{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

PWC - Beijing to Budapest - CHINA - China China 4 2004/2005...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
China
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
China Retail & Consumer Thought Leadership Study, 2004 Area (‘000 sq km): Area (‘000 sq km): 9,600 (US 9,600 – EMU 2,500 – World 133,700) Capital: Capital: Capital: Beijing Population (million): Population (million): 1,280 (US 288.4 – EMU 305.5 – World 6,200) GDP (USD billion): GDP (USD billion): GDP (USD billion): 1,300 (US 10,400 – EMU 6,600 – World 32,300) GNI per capita (USD): GNI per capita (USD): 960 (US 35,400 – EMU 20,320 – World 5,120) Currency: Currency: Chinese Yuan Renminbi (CNY or RMB) Languages: Standard Chinese or Mandarin, Yue (Cantonese), Wu (Shanghaiese), Minbei (Fuzhou), Minnan (Hokkien-Taiwanese), Xiang, Gan, Hakka dialects, minority languages (see Ethnic groups entry) Main religions: Main religions: Daoist (Taoist), Buddhist Government type: Government type: Communist state ECONOMIC OVERVIEW After two decades of market reform first instigated by Deng Xiaoping 20 years ago, China has become the world’s second-largest economy by purchasing power parity. Since joining the World Trade Organization (WTO) in 2001, China has been gradually liberalizing and expanding its market, creating tremendous opportunities for both domestic and foreign investors. GDP AND CPI Notwithstanding the outbreak of Severe Acute Respiratory Syndrome (SARS), China achieved real GDP growth of 9.1% in 2003. From 1992 to 2003, China’s GDP has grown at an average annual rate of 15.5%, increasing fivefold since 1992. China’s GDP evolution (1992-2003) The CPI increased by an annual average rate of 1.2% in 2003, after a marginal decrease in 2002 of 0.8%, mainly due to price rises in food, services items, housing, fuels and utilities. Official estimates put inflation for 2004 at an average of 3.2% as the government acts to cool investment levels to prevent the economy from overheating. Source: China Statistical Yearbook 2003 0 2000 4000 6000 8000 0000 2000 4000 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% Growth rate Year RMB billion 19
Image of page 2
2004/2005 Global Retail & Consumer Study from Beijing to Budapest China PricewaterhouseCoopers FOREIGN DIRECT INVESTMENT In 2003, China overtook the US as the largest recipient of foreign direct investment (FDI). FDI in 2003 amounted to USD53.5 billion, a 1.4% increase from 2002. 39% of FDI was attributed to investments from Hong Kong and Taiwan, while investments from the US, Japan and Korea amounted to 26%. A major part of the total FDI was channeled into manufacturing with a focus on labor-intensive, low-tech export manufacturing projects. With the substantial liberalization of China’s service sector by December 2004, it is expected that more FDI will go to the service sector. Regulations governing the retail and consumer sector and its relaxation In accordance with the World Trade Organisation (“WTO”) market access timetable, foreign enterprises are allowed to set up wholly foreign-owned enterprises (“WFOE”) to engage in retail and wholesale activities by 11 December 2004. Most restrictions on equity, geography, number of service suppliers will be eliminated by then.
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern