Industrial And Innovation Policy Of China

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Industrial And Innovation Policy Of China
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Profile of China
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Overview(1)

• 1966 the eruption of Culture Revolution(the most
  severe setback and biggest loss since the
  founding of China)
• 1978 the central government made the strategy
  decision shifting the focus of work to socialist
  modernization and define the guiding policy and
  opening up to the outside world

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Overview(2)

• 1992 the goal setting to establish the system of
  socialist market economy(a major step was made in
  the reform of the pricing system, public
  finance,taxation,banking,foreign trade and
  foreign exchange and notable results were
  achieved)
• 1996 Chinas economy realized soft land

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Overview(3)Chinas GDP in 1997
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Key Economic Ratios(2002)

• GDP(USbillion) 1,232.7
• Exports of goods and services/GDP 29.5
• Gross domestic savings/GDP 44.0
• Gross national savings/GDP 43.8
• Current account balance/GDP 2.9
• Interest payment/GDP 0.5
• Total debt/GDP 12.6
• Total debt service/exports 6.1

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Structure of the Economy2002( of GDP)

• Agriculture 14.5
• Industry 51.4
• Manufacturing 44.5
• Services 33.7

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Structure of the Economy2002( of GDP)

• Private Consumption 42.5
• General Government Consumption 13.5
• Imports of Goods and Services 26.5

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Economic Zones

• Special Economic Zones(SEZ)
• Economic and Technological Development Zones

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Special Economic Zones

• Special Economic Zones (SEZ)Shenzhen,
  established in 1980Zhuhai, Shantou
  XiamenHainan Island
• Special tax status
• favorable investment climate for foreign
  investors

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SEZ continued

• low wage, cheap land and convenient geographic
  location (water and air transportation)
• export tax waived
• import duties and other taxes waived
• after-tax profits to be repatriated without
  penalty
• decentralization of authority (red-tape reduced)

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Economic and Technological Development Zones

• 14 coastal cities
• more skilled and better educated work-force
• better communications
• better industrial infrastructure
• a tradition of commerce

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National distribution of science parks

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ZHONG GUANCUN SCIENCE PARK,BEIJING

• LOCATED IN THE NORTHWEST PART OF BEIJING
• CENTER AREA 80 km2
• DEVELOPMENT AREA300 km2

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Highly Concentrated Human resourses

• 39 leading universities and 213 research
  institutes
• 400,000 on-campus students100,000 graduates
  each year
• 11,000 high-tech companies1,500 foreign funded

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Regulations on Zhong Guancun Science Park

• Protecting the legitimate interests of the
  investors and the enterprises
• Protecting IPR
• Protecting the fair competition among the
  enterprises under market conditions.

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INTERNATIONAL TRADE

• Merchandise exports US325.6bn, and imports
  US295.2bn, surplus US30.4bn.

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WTO Membership

• A huge potential market with 1,3 billion people
• A better trade environment and fair
• disputy settlement mechanism
• Challenge and chance to Chinese enterprises

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The Problems in the Development

• Unemployment
• Enlargement of the gap between the rich and the
  poor
• Corruption
• Entironment and energy
• Large population
• Lag of system reform

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Perspective of Chinas Economy

• Improvement of the quality of labor
• Institutional adaptation
• The opening to the world(the entrance of WTO)
• 2008 Olympic Games
• 2010 World Exposition

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Welcome to Beijing in 2008!!

• The End
• XINXIN TAN
• ZHONG XIAO