Different Ways of Thinking

China raises garment, textile export tax rebate rate to 15%

China will increase the tax rebate rate for textile and garment exports from 14 percent to 15 percent, an executive meeting of the State Council (Cabinet) announced Wednesday.

The move would reduce exporters' costs and support the textile industry, the Council said. The effective date of the new rate wasn't specified.

In a national plan to invigorate China's textile industry adopted by the State Council Wednesday, the government would allocate funds for companies that produce textiles or fibers, or operate in the textile printing and dyeing sector, to upgrade technology and develop domestic brands.

Government departments were told to provide financial support and insurance services to small and medium-sized textile plants.

The government would also announce steps intended to phase out obsolete capacity, eliminate energy-intensive, polluting equipment and technology, and encourage textile and garment makers to relocate from southeastern parts of China to central and western areas.

According to the plan, the government will take a proactive attitude to enlarge domestic consumption, innovate new production, expand rural markets and promote the use of textile products in relevant industries, while expanding export destinations to stabilize the share in the international market.

The textile sector is the country's traditional pillar industry and enjoys an advantage in international competition.

However, the textile industry suffered severe difficulties since last year.

Figures from the country's customs showed textile and garment export of China was 185.17 billion U.S. dollars in 2008, up 8.2 percent year-on- year, but the growth rate was 10.7 percentage points lower than in 2007.

Experts from the Commerce Ministry (MOC) attributed the downturn to appreciation the yuan, industry liquidity shortage and production material costs surge.

China has raised the export tax rebate rate for textiles three times since last August. The previous increase in November took the rate from 13 percent to 14 percent.

The work meeting also discussed measures to support the machinery manufacturing industry as the government highlighted the importance of innovation.

Enterprises are encouraged to raise competitiveness through strengthening technological innovation. Mergers and acquisition between backbone enterprises were also encouraged.

China hopes to research and develop strategic projects in machinery for high speed railways, natural gas transfer, mining, steel and iron production, the automobile and textile industries.

This plan was seen as the country's latest move toward bolstering its economy. In early November, China announced a 4 trillion yuan (586 billion U.S. dollars) stimulus package to boost domestic demand in both infrastructure investment and consumption.

China's economic growth slowed to 6.8 percent in the fourth quarter of 2008, dragging down the annual rate to a seven-year low of 9 percent, as the global financial crisis takes a toll on the national economy.

Source: Xinhua
http://english.people.com.cn/90001/90776/90884/6585967.html

China's import prices tumble in December 2008

The General Administration of Customs of the PRC issued a report on February 5, saying that China's import and export price indexes both continued to decline in December 2008. This was the fourth month in a row that saw a slump in the import price index. Growth in export prices fell slightly.

The price of China's imports in December was 11.9 percentage points lower than it was in November, experiencing negative growth for the first time since May 2006. China's import value in December shrank by 21.3 percent, but with a 10 percent fall in import prices, actual imports fell by 12.5 percent.

Among the import figures, the price of primary goods imports slumped by 26.4 percent, 26.5 percentage points lower than it was in November. The price of industrial goods imports dipped by 3.7 percent, 9.6 percentage points lower than the November figure. The import prices for consumer goods, intermediate goods and capital goods declined by 0.8 percent, 10.1 percent and 12.8 percent, respectively.

The price of exports rose by 5.1 percent year-on-year, 0.4 percentage points lower than it was in November, and its lowest rate in 2008. China's export value in December shrank by 2.8 percent, but with the 5.1 percent rise in export prices, actual exports fell by 7.5 percent.

The price of primary goods exports surged by 13.4 percent, 9 percentage points lower than the figure for November. The export price of industrial goods climbed by 5.3 percent, 0.3 percentage points lower than November. The export prices for consumer goods and intermediate goods spiked by 11.4 percent and 7.9 percent respectively, while the export price for capital goods slipped by 6.3 percent.

By People's Daily Online
http://english.people.com.cn/90001/90776/90884/6590565.html

Growing China

Has China progressed? Although thirty years ago China was among the world’s poorest countries and has become the world’s third largest economy, has it actually made progress per capita, has the standard of living improved? Or has it produced an illusion of a large economy, while the truth is that it is a low-income country with a massive population. It is difficult to track China’s economic advancements due to its tampering of its numbers and lack of statistics. China has refused to contribute in a study on the purchasing power parity between countries twice in 1985 and 1993 making it difficult to evaluate the level of poverty in China. Though some studies estimate China’s development. Through 1980, the year Nike began manufacturing in China starting a phenomenon, to 2000, the year China overtook Mexico in exports of apparel to America, China’s real income per capita has raise 400%. The Chinese average income is now above the world’s average. The number of Chinese living in poverty dropped form 376 million to 222 million throughout the ninety’s. Child labor, workers of 10-14 years of age, has dropped from 30% to 8%. Though these are estimates, scientific research can vouch for their positivity. Life expectancy, height, and other medical info show that the standard of living has improved. The daily intake of food has increased 82%, rising from 1,636 to 3,044 calories. Despite all this growth, China has the world’s largest income inequality by region, and it has risen. Guangdong China’s richest province and Guizhou China’s poorest, average incomes differ 4.8 RMB, while America differs $1.9. China has shown great strides not only on a national economic level, but has boomed on a household level as well. Globalization has only propelled China.

Lechner, Frank J., and John Boli, eds. The Globalization Reader. 3rd ed. Malden, MA: Blackwell, 2008.

Race to Recovery

As the nations of the world attempt to climb there way out of the global recession, China remains confident that it will pull through these dark economic times first. Barack Obama talks much about plans to help the economy. Besides stimulus packages, Obama will make use of the other side of fiscal policy. Whether it is, infrastructure, communications, or a green revolution, China will be benefited. For fourteen years China's leading commodity of exports have been mechanical and electrical, totaling at about 60% of exports. Moreover, 60% of these goods make there way to the US, EU, and Japan. With China producing a large amount of the goods, the US needs to complete such an economic booster.

Zuo Xiaolei, chief economist for Galaxy Securities, listed three reasons why China will pull out of this situation first. One, China has built its self up on what he calls a "real economy", meaning China produces actual products, manufacturing goods for the world. Compared with Americas "virtual economy", though he does not go in to the meaning of this I imagine that he is referring to our stock market driven economy. Secondly, China remains to have the fastest growing aggregate demand despite the fact that it has been halved recently from 13% to 6.8%. Additionally, the Chinese are savers, saving at a rate of almost 40%, making it possible for them to invest in the private sector of the economy. Last is China's pseudo- capitalist economy. Because china still has communistic practices, China can nullify some of the capitalist whiplash the rest of the world is feeling. The vast majority of China's banks are owned by the state. 30% of China's mechanical and electric product suppliers are state owned as well.

http://english.people.com.cn/90001/90778/90857/90862/6585728.html
http://english.people.com.cn/90001/90776/90884/6585565.html

Year of the Ox: 牛年

The year of the Ox is looking good according to Chinese astrologists. "The Ox is known for strength, stability and hard work," making it a great symbol for these rough economic times. In a western since the Ox is much like a bull, our symbol for good economic times; good thing the bear is not part of the Chinese zodiac. In addition some believe because President Barack Obama was born under the year of the Ox this will prove to be a good year for him. "The Chinese horoscope says Ox people are born to lead. They are self-assured, hard working and speak clearly and concisely when it matters most. "

http://wcco.com/local/chinese.new.year.2.918422.html

Made In China

Going through my closet today I decided to record where each article of clothing was from. To no ones surprise China won hands down. China produces 21.34% of my apparel, including: 23% of my T-shirts, and 34% of my dress shirts. China was followed by Honduras and Mexico, who produced 9.55% and 8.42% respectfully. 32 countries were represented in my closet. From my closet expedition I found that China Produces the most all around. Honduras mostly makes T-shirts, Bangladesh exports mostly pants and shorts, while Mexico creates the most jeans.

麦当劳－MaiDangLao: McDonalds

The Rise of The Rest

The Rise Of The Rest

It's true China is booming, Russia is growing more assertive, terrorism is a threat. But if America is losing the ability to dictate to this new world, it has not lost the ability to lead.

The Case Against The West

The West is not welcoming Asia's progress, and its short-term interests in preserving its privileged position in various global institutions are trumping its long-term interests in creating a more just and stable world order. The West has gone from being the world's problem solver to being its single biggest liability.

What Have We Learned, If Anything?

The twentieth century is hardly behind us but already its quarrels and its achievements, its ideals and its fears are slipping into the obscurity of mis-memory. In the West we have made haste to dispense whenever possible with the economic, intellectual, and institutional baggage of the twentieth century and encouraged others to do likewise.

__________________________________________________________________

These three articles all predict a future where China is the new super-power, or at least the economic center. This seem to almost be a fact through out the three papers. Through my research I plan on discovering how China has got to the point where it is the worlds prodigy child. Then look further to make a more detailed report on the bright future of this upcoming star. Mahbubani says China is capable of more international responsibility and quotes the Secretary of State in calling China the "'responsible stakeholder' in the international system." Zakaria points out that China has an abundance of potential in its man-power, resources, capital, and businesses.

This reminds me of a Chinese proverb: 大器晚成(da qi wan cheng) literally it means it takes a lot of time to make one pot. Figuratively it means a great talent matures slowly, or the English equivalent of "Rome was not built in a day."

ICBC offers China´s 1st annexation loan

WATCH VIDEO

Source: CCTV.com | 01-07-2009 09:00

Special Report: Global Financial Crisis

Click for more news in China Today>>

The Industrial and Commercial Bank of China has offered the country's first annexation loan to a domestic company. The Beijing Shouchuang Limited Company will receive more than five billion yuan from the bank for an acquisition project.

The Industrial and Commercial Bank of China has offered the country's first annexation loan to a domestic company.

The deal was signed on Tuesday in Beijing. Annexation loans differ from ordinary loans because receivers are requested to pay back the loans with shares or dividend.

China had banned commercial banks from providing annexation loans because of the high risks. Last month, the country lifted the ban, encouraging banks to offer annexation loans to help domestic enterprises survive the global financial crisis.

http://www.cctv.com/english/20090107/101971.shtml

Economy Overview

China's economy during the last quarter century has changed from a centrally planned system that was largely closed to international trade to a more market-oriented economy that has a rapidly growing private sector and is a major player in the global economy. Reforms started in the late 1970s with the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, the foundation of a diversified banking system, the development of stock markets, the rapid growth of the non-state sector, and the opening to foreign trade and investment. China has generally implemented reforms in a gradualist or piecemeal fashion, including the sale of minority shares in four of China's largest state banks to foreign investors and refinements in foreign exchange and bond markets in 2005. After keeping its currency tightly linked to the US dollar for years, China in July 2005 revalued its currency by 2.1% against the US dollar and moved to an exchange rate system that references a basket of currencies. Cumulative appreciation of the renminbi against the US dollar since the end of the dollar peg reached 15% in January 2008. The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978. Measured on a purchasing power parity (PPP) basis, China in 2007 stood as the second-largest economy in the world after the US, although in per capita terms the country is still lower middle-income. Annual inflows of foreign direct investment in 2007 rose to $75 billion. By the end of 2007, more than 5,000 domestic Chinese enterprises had established direct investments in 172 countries and regions around the world. The Chinese government faces several economic development challenges: (a) to sustain adequate job growth for tens of millions of workers laid off from state-owned enterprises, migrants, and new entrants to the work force; (b) to reduce corruption and other economic crimes; and (c) to contain environmental damage and social strife related to the economy's rapid transformation. Economic development has been more rapid in coastal provinces than in the interior, and approximately 200 million rural laborers have relocated to urban areas to find work. One demographic consequence of the "one child" policy is that China is now one of the most rapidly aging countries in the world. Deterioration in the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially in the north - is another long-term problem. China continues to lose arable land because of erosion and economic development. In 2007 China intensified government efforts to improve environmental conditions, tying the evaluation of local officials to environmental targets, publishing a national climate change policy, and establishing a high level leading group on climate change, headed by Premier WEN Jiabao. The Chinese government seeks to add energy production capacity from sources other than coal and oil as its double-digit economic growth increases demand. Chinese energy officials in 2007 agreed to purchase five third generation nuclear reactors from Western companies. More power generating capacity came on line in 2006 as large scale investments - including the Three Gorges Dam across the Yangtze River - were completed.

https://www.cia.gov/library/publications/the-world-factbook/print/ch.html