china and the cambodian economy
TRANSCRIPT
China and the Cambodian EconomyBy Dr. Antonio Graceffo, PhD, China MBA ( 安东尼 )Shanghai UniversityContact: [email protected]: https://www.linkedin.com/in/antoniograceffo
Antonio Graceffo ( 安东尼 )
Why study the Chinese economy?
Antonio Graceffo ( 安东尼 )
China is the world’s second largest economy.
1 United States 179682 China 113853 Japan 41164 Germany 33715 United Kingdom 28656 France 24237 India 21838 Italy 18199 Brazil 180010 Canada 1573
GDP by country
Antonio Graceffo ( 安东尼 )
Why is the China Economy important for Cambodia?
Antonio Graceffo ( 安东尼 )
China accounts for 23.97% of foreign direct investment (FDI), followed by Korea at 10.68%, and then Malaysia, Taiwan, Hong Kong, and Thailand (CDC 2016).
"Chinese companies have invested in 543 projects with the total amount of US$ 10,1 billion from 1994 to 2015" (Sophavy 2015).
Antonio Graceffo ( 安东尼 )
China is:One of Cambodia’s largest import partners. AndA large source of Cambodia foreign direct investment (FDI)
Antonio Graceffo ( 安东尼 )
The construction sectorReal estateGarment industryRaw materials
Understanding the Chinese economy
Antonio Graceffo ( 安东尼 )
Mao Zedong
Mao era 1949-1976
The People’s Republic of China (PRC)
What kind of economy did or does the PRC have?
Command economy or planned economy
Antonio Graceffo ( 安东尼 )
CommunismSocialismMarxismLeninism
What kind of economy do countries like Cambodia and USA have?
Cambodia and the US have a market economy or free market economy, also called a market driven economy.
Antonio Graceffo ( 安东尼 )
Planned economy
Antonio Graceffo ( 安东尼 )
Little or no private ownership of propertyVery few private companiesThe government owns all factors of productionState owned enterprises (SOE) dominate
Under the completely planned economy, China was one of the poorest countries in the world. In 1974, the per capita GDP of $158 Dollars per year.
Market economy
Antonio Graceffo ( 安东尼 )
The market determines:The price of goodsThe price of raw materials Allocation of natural resourcesAvailability of credit
Most companies are private and citizens are free to choose where they want to work or what business they wish to do.
Economic Reform
Antonio Graceffo ( 安东尼 )
Deng Xiaoping
The Deng era(1978-1989)
Socialism with Chinese characteristics
Antonio Graceffo ( 安东尼 )
Reform era (1978- Present)
Private propertyPrivately owned enterprises (POE)Market driven prices More freedom for citizens to choose their job or businessStock MarketConvertible currency
Convertible Currency
Antonio Graceffo ( 安东尼 )
The Chinese currency YuanRenminbi (RMB)Chinese New Yuan (CNY)
RMB as SDR
Antonio Graceffo ( 安东尼 )
In 2015, the International Monetary Fund (IMF) agreed to include the RMB, alongside the US Dollar, Euro, Japanese Yen, and Great Briton Pound as a special drawing rights currency (SDR).
Not a 100% free market economy
Antonio Graceffo ( 安东尼 )
Socialism with Chinese characteristics
Although China’s economy is more market oriented, the government still controls much of:Allocation of resourcesAvailability of creditThe conversion of the RMBStock Market fluctuationsCapital flight
"The 150,000 SOEs account for 17 percent of urban employment, 22 percent of industrial income, and 38 percent of China’s industrial assets, according to JPMorgan Chase" (Curran 2015).
Going out policy (1999)
Antonio Graceffo ( 安东尼 )
Since the late 1990’s Chinese companies have been encouraged to go abroad and invest in minerals, new technology, energy, natural resources, and food. Chinese companies also list on foreign stock exchanges to obtain foreign capital investment.
Going out policy 2007-Present
Antonio Graceffo ( 安东尼 )
In the last few years Chinese GDP growth has slowed down. Unemployment among young college graduates is growing as is China’s debt.
New focuses of going out include Job creationObtaining new markets for Chinese products
Cambodia and China
Antonio Graceffo ( 安东尼 )
With the exception of 2009, the Cambodian GDP has grown by 6% or more every year for the last ten years (Trading.com)
Why do you think China wants to invest in Cambodia?
Dr. Antonio Graceffo, PhD, China MBA ( 安东尼 )Shanghai UniversityContact: [email protected]: https://www.linkedin.com/in/antoniograceffo
Antonio Graceffo ( 安东尼 )