Vol. 6 Num. 1 - GCG: Revista de GlobalizaciÃ³n, Competitividad y ...

More documents

Recommendations

Info

Zhu Hongboracterized by China importing raw materials and exporting labor-intensive products. Moreinvestment in each other would be a focus for the future, and China aimed to build morefree trade areas with Latin America when the conditions were right. China would deal withtrade frictions in reasonable ways, and trade retaliation measures would be avoided in orderto maintain good economic relations 7 . President Jintao also proposed that the trade volumereach $100 billion in 2010. After only 3 years, this goal was achieved in 2007. The main reasonwhy there was such a fast development of trade was the booming Chinese economy,which has needed more and more raw materials, such as iron ore, copper, oil, gas, beans,corn, timber and so on. Latin America can provide all these raw materials to China.119However a lot of problems in China and Latin America’s economic relations emerged at thesame time. Latin America was not satisfied with the structure of the trade and wanted toexport more industrial products to China. In addition, Latin America was afraid of Chinesecompetition in both domestic as well as international markets, such as in the US market.After Brazil and Argentina accepted the market economy status of China in 2004, they beganto complain about the dumping of Chinese goods in their domestic markets. Mexicocomplained about large trade deficits with China and the smuggling of Chinese goods intoits domestic markets.2. The Financial Crisis and its effects on the Chinese economy and foreigntradeDuring the three decades after 1978, the Chinese economy grew at a two-digit rate, but in2008, with the deepening world financial crisis, the economic growth rate fell below 10%. Atthe same time, the Chinese government tried to achieve an 8% growth rate in 2009. This wasconsidered a hard and ambitious plan with the background of the financial crisis.The Chinese economy is driven mainly by investment, exports, and domestic consumption,the Troika of Chinese Economy. But during the past 5 years, this Troika has become greatlyout of balance. Investment increased from 36% to 44%, import and export volume in nationalGDP increased from 44% to 60%, and the rate of domestic consumption is down from 61%to 50.7%. With the financial crisis getting worse, Chinese exports were decreasing sharply.According to data from Chinese Customs, Chinese foreign trade volume in the first month in2009 was only $140 billion, 29% lower than in the same month in 2008.On November 11, 2008, the Chinese government presented an Economic Stimulus Planworth 4 trillion Chinese dollars, (about US$580 billion), focused mainly on infrastructure,especially the national railroad network. This will stimulate Chinese steel, cement, andelectronics industries.In October 2008, China planned to invest 2 trillion Renminbi in railroads: 30,000 kilometersof railroad would be building by 2010, and 12,000 kilometers of express passenger railroad7. Hu Jintao, President of People’s republic of China, Work together for a more friendly and fresher China-Latin American Relations, speech in BrazilCongress on November 12, 2004 Renmin Daily, November 14, 2004.GCG GEORGETOWN UNIVERSITY - UNIVERSIA ENERO-ABRIL 2012 VOL. 6 NUM. 1 ISSN: 1988-7116pp: 115-135
Building the New Silk Road across the Pacific. Economic and trade relations between Chinaand Latin America after the Financial Crisis in 2008120 would be building by 2020. China also provided subsides for consumers to buy cars, TVsets, washing machines, ice boxes, and other appliances. These measures will benefitChinese manufacturing industries and help them overcome the challenges of the smallermarket abroad.In the first two months of 2009, Chinese car sales began to grow, reaching 1.56 million. Ifthis growth continues, China will overtake the US as the number one car market. China hasalso reformed its medical and other welfare systems, providing more financial support tothese programs, especially to rural people who have less social security, medical welfare,and so on.The recent financial crisis dealt a big blow to trade between China and Latin America. Theexport volume in 2009 was $90 billion, down 17.5%, and import volume was $513 billion,down 47.1%. Imports decreased faster than exports.At the same time, the price of iron ore, oil, and other natural resource imported into Chinadecreased sharply. In January 2009, China imported $13.8 billion, decreasing more than50%. For example, China imported 32.6 million tons of iron ore, down 11.2%. Its importingprice is $81 per ton, down 37%. China imported 12.8 million tons of oil, down 8%. Theprice of import is $340.9 per ton, down 53.3%. Chinese imports from Latin America mainlyconsisted of iron ore, copper, oil, gas, beans, corn, and timber; the lower price and rate ofimport will greatly affect trade relations between China and Latin America. Furthermore,some Latin American countries, such as Argentina, began to have a trade deficit with Chinain 2008. This will give rise to more protectionism in these countries.Chinese businessmen are trying their best to look for new markets, while US, EU, andJapanese market are smaller and more difficult. The exchange rate is also not so goodfor Chinese companies, because in 2008, US and EU currencies depreciated against theChinese Renminbi. The Latin American market is considered a potential and attractivemarket for Chinese businessmen.With the stimulus plan working, the Chinese economy was recovering faster. In 2009, Chinaachieved a growth rate of 9.1% 8 , and in the first half of 2010, the growth rate was about 11.4% 9 , well above the growth aim of 8%. This is considered the bottom line by the Chinesegovernment, because if growth is below this rate, it will be very difficult to absorb the morethan five million college graduates every year, as well as the country workers who go to citiesto look for jobs. China now had about 100 million migrant workers, according to a nationalsurvey in 2006.Foreign trade was also recovering quickly. In the first half year of 2010 (from January toJune), Chinese foreign trade volume reached $1354.88 trillion, increasing by 43.1%. Exportsreached $705 trillion, increasing by 52.7%, and imports reached $649.8 trillion. The tradesurplus was $55.3 trillion, decreasing by 42.5% 10 .8. National bureau of statistics of China, http://www.stats.gov.cn/tjdt/zygg/sjxdtzgg/t20100702_402654527.htm9. National bureau of statistics of China, http://www.stats.gov.cn/10. Resources, Chinese Customs website: http://www.customs.gov.cn/publish/portalGCG GEORGETOWN UNIVERSITY - UNIVERSIA ENERO-ABRIL 2012 VOL. 6 NUM. 1 ISSN: 1988-7116pp: 115-135
Page 2 and 3:
CARTA DEL EDITOR IN CHIEFEditor in
Page 5 and 6:
StaffDe la Torre, José, Dean, Chap
Page 7 and 8:
Staff2. MULTINACIONALES, INVERSIÓN
Page 9 and 10:
SELECCIÓN PROCEDURE PROCEDIMENTOIN
Page 11 and 12:
Instrucciones para Autores y Proced
Page 14:
INDEXACIÓN INDEXING INDEXAÇÃOInd
Page 17 and 18:
Economic Relationships between Lati
Page 19 and 20:
Page 21:
Page 24 and 25:
Miguel A. MontoyaThe rest of the pa
Page 27 and 28:
International Joint Ventures among
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
36Japanese Foreign Direct Investmen
Page 37 and 38:
Japanese Foreign Direct Investment
Page 39 and 40:
Page 41 and 42:
Page 43 and 44:
Page 45 and 46:
Page 47 and 48:
Page 49 and 50:
Page 51 and 52:
Page 53 and 54:
Page 55 and 56:
561. IntroductionClusters and indus
Page 57 and 58:
Entrepreneurial Clusters in China a
Page 59 and 60:
Page 61 and 62:
Page 63 and 64:
Page 65 and 66:
Page 67 and 68: Entrepreneurial Clusters in China a
Page 91 and 92: 921. Introduction: Mexico and China
Page 93 and 94: Why isn’t Mexico on China’s Gro
Page 107 and 108: 1081. IntroductionChina and Latin A
Page 109 and 110: Promote China-Latin American Relati
Page 115 and 116: 1161. A Brief History of Economic r
Page 117: Building the New Silk Road across t
Page 121 and 122: Building the New Silk Road across t
Page 132 and 133: Zhu HongboIn fact, some Latin Ameri
Page 134 and 135: Zhu Hongbo5. Conclusions135China an
Page 136 and 137: 1. Introduction137China’s emergen
Page 138 and 139: Edy WongTable One: Compositions of
Page 140 and 141: Edy WongTable 2: China’s R & D Ex
Page 142 and 143: Edy Wongon ‘new economic geograph
Page 144 and 145: Edy WongIn today’s global market,
Page 146 and 147: Edy Wongdemand-side factors in the
Page 148 and 149: Edy Wongterms of quality, reliabili
Page 150 and 151: Edy Wongindustry. Second, value cha
Page 152 and 153: Edy Wongconsumption of Western luxu
Page 154: Edy WongReferences155Child, J.; Rod
show all

Vol. 6 Num. 1 - GCG: Revista de GlobalizaciÃ³n, Competitividad y ...

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?