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Your key to successful business in China China’s Overview -Year 2005 Starmass International, Beijing, China

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China’s Overview. Year 2005 Starmass International, Beijing, China. Contents. Demographical key points Macroeconomic key points Imports and exports Impact on global economy Key drivers for future growth. Demographical Key Points. Total population (in million). Year. - PowerPoint PPT Presentation

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Page 1: China’s Overview

Your key to successful business in China

China’s Overview

-Year 2005

Starmass International, Beijing, China

Page 2: China’s Overview

Your key to successful business in China

Contents

• Demographical key points

• Macroeconomic key points

• Imports and exports

• Impact on global economy

• Key drivers for future growth

Page 3: China’s Overview

Your key to successful business in China

Demographical Key Points

• Total population – 1,299,988,000 as at 2004, whereas:

- Male: 51.5%; female: 48.5%

• China’s population reached 1.3 billion on Jan 6, 2005

Total population (in million)

Year

1,292

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1,400

78 80 85 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03

`

Remarks: China in this presentation refers to mainland China only, excluding Taiwan, Hong Kong and Macao.

Page 4: China’s Overview

Your key to successful business in China

Population by Region

Region Shanghai Jiangsu Zhejiang Anhui Fujian Jiangxi Shandong Henan

Population 16.25 73.81 46.47 63.38 34.66 42.22 90.82 96.13

Region Hubei Hunan Guang-dong Guangxi Hainan

Chong-qing Sichuan Guizhou

Population 59.88 66.29 78.59 48.22 8.03 31.07 86.73 38.37

Region Yunnan Tibet Shaanxi Gansu Qinghai Ningxia Xinjiang

Population 43.33 2.67 36.74 25.93 5.29 5.72 19.05

Region Beijing Tianjin Hebei Shanxi Inner Mongolia Liaoning Jilin

Heilong jiang

Population 14.23 10.07 67.35 32.94 23.79 42.03 26.99 38.13

Population by province or city (in million, 2002)

• Hehan is the largest province with population 96.13 million

• Shanghai is the largest city with population 16.25 million

Page 5: China’s Overview

Your key to successful business in China

Distribution Map of China Giant City

• 10 cities with population 4 million and over

• 23 cities with population 2-4 million

• 138 cities with population 1-2 million

• 279 cities with population 0.5-1 million

• 171 cities with population 0.2-0.5 million

• 39 cities with population under 0.2 million

Total 660 cities in China in 2002, whereas:

Beijing

Shanghai

Hong Kong

Page 6: China’s Overview

Your key to successful business in China

Industrialization and Urbanization

• Percentage of urban population: 19.2% in 1978; 40.5% in 2003

• Additional 1-1.5 %, or 12-18 million people from rural to urban per year

• Every two years: an additional Australia

Percent of urban population

percent of rural population

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Page 7: China’s Overview

Your key to successful business in China

Population by Age Group

%

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1964 1982 1990 2000 2003

0-14 15-64 65 and over

• Aging population, 65 and over in 2003: 7.5%

• By 2050, the elder (60 and over) will reach 400 million

• Labor force reached 740 million in 2003; by 2020, will increase to 940 million

Page 8: China’s Overview

Your key to successful business in China

Population with Education Attainments

0%

10%

20%

30%

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50%

60%

70%

80%

90%

1964 1982 1990 2000 2002

Junior College and Above Senior Secondary/Secondary Technical School Junior Secondary School Primary School

• Junior colleague and above reached 55.54 million in 2002, or 5.25% of total population

• Total 2110 universities & colleagues in China in 2003, total 11.87 million students whereas:

- 11.08 million: bachelor or diploma degree

- 651.3 thousand: master degree, and 136.7 thousand: doctor’s degree

Page 9: China’s Overview

Your key to successful business in China

Macroeconomic Key Points

• GDP reached USD 1414 billion in 2003, GDP PPP estimated at USD 6720 billion

• Strong economic growth during 1978-2003, average GDP growth 9.4%, 2004: 9%

• GDP per capita hit USD1095, average growth of GDP per capita 8.1% during 1978-2003

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78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03

GDP (USD, in billion) GDP per capita (USD)

China GDP and GDP per capita

Page 10: China’s Overview

Your key to successful business in China

GDP by Industries

• Industrial sector grew faster than GDP, which was high percent of GDP in 2003 at 52.94%

• Service industry shared 32.5% of GDP in 2003, which was much lower than world average level at 64%, and lower than that of average developing countries at 45%

Agriculture

Industry

Service industry

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USD, in billion

Page 11: China’s Overview

Your key to successful business in China

Economy by Cities with Population > 5m

Top three giant cities in terms of economic scale in 2002:

- Shanghai: USD 65.56 billion

- Beijing: USD 38.94 billion

- Guangzhou: USD 36.38 billion

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Beijing

Tianjin

Shijiazhuang

Shenyang

Dalian

Changchun

Harbin

Shanghai

Nanjing

Hangzhou

Fuzhou

Jinan

Qingdao

Zhengzhou

Wuhan

Changsha

Guangzhou

Chongqing

Chengdu

Xi'an

Ningbo

GDP (USD, in billion) GDP per capita (USD, in hundred)

Page 12: China’s Overview

Your key to successful business in China

Economy by Cities with Population 1-5m

0

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55

Taiy

uan

Hoh

hot

Hefe

i

Xia

men

Nan

chan

g

Shenz

hen

Nan

nin

g

Guiy

ang

Kunm

ing

Lanzhou

Xin

ing

Yin

chu

an

Uru

mqi

GDP (USD, in billion) GDP per capita (USD, in hundred)

Top three cities in terms of GDP per capita in 2002:

- Xiamen: USD 5730 (population1.37 million)

- Shenzhen: USD 5576 (population 4.91 million)

- Guangzhou: USD 5049 (population 7.21 million)

Page 13: China’s Overview

Your key to successful business in China

Imports & Exports

• Total value of imports in 2004: USD 561.4 billion; exports: USD 593.4 billion

• Total value of imports and exports in 2004 reached USD 1.15 trillion, world’s third largest trading nation after U.S and Germany

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78 80 85 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04

Imports ExportsUSD in billion

Page 14: China’s Overview

Your key to successful business in China

Imports by Category of Commodities

Chemical products

13%

Raw materials & misc 16%

Textile, minerals products

16%

Food & beverage2%

Mechanical and electrical products

53%

Mechanical and electrical products in 2002: USD 155.6 billion or 52.7% of total value of imports.

Page 15: China’s Overview

Your key to successful business in China

Imports by Main Countries or Region

Hong Kong2.7%

Malaysia3.4%

Russia2.3%

Singapore2.5%

Germany5.9%

U.S8.2%

South Korea10.4%

Taiw an11.9%

Japan17.9%Others

34.8%

• Japan is the largest importing country to China, USD 74.2 billion in 2003 or 17.9% of total imports value

• Top five importing countries or region to China: Japan, Taiwan, South Korea, U.S & Germany

Page 16: China’s Overview

Your key to successful business in China

Exports by Main Countries or Region

Singapore2.0%

Taiw an 2.1%

France1.7%

Holland3.1%

U.K2.5%

Germany4.0%

South Korea 4.6%

Japan13.6%

Hong Kong17.4%

U.S21.1%

Others28.1%

• China largest exporting country - U.S: USD 92.5 billion in 2003, or 21.1% of total value

• Top five exporting countries or region of China: U.S, Hong Kong, Japan, South Korea, Germany

Page 17: China’s Overview

Your key to successful business in China

Total Amount of FDI Actually Used

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85 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04

USD, in billion

• Total amount of FDI actually used in 2004: USD 60.3 billion, increased by 12.7% than that of 2003

• Total accumulated amount of FDI actually used as at 2004: USD 561.77 billion

Page 18: China’s Overview

Your key to successful business in China

FDI by Main Countries or Region

France6.15U.K

11.44

Germany8.85

South Korea19.69

Singapore23.53

Virgin Island30.17 Taiwan

36.49Japan41.39

U.S44.01

Others57.17 Hong Kong

222.58

• Hong Kong: largest region investor to China – total actually used FDI as at 2003 accumulated to USD 222.59 billion or 44.39% of total FDI

• Top five investors to China: Kong Hong, U.S, Japan, Taiwan and Virgin Island

USD, in billion

Page 19: China’s Overview

Your key to successful business in China

Foreign Currency Reserves

• Foreign currency reserves as at 2003: USD 403.3 billion

• Foreign currency reserves as at 2004: USD 609.9 billion, world’s second largest nation in terms of foreign currency reserves after Japan

-10

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78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04

Page 20: China’s Overview

Your key to successful business in China

Impacts on Global Economy

Nominal GDP in 2002 Real GDP growth Contribution to global economy Countries

USD, in billion % 2002 2003 2002 2003

Global 32,032 100.0 2.8 3.2 100.0 100.0

U.S 10,427 32.6 2.4 3.1 28.0 31.0

Japan 4,004 12.5 0.1 2.6 0.5 10.0

Germany 1,987 6.2 0.2 0.0 0.4 0.0

U.K 1,538 4.8 1.7 2.0 2.9 2.9

France 1,419 4.4 1.2 0.7 1.9 1.7

China 1,241 3.9 8.0 9.1 11.1 11.3

Italy 1,178 3.7 0.4 0.5 0.5 0.6

East Asia 3,637 11.4 5.9 5.8 23.9 20.9

Others 6,601 20.5 - - 30.8 21.6

• China: the sixth largest economic nation in the world in 2002.

• Although China nominal DGP in 2002 was 3.9% of global economy, it contributed to 11.1% of global economy growth, and enjoyed fastest economic growth in the world

Page 21: China’s Overview

Your key to successful business in China

Percentage Distribution of Global Output

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35

1830 1860 1913 2002 2020

U.S U.K Germany China

• China was once the largest economic nation in earlier19 century, dropped down sharply since 1830, lowest as 2.6% in 1913.

• Percentage was increased to 3.9% in 2002, and it will be 25.6% of global output by 2020, become the world’s second largest economic nation

%

Page 22: China’s Overview

Your key to successful business in China

China-led Global Linkages

• Near100% of Taiwan export growth going to China in 2003

• 73% of Japan and 41% of South Korea export growth going to China in 2003

• China is the main engine to drive Asia economic growth

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100

Taiw an Japan South Korea Malaysia Singapore Thailand U.S EU

Share of export growth going to China Chinese share of exports

%

Page 23: China’s Overview

Your key to successful business in China

Share of US Import Market

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80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03

Japan China

• China’s share of US import market surpassed Japan in 2002 at 11.1%

• In 2003, China surpassed Mexico and become US second largest importer after Canada

%

Page 24: China’s Overview

Your key to successful business in China

Share of US, Japan & EU Import Market

0

2

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70 80 90 91 92 93 94 95 96 97 98 99 00 01 02

U.S Japan EU

• China surpassed U.S in 2002 and became Japan’s largest importing nation

• China surpassed Japan in 2003 and became EU’s second largest importing nation after U.S

%

Page 25: China’s Overview

Your key to successful business in China

Share of ASEAN Import Market

0

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1990 1995 2000 2001 2002 2003

Indonesia Malaysia Phillips Singapore Thailand

Shares of ASEAN import market in 2003:

- Indonesia: 5.6%; Malaysia: 6.1%; Philip: 5.9%; Singapore: 6.7%; Thailand: 6.9%

%

Page 26: China’s Overview

Your key to successful business in China

Key Drivers of Future Growth

• Autonomous domestic engine of growth: independent of external demand

• Household, infrastructural development

• Effect of privatization and urbanization

• Strong FDI inflows and exports

• High national saving rate, and high investment rate

Page 27: China’s Overview

Your key to successful business in China

Surging Material Demand

In 2003, China shares of world economy was 4%, but it consumed 25% of aluminium, 27% of steel, 30% of Iron, 31% of global coal and close to 41% of cement, which certainly drove the growth of relevant industries

China's shares in 2003

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World GDP Aluminium Steel Iron ore Global coal Cement

%

Page 28: China’s Overview

Your key to successful business in China

National Saving Rate

Percentage of GDP, 2002

0

10

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40

50

U.S Advancedcountries

EU Developingcountries

Japan China

• China enjoys very high national saving rate, 46% in 2003, which means high investment rate in China

• Since 1990, China maintains national saving rate at about 40%.

%

Page 29: China’s Overview

Your key to successful business in China

More …??

Would you like to know more …?

Contact us:

Add: Rm 401 - 402, Fangxing Building, No. 30 Xueyuan Road,

Haidian District, Beijing, China

Tel: +86 10 82371522

Fax: +86 10 82371540

Email: [email protected]

Website: www.star-mass.com