CHINA ADHERE TO INTERNATIONAL STANDARDS OR YIELD TO THE NEW CULTURAL REVOLUTION OF SHANZHAI
1. Throughout much of the 1990s, China trailed only to the US as the world's largest recipient of FDI, even briefly surpassing it in 2002 during which its capital inflows were up to $50 billion. Now China ranks third with capital inflows of $60.6 billion behind only to the UK (78.3 billion) and US (96.8
1. Policies and reforms -Special Economic Zones (SEZs)
- Economic development-focused policies
- Putting old politics behind
Special tax incentives for foreign investments in the SEZs
Greater independence on international trade activities
Products are primarily export-oriented
Attracting and utilizing foreign capital
in 1960s.
- From 1980s, China began to set EP zones along the costal cities.
- From May, 2000, 57 EP zones had been built.
Functions:
1> Attract a great quantity of foreign investment, help improve the technology, product quality.
2> Export expansion, increase exchange revenue.
3> Increase employment opportunities.
4> Improve the production technology and management.
․Global Steel Industry
In 2004, Rapid demand growth in China (80% of the total increase ) caused new problems which are raw material shortage and bigger demand fluctuations. World demand for steel : will increase by 3.4%/year ('04'10) particularly in Asia.
․Mega Trends in Steel Industry
Consolida
Ⅱ. Effects of RMB appreciation on China
□ Exchange rate system of China
- The Chinese exchange rate system is the fixed exchange rate system which is fixed to the dollar. In 1994 January 1, China unified the official exchange rate and the market exchange rate and adopted a managed floating exchange rate system that restricted one day exchange rate fluctuation band with ±0.3% of the precedi