Please enable JavaScript.

Coggle requires JavaScript to display documents.

(BS, OM, SR) China (Growth of Chinese trade (How has technology and…

- - - - Competitiveness - China's attractiveness as a destination for investment capital rests on its development of infrastructure, resource availability (physical and labor), productivity and workforce skills, and the development of the business value chain. This gives no chance to countries such as inda.
      - Stability - Political and economic stability can facilitate an influx of FDI. Stability represents predictability and the opportunity for enterprises to gain better foresight into the future. Alternatively, constant social unrest, rioting, rebellions and social turmoil are settings not conducive to business.
      - Capital Availability - FDI is comprised of capital that an outside investor is willing to place (and risk) within a local region. Conditions in the global capital markets and general economic environment play a role in determining the flow of FDI into China.
      - Local Chinese markets and business climate - The most glaring aspect of China is the sheer size of its population and market, and the prospects for growth that result from this size. The ability of enterprises - backed by foreign capital - to sell to a sizeable local market makes China an attractive destination for FDI.
  - - - The global use of technology, including the internet, has undoubtedly risen in the last few decades, following innovative ideas which play an essential role in the modernisation of the world, in particular for developing countries such as China.
      - In 2013, Chinese internet users approached 600 million, with expectations for e-commerce alone reaching up to $265 billion19. There exists even more potentials for both businesses and consumers, but a difficulty that agents face is the media censorship in China.
    - - Major infrastructure routes were laid down over a hundred years ago for reasons that were plausibly exogenous to economic factors in regions near these routes. In the late 19th and early 20th century, the Chinese government and a set of Colonial powers built railroads connecting the historical cities of China to each other and to the newly constructed Treaty Ports.
  - - - eal annual gross domestic product (GDP) growth averaging nearly 10% through 2016
  - - - High-end equipment manufacturing
      - new generations of IT technology
      - energy saving and environmental protection
      - New energy, new materials, new energy vehicles
- - - - GDP $11.22 trillion (2016 est.)
        
        GDP - composition, by sector of origin:
        agriculture: 8.6%
        industry: 39.8%
        services: 51.6%
    - - Exports - commodities:
        electrical and other machinery, including data processing equipment, apparel, furniture, textiles, integrated circuits
    - - Imports - commodities:
        electrical and other machinery, oil and mineral fuels; nuclear reactor, boiler, and machinery components; optical and medical equipment, metal ores, motor vehicles; soybeans
- - - - Only 8 African countries not receiving Chinese investment
        
        The investment to Africa over the period 1998 – 2012 includes about 2000 Chinese firms investing in 49 African countries
  - - - China wants access to natural resources, particularly oil and gas
      - China wants acces to huge markets for their own exports in Africa
      - China wants political legitemacy as they believe strengthening these relations will give them more global influence
  - - - Trade with the continent is famously booming - up to $40bn in 2004, a tenfold increase in under a decade
        
        Workers are learning new skills because of the availability of Chinese-funded work
        
        Workers are learning new skills because of the availability of Chinese-funded work
        
        Per capita growth rate of the average African economy surged from 0.6% per annum in the 1990s to 2.8% in the 2000s
        
        Chinese investors put money into the continent and provide jobs allowing local people to be educated and develop skills necessary for working
  - - - Wages remain low for local African workers
      - Poor labour conditions, unsustainable environmental practices, and job displacement
  - - - Adequate infrastructure in Africa through China’s financial resources will improve investment climate and welfare in the continent
      - Massive increase of Chinese FDI into the continent to produce goods and services has lead to closure of domestic competing firms
      - Some Chinese firms exploit Africa by not giving jobs to local people and instead shipping over their own workers and those locals who do get jobs are not paid well
        
        Many Chinese firms avoid and evade taxes
        
        China negotiates unfair deals that take advantage of African governments' relative weaknesses and that foster corruption