. Most Brits don't even know what that money looks like!
GDP$2,198,730 Capital Rome Population 56 995 744 people Year of foundation 1946 Territory 301,340, with islands 309,547 km2. Italy is a global supplier home appliances, one of the leaders in automotive and industrial equipment. Exporter of food products: cheese, pasta, wine, olive oil, canned fruits and vegetables, as well as ready-made clothing and leather shoes. At the same time, Italy has few natural resources and imports most raw materials and more than 80% of energy. After the Second World War, Italy went through a long path of significant economic transformation: starting from a total backlog, it achieved a developed industrial economy. Per capita income was three times less than in the same period in the United States. Almost half of the country (42.2%) was employed in agriculture. Currently, according to the IMF and World Bank, Italy's economy is eighth in the world and fourth in Europe in terms of nominal GDP, and tenth in the world and fifth in Europe in terms of PPP GDP.
Italy is heavily oriented towards foreign trade. Many of her food products are known all over the world. So, legendary Italian wines, cheeses, pizza are exported. Almost all products are marked with a special DOC (Denominazione di origine controllata) mark, which is a designation of the highest quality - this helps the foreign consumer to “weed out” simply similar products (for example, the German Gambozola cheese is an imitation of the Italian Gorgonzola).
Italian fashion houses Versace, Gucci, Prada, Cavalli, Dolce & Gabbana, Armani and others are widely known.
The status of the most expensive car was acquired by the Italian sports car Ferrari 250 GTO of 1962, sold in 2012 for 35 million US dollars.
Motorists are familiar with the names of Italian car brands: Ferrari, Maserati and Lamborghini.
GDP$1,850,401 Capital Moscow. Population 143 030 106 people Year of foundation 862 (beginning of Russian statehood). Territory 17,098,246 km2. Russian economy characterizes a significant dependence on energy prices. According to the data Federal Service state statistics, Russia's exports for 65.9% consists of minerals. The remaining share is made up of metals and precious stones (16.3%), products chemical industry, cars and equipment. Russia is historically rich in intellectual resources. Unfortunately, most of them realize their potential in the West. For example, Max Factor was founded by Maximilian Faktorovich, who opened his first store in Ryazan and emigrated in 1904. It is also worth remembering Google founder Sergey Brin and Daimler engineer Boris Lutsky.
Thanks to the economic reforms of the 1990s, most industrial assets were privatized in Russia, with the exception of energy and defense enterprises. The country's main problem is its heavy dependence on energy resources especially oil and gas. The stock market is also on its way to becoming and is considered by many to be speculative. By the way, since 2011 Moscow has the highest concentration of billionaires in the world.
According to the calculations of the consulting giant PricewaterhouseCoopers, by 2014 Russia will overtake Germany in terms of GDP and enter the top five countries.
Negotiations on Russia's accession to the WTO began in 1995, the accession itself will take place in September 2012
A large influx of foreign investment and a new stage in the development of the economy, according to experts, should follow in the near future - they are associated with world-class sports events: the Sochi Olympics in 2014 and the World Cup in 2018.
GDP 1,430,020 US$. Capital New Delhi. Population 1 210 193 422 people Founded in 1950 (full independence from the UK). Territory 3,287,590 km2. Economy of India covers all sectors: from agricultural production to industry. 67% of the working-age population is directly dependent on agriculture, which accounts for a third of GDP. India is the largest exporter of tea and has the largest number of cattle in the world. At the same time, the defense, nuclear and space industries are highly developed. In the 17th century, India was the richest country in the world - until the arrival of colonizers from Great Britain. The Dutch, Danes, French, Portuguese and other peoples fought for trade privileges here. The country is the birthplace of algebra, trigonometry and chess. Now India is a vibrant and diverse state, its economy is increasingly integrating with the world economy.
The economic reforms carried out in the country since 1990 have far-reaching consequences. General Electric Capital considers this country unique, PepsiCo considers it the fastest growing, and Motorola is confident that India is becoming one of the world's leading powers. Currently, the state is dynamically ascending to the position of the world leader in the IT sector.
One of the main advantages of India is the high qualification and relatively low cost of labor, which is actively used by transnational corporations. Now, in terms of GDP in terms of purchasing power parity, India has taken the 4th place in the world, and in 2050 its volume will overtake the American one.
The monument-mausoleum of the Taj Mahal is a symbol of the tender love of King Shah Jahan for his wife, the beautiful Mumtaz Mahal
Despite rapid economic growth, India continues to face social inequality and high level unemployment.
Text Dmitry Zolotavin, financial consultant of A-Club in Tyumen, Alfa-Bank
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Just four decades ago, a country like China had a rather weak, lagging economy. Happened over the years economic reforms, which made the country's economy more liberal, is considered to be the Chinese economic miracle. The pace of economic growth over the past 30 years is incredible and astonishing: on average, 10% per year increased country's GDP, and GDP per capita grew by 9%. Today, China occupies a leading position among the world's economies. Let us consider how this country managed to achieve such indicators, how the economic miracle happened, what are its causes and what conditions preceded it.
China in the middle of the twentieth century
After the end of World War II, China stood at a crossroads and did not know what to choose: a liberal capitalist or, following the example of the great power of the USSR, a socialist path of development. The civil war that shook the country until 1949 led to the secession of the island of Taiwan and the establishment of the People's Republic of China, led by Mao Zedong.
With the advent of the Communist Party, the painful construction of socialism begins: the nationalization of property and the implementation of agrarian reform, the implementation five year plans development of the economy ... Accepting assistance from the USSR and focusing on the political and economic system of its socialist neighbor, China is industrializing the economy. Sometimes it was necessary to resort to harsh and uncompromising methods.
However, after 1957, relations between China and the USSR cooled down, and Mao Zedong, who did not share the views of the then Soviet leadership, decides to implement new program dubbed the "Great Leap Forward". The goal of the ambitious program was a dramatic development of the economy, but the new direction was unsuccessful and had tragic consequences for both the people and the Chinese economy as a whole.
In the 60s, the country is experiencing a severe famine, a cultural revolution and mass repression. Many government instruments ceased to function, the communist party system collapsed. But in the early 70s, the government took a course to restore party organizations and improve relations with the United States. After the death of the "Great Pilot" Mao Zedong in 1976, the country found itself in a difficult economic situation, unemployment increased, the card system was introduced.
From the end of 1976, Hua Guofeng became the head of China. But the actual reins of power are taken over by Deng Xiaoping, a politician who fell into the millstones of the Cultural Revolution and was restored to the post of Vice Premier of China in 1977.
Considering the Great Leap Forward program to be largely erroneous, Deng Xiaoping, relying on the support of the Communist Party, begins to implement a program to modernize the economy. In 1978, at the next plenum of the Communist Party, the course towards a socialist market economy was officially proclaimed, in which two economic systems would be combined: planned-distributive and market.
The new government path is called the course of reform and opening up. Xiaoping's liberal reforms are based on a gradual transition economic structures on market rails and the preservation of the communist system. assured that all transformations would take place under the leadership of the Communist Party, and the dictatorship of the proletariat would be strengthened.
If we talk about new reforms briefly, then the Chinese economy should be focused on export production and massive attraction of investments. From that moment on, the Celestial Empire proclaims itself a country open to expanding ties with other states, which attracted foreign investors. And the liberalization of foreign trade and the creation of territories of special economic zones for foreign entrepreneurs led to an unprecedented increase in export indicators.
First, Xiaoping reduces state control over many sectors of the economy and expands the managerial functions of business leaders. The development of the private sector was encouraged in every possible way, there are stock markets. Serious transformations affected the agricultural sector and industry.
In the course of the entire reform of the Chinese economy, four temporary stages can be distinguished, carried out under a certain slogan. The first (from 1978 to 1984) stage, involving transformations into countryside, the creation of special economic zones, had the following slogan: “The basis is a planned economy. Supplement - market regulation.
The second (from 1984 to 1991) stage is the shift of attention from the agricultural sector to urban enterprises, expanding their field of activity and independence. Market pricing is being introduced, the social sphere, science and education are undergoing reforms. This stage is called "Planned Commodity Economy".
The third (from 1992 to 2002) stage was held under the slogan "Socialist market economy". At this time, a new economic system, implying the further development of the market and determining the instruments of macroregulation state control on a new basis.
The fourth (from 2003 to the present day) is designated as the "Stage of improving the socialist market economy."
The Chinese economic miracle began with transformation. The essence of agrarian reform was the abolition of the then existing people's communes and the transition to family contracts with a single collective property. This meant the transfer of land to Chinese peasants for a period of up to fifty years, part of the production received from this land was given to the state. Free pricing for peasant products was also introduced, and market trade in agricultural products was allowed.
As a result of such transformations, agriculture received an impetus for development and emerged from stagnation. The new established system of collective property and family contracts qualitatively raised the standard of living of the peasants and helped to solve the food problem.
economic system industrial enterprises was almost freed from directive planning, they were supposed to be turned into self-sustaining enterprises with the possibility of independent marketing of products. Large strategic enterprises remain under state control, while medium and small enterprises are given the right not only to manage their business, but also to change their form of ownership. All this contributed to the fact that the state focused on improving the state of affairs in large state-owned enterprises and did not interfere with the development of the private sector.
The imbalance in the production of heavy industry and consumer goods is gradually decreasing. The economy is starting to turn towards growth in the production of goods for domestic consumption, especially since the large population of China contributes to this.
By 1982, as an experiment, some coastal regions of China declared themselves special economic zones, and after the 1984 plenum, 14 cities in total were approved as special economic zones. The purpose of the formation of these zones was to attract foreign investment in the industry of China and the development of new technologies, the acceleration of the economic development of these regions, the entry of the country's economy into the international arena.
The reforms also affected the tax, banking and monetary system. Value-added taxes are being introduced, a single income tax for organizations. Most of the revenues began to flow to the central budgets thanks to new system distribution between local administrations and the central government.
The banking system of the country was divided into state banks, conducting economic policy governments and other financial institutions commercial basis. The exchange rates of foreign currencies were now launched into "free floating", which was regulated only by the market.
The Chinese economic miracle begins to appear already in the late 80s. The results of the transformations had a qualitative impact on the lives of ordinary citizens. Unemployment rates are reduced by 3 times, retail trade turnover is doubling. By 1987 the volume of foreign trade had quadrupled compared with 1978. Billions of dollars of foreign investment were attracted, and by 1989 there were 19,000 joint ventures.
Speaking of China, it manifested itself in a decrease in the share of heavy industry and an increase in the production of consumer goods and light industry. The service sector is expanding significantly.
It struck with unprecedented growth rates: 12-14% in the early 90s. Many experts during these years spoke about the phenomenon of the Chinese economic miracle and predicted that China would become the economic superpower of the 21st century.
Like any coin, the Chinese reforms had two sides - positive and negative. One of these negative moments was the threat of inflation, which followed as a side effect of the growth in labor productivity after reforms in the agricultural sector. Also, as a result of the price reform, the situation in the industrial sector worsened. Unrest began, resulting in student demonstrations, as a result of which General Secretary Hu Yaobang was dismissed.
Only in the early 90s, the course of acceleration and recovery proposed by Deng Xiaoping economic environment helped overcome the overheating of the economy, create a system to control inflation and the development of the country.
So, now for the reasons. Studying the phenomenon of China's economic miracle, many experts put forward the following reasons for the economic recovery:
However, China's main economic progress has been the rejection of "shock therapy" and the gradual formation of a market mechanism that has restored the economy through effective market regulation.
What have four decades of China's wise reforms led to? Let's consider the main indicators of the economy further. Today's China is a powerful nuclear and space power with modern industry and developed infrastructure.
In the three quarters of 2017, China's GDP reached about 60 trillion yuan. This is 6.9% in annual terms. The increase in China's GDP in 2017 is 0.2% over the period last year. The share in the GDP of the agricultural, industrial sectors, and the service sector is increasing by an average of 5-7%. In 2017, the growth trend of innovative and high-tech sectors of the economy continues.
In general, despite a slight slowdown in growth rates, the Chinese economy (it is rather difficult to briefly describe this phenomenon) today maintains the potential for long-term growth and continues structural reforms.
Having created market mechanism in the economy, the Chinese government plans to further improve it, while showing the benefits of socialism. However, experts make both optimistic and pessimistic forecasts for the development of the Chinese economy. Some are sure that it will be difficult to resist the growing economic, political and social problems while maintaining communist power. Growing emigration to developed countries, the gap between the poor and the rich can reduce the effectiveness of state power and the role of the party. In contrast to them, other experts argue that, after all, a hybrid of socialism and the capitalist market is possible due to the originality of the Chinese nation and the mentality that is unique to it. It remains only to say that time will put everything in its place.
According to the latest official information, the growth of the Chinese economy has developed so rapidly that today everyone unanimously declares with confidence that it is the Chinese economy that has become the second in the whole world! The question is what explains fast growth China's economy is not too complex in modern world, because, after analyzing the market prices and purchasing power parity of this country, it immediately becomes clear that China must necessarily lead in the world rankings.
World experts in the field of economic development argue that the growth rate of China's economy has increased so much in recent times that even exchange rates, especially the dollar, cannot in any way affect the fluctuation of the Chinese economy in the leading positions in the world. Some of them are of the opinion that soon this country will even be able to overtake financial indicators Japanese GDP.
Most recently, the director of the State Monetary Administration of China announced that it was his country that became the owner of the second economy in the world. But despite this, he noted that the Chinese government is ready for the fact that subsequently growth economic situation in the country, China will have to experience some slowdown in such a rapid development trend national economy.
But, despite the speech of the representative of the Chinese government, it is still impossible to accurately and confidently say that the country will be able to overtake the economy of Japan, which has been holding a leading position in the world for four decades. Today it becomes clear that purchasing power parity is a clear indicator that China, in fact, ranks second among the world's economies. The reason why it has not yet been officially announced that this particular country is one of the leaders of the world economy is that at the moment economic indicators China is constantly underestimated.
To date, in the comparative table, China's GDP has nearly matched that of Japan's: $4.900 trillion versus $5.080 trillion. As for Chinese economists, they say that in order for their country to finally be able to overtake Japan in the world ranking of economic development, it is necessary to remove the main obstacle, which is the yen.
According to the report of the United Nations, it is China, together with India, that will become the territories where the most rapid economic growth will take place. In addition, one should pay attention to the fact that the main reason for the rapid growth of the Chinese economy is that it is precisely such a promising goal that the government of the country itself has determined for itself. Without a doubt, Chinese officials have managed to achieve clear success towards achieving the final goal: already in 2010, the Chinese economy became the third largest in the world. Today, the trend towards rapid and rapid growth is increasing more and more.
Thus, economic growth was 8%, as planned by the Chinese government. At the same time, industrial production increased by as much as 11%, as previously promised by the Chinese Minister of Industry.
Despite the fact that during a constantly developing economy, China was acutely threatened by a recession, she managed, nevertheless, to maintain a fairly impressive growth rate of the national economy. The government began to improve the state of the economy by adopting a special stimulus package for the economy and a sharp increase in bank lending.
To date, the rapid growth of the Chinese economy is planned due to the growth of foreign trade turnover, especially exports by 15%. Due to the rapid economic growth of China in other countries, the unemployment rate is increasing. In addition, for the same reason, other countries are losing their influence on the world market. That is why financial experts predict that in the near future:
Free trade violations are already known today: Beijing forces its American counterparts to sell books, films and music exclusively in cooperation with Chinese state-owned companies.
But, despite some problems that appear in the Chinese economy, the government is successfully managing to deal with them. So, the expected results have already been observed recently, that is, consumers are increasing their spending. According to official information, the Chinese government plans to increase the consumption of its population in order to turn the national economy into an engine of economic growth.
In addition, it should be noted that the government is currently implementing a large-scale program for state stimulation of GDP growth. Thus, it prepares the entire economy of the country for very strict structural reforms that can free the economy of the role of exports and investment in it. In the future, it is planned to increase investments abroad in order to ensure sufficient profitability of its foreign exchange reserves. In addition, the government is determined to acquire securities, which are owned by commodity companies.
