Where is China? A little bit of Chinese history Basic economic facts What does it look like?

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2 Where is China? A little bit of Chinese history Basic economic facts What does it look like?

3

4 China

5 World s 4 th -largest country (after Russia, Canada, and US); Mount Everest on the border with Nepal, is world's tallest peak Area: 3,705,405 square miles Climate: Extremely diverse; tropical in south to subarctic in north Terrain: Mostly mountains, high plateaus, deserts in west; plains, deltas, and hills in east

6 China s Provinces

7 China has longest living civilization, with written language traced back to 3000 BC Chinese history went through different dynasties people ruled by an emperor, rule being established by military conquest Each emperor succeeded by offspring, except where throne was seized in a revolution, establishing new dynasty The winner is the emperor; the loser is the bandit

8 Shang, BC: considered first dynasty engaged in large-scale production of bronze vessels; tortoise shells with traces of writing (precursor of Chinese written language),

9 Zhou, BC: longest lasting, native Chinese philosophy evolved in this period, e.g., Confucianism; debate about impact of his teachings on China s development: Positive: upholding high moral standard and honoring commitments helpful in business transactions; provide social order in which a market economy can function Negative: use of personal honor to safeguard business commitments possibly a poor substitute for legal system; focus on social order and family values results in sacrifice of individual freedom and self-interest

10 Qin, BC: unified China, marking beginning of Imperial China Qin Shihuang, first emperor, standardized written Chinese, units of measurement and coinage; also directed completion of large part of Great Wall; terracotta army protects tomb in Xian Dictatorial ruler who persecuted dissenting scholars Mao Zedong strongly influenced by Qin Shihuang

11 The Great Wall (Length: 3,945 miles)

12

13 The Terracotta Army (Qin Dynasty ~210BC): Shaanxi Province

14 The figures vary in height (6ft 6ft 5in), according to their role, the tallest being the generals. Current estimates are that in the three pits containing the Terracotta Army there were over 8,000 soldiers, 130 chariots with 520 horses and 150 cavalry horses.

15 Han, 206 BC-220 AD: during this dynasty, some part of China had functioning market economy, with farmers, workers and merchants engaged in production and trade Markets seemed to work through laws of demand and supply, as described by the Chinese historian Sima Qian: When all work willingly at their trade, just as water flows ceaselessly downhill day and night, things will appear unsought and people will produce them without being asked (Records of the Grand Historian, BC)

16 Tang, : during this dynasty, Chinese traded through the Silk Route Route from China originally started under Han dynasty, but re-opened under Tang dynasty Extending 4,000 miles, Silk Route enabled transportation of goods, and luxuries such as silk, perfumes, and spices between China, India, Asia Minor and the Mediterranean Marked beginning of economic globalization process

17 Some Chinese History

18 Song, : China had capitalist-type economy, but lacked modern technology Given their knowledge of mathematics and science, why did China not develop modern technology earlier than and independently of the West? Claimed it was lack of economic incentives large amount of inexpensive labor available for production meant no payoff to innovation (Chow, 2006)

19 Yuan, : founded by the Mongolians under Kublai Khan grandson of Ghengis Khan; assimilated and preserved Chinese culture while they ruled Territory of Mongolian Empire extended to large part of Europe - compares to other Chinese dynasties who seldom tried to conquer other territories

20 Ming, : imperial rule returned to Han Chinese Forbidden City built Ming began extensive overseas exploration; traded with Portugese, Spanish and Dutch; migration to Taiwan from Fujian province Taiwan part of China until 1895 when China was defeated by Japan who subsequently returned it at end of WWII Forms basis for claim by People s Republic of China that Taiwan always was a part of China

21 The Forbidden City, Beijing Chinese Imperial Palace, Ming to end of Qing Dynasty

22 Qing, : Manchurians took over, with early periods of prosperity, but dynasty became weak during 1800s as West advanced economically, scientifically, technologically and militarily British Empire expanding, and wanting to trade China defeated by British in Opium War of 1840; Treaty of Nanking signed 1842, ceding Hong Kong to British Roots of Chinese hostility to foreign powers

23 Republic of China 1911-: established under leadership of Sun Yat-sen and the Kuomintang (KMT) solicited support of Chinese Communist Party (CCP) in 1920s to unify China Chiang Kai-shek became leader of KMT in 1925, and nominally unified China in 1928 Sino-Japanese war began in 1937, followed by Japan s entry into WWII in 1941 After 1945, civil war by 1949, CCP controlled mainland China, and KMT retreated to Taiwan

24 In spite of political instability between 1911 and 1937, economic activities and development took place in China modern economy was evolving Tremendous difficulty in establishing democratic traditions during this period Chinese not familiar with modern democratic institutions Mao Zedong subsequently received credit for unifying China, and nationalism remains a strong force in modern China

25 World s 2 nd largest economy as of 2009 Fastest growing economy in the world over past two decades Unique and ongoing transition from a socialist economy to a market economy Major impact on globalization

26 Population: China: US: Labor force: 1.34 billion (2011 est.), 57% in rural areas. 313 million (2011 est.), 18% in rural areas China: 780 million (2010 est.) US: million* (2010 est.) * Includes unemployed Source: World Factbook (2011)

27 Rural China

28 China s Cities: Shanghai Largest city in China in terms of population and one of the largest metropolitan areas in the world, with 23 million people in located on China's central eastern coast at mouth of Yangtze River.

29 China s Cities: Nanjing Medium-sized city of 7.3 million people in 2011 located in Yangtze River delta in Jiangsu Province

30 China s Cities: Shaoguan Small city of 0.7 million people - located in northern Guangdong Province

31 Workers Apartments Jinhua a small city in Zheijiang Province

32 1) From Chinese National Accounts (2010 est.): GDP: US$ 5.7 trillion GDP per capita:us $ 4,300 2) Purchasing Power Parity* (2009 est.): GDP: US $9.9 trillion GDP per capita: US$ 7,400 For the US, GDP is US$ trillion (2010 est.), and GDP per capita is US$ 47,400 (2010 est.) Source: World Factbook (2011) * Exchange rate equating price of basket of identical goods in two countries

33 China: Agriculture: 9.6% Industry: 46.8% Services: 43.6% US: Agriculture: 1.2% Industry: 22.2% Services: 76.7% Source: World Factbook (2011)

34 Chinese Agriculture

35 Industrial China

36 China s Service Sector The Shanghai Stock Market

37 Official Exchange Rate 2010 est. (US$ trillions) Purchasing Power Parity 2010 est. (US$ trillions) Rank Country GDP Rank Country GDP 1 US US China China Japan Japan Germany India France Germany 2.96 Source: World Factbook (2011)

38 Official Exchange Rate 2010 est. (US$) Purchasing Power Parity 2009 est. (US$) Rank Country GDP/Capita Rank Country GDP/Capita 1 Qatar 150,429 1 Qatar 145, US 47, US 47, Japan 42, Germany 35, Germany 40, Japan 34, China 4, China 7,400 Source: The World Factbook (2011)

39 GDP (billion RMB) Nominal GDP Growth in China Year Source: National Bureau of Statistics, China Statistical Yearbooks

40 GDP per Capita (RMB) GDP per Capita Growth in China Year Source: National Bureau of Statistics, China Statistical Yearbooks

41 Real Annual Growth Rate % Real Annual Growth Rates in China Year Source: National Bureau of Statistics, China Statistical Yearbooks

42

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