英语论文-中国在世界经济中的优势与劣势

对外经济贸易大学远程教育毕业论文
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毕业论文/设计
题目：中国在世界经济中的优势与劣势
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专业商务英语论文成绩
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University of International Business and Economics Graduation Thesis / Design Title:China’s Strengths and
Weaknesses in the World Economy
Department / School Distance Education
Specialty（choose one）Business English
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Thesis Advisor
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Date
Index Abstract (6)
Chapter 1 Introduction and Overview (7)
Chapter 2 China’s Strengths in the World Economy (8)
2.1 Economy-oriented Policy (8)
2.2 Huge Market (10)
2.3 Low Cost and High Quality of Human Resource (11)
Chapt er 3 China’s Weaknesses in the World Economy (13)
3.1 Absence of Credit Legal and Judicial System (13)
3.2 Inefficiency in State Owned Enterprises and Financial System (13)
3.3 Inadequate Infrastructure (15)
3.4 U nemployment and Income Disparity (16)
3.5 Pollution (17)
Conclusion (18)
Reference (19)
ABSTRACT
China has drawn much attention in recent years as our economy has performed exceptionally well. However, China is still a developing country with explicit and potential defects in economy system. The strengths of China are reflected by its 1) economy-oriented policy, t he government’s focus on the improv ement of economy, and the effort to improve the investment environment; 2) the largest population and the huge market demand in the world and long period of fast growing market demand;
3) low cost and high quality of human resource. The weaknesses are its absence of credit legal system, inefficiency in state owned enterprises and financial system, inadequate infrastructure, unemployment and income disparity and pollution. Therefore, it’s important for Chinese government to maintain the fast economic growth, to make good use of our unique advantages, and to take measures to solve the present problems and overcome the obstacles.
Key words: Chinese economy；strengths；weaknesses
Chapter 1 Introduction and Overview China has drawn much attention in recent years as our economy has performed exceptionally well by most standards: after a soft landing from an episode of overheating in the mid-1990s, the Chinese economy managed to fight against the Asian crisis of the late 1990s largely unscathed and has been able to sustain rapid growth in the recent global downturn. At the same time, however, China is still a developing country with explicit and potential defects in economy system, such as problems in the state-owned enterprises (SOEs) and banks, growing unemployment and income disparities, and underdeveloped infrastructure. These challenges, if unmet, could undermine sustained rapid growth and stability. So it is necessary to do a rational analysis on our economy strengths and weaknesses instead of being blindly optimistic about our GDP growth. The detailed analysis will be given in the following chapters.
Chapter 2 China’s Strengths in the World Economy
China has a reputation for its richness in natural resources, huge population, abundance of knowledge pool and the aspiration to gain economic growth, all of which decide the following advantages in world economy.
2.1 Economy-oriented Policy
“To put the most emphasis on economic development”has been the main principal of Chinese government’s guidelines for several decades of years since reforming and opening up policy was implemented. The government makes out all-around favorable economy-oriented policies to accelerate China’s growth.
2.1.1 The G overnment’s Focus on the Improvement of Economy
The government spares no effort promoting China’s economy. The economy-centered and reform and opening up policy was written into the constitution as the superlative guidelines. Fifteen years of hard negotiation time was paid to strive for the right to enter into WTO, which brings China more opportunities and equal market status in the world.
2.1.2 The Government’s Effort to Make the Investment Environment Better
Investment environment is the outcome of several factors, which can be classified into three main categories: macro economy and trade policy, infrastructure and economy management structure and system.
In the area of macro economy, China has done really good job. The stability on macro economy and politics stimulates investment home and abroad. China’s national economy has maintained high speed increase with the average of 7% -8% during the past scores of years, which ranked top in the world. A part of developed areas have reached the level of mid-developed country. To propel the economic growth, Chinese government has taken positive fiscal measures such as to stabilize foreign exchange rate, to lower interest rate, with the amount of over 8000 billion Yuan of residential deposits. A series of tax favorable policies have also been applied to foreign investment enterprises, for example, all foreign investment enterprises have the privilege of 2 tax-free years and 3 half-tax years since the lucrative year as in term of
corporation income tax. Even more favorable tax policies are offered to the foreign investment enterprises which invest in the area and industry encouraged by the government.
In the area of industry and trade polices, Chinese government also plays an active role to encourage international trades. Industry policies become important measures to adjust and control foreign investment. According to national economy and industry development strategy, Chinese government released the newly emended “Foreign Investment Industry Instructional C atalogue”, to encourage foreign investment to go to targeted industries, such as agriculture, resource exploitation, infrastructure construction, export and hi-tech industries. In the mean time, some infant industries and those industries which influence the national economy and the people's livelihood are restrictive to foreign investment. Remarkable work had been done to reduce the tariff tax and to remove the non-tariff barriers. International trades are highly encouraged by the government. Tax rebates and other measures have been taken to boost export. Table 1 shows the statistic of the amount of exports and imports in 2003 and 2004 (Jan-Jul), which reveals the rising trend of foreign trade.
Table 1: amount of exports and imports①
In the area of infrastructure, five cities in China have much better performance than many of cities and areas in other developing countries. They are Beijing, Shanghai, Guangzhou, Chengdu and Tianjin. Here are some specific cases given by an investigation team: the average sales losses caused by electricity power cut-off in these five cities are 2%, which is 8% in Pakistan; the time spend on imported cargo collection through the is 8 days, which is similar with South Korea and Thailand. To make a comparison, it is 11days and 18days in India
①Wanda Tseng and Markus Rodlauer, “China Competing in the Global Economy,” International Banker, V ol. 14, No. 2, 2003, pp 25。

and Pakistan. However, the five cities can not represent the infrastructure level of the entire China. ②The infrastructure is still a problem to be solved in wider part of China.
Besides, the economy management system and structure is also a weak field, which will be discussed in the following chapters.
2.2 Huge Market
Compared with other countries, the most special advantage of China is its unique market character for its largest population in the world and the potential huge market demand.
2.2.1 The Largest Population and the Huge Market Demand in the World
In the big countries which have realized industrialization, such as Britain, France, Germany and Italy, their population is less than 100million, equal with that of several big provinces in China. The population of the US and Japan is 200million and 100million, while the number is 1.3billion in China, taking up 20% of the population in the world. The emphasis here is not the population itself, but the entrance into the mid-period of industrialization and the rapid increase of important industries and service products of such a large population. It is an unprecedented economic phenomenon in human history, so special economic characters not owned by other countries are quite likely to emerge. At present, there is a great income gap between urban and rural residents. And urban population only accounts for 400million. If only take urban population into consideration, one product can be in the top list in quantity even if it has not a very high popularizing rate. The latest example is that the quantities of mobile phones in use in China have surpassed that of the US, ranking the first in the world. The following table shows the statistics of Chinese mobile market (Jul, 2004)
The other example is Chinese auto market, on which 4.4million autos were sold in 2003. China has become the 4th auto market in the world.③
②Petersen N.C, “Reforming China's Trading System”, Trade and Democracy, V ol. 9.No.9, 200, pp38。

③Will Martin, “China's Economic Policies and World Trade,” Economic Reform Today, V ol. 23, No.11, pp86。

Table 2 Chinese Mobile Market
The huge population brings huge market demand, and also introduces in some important characters. For instance, scale economy and scope economy can be fully realized depending on domestic market only. In other words, costs can be reduced without the troubles of exploiting overseas market. A number of big enterprises that build up sound industrial competition system can be accommodated by the huge market.
Uneven development of the huge population makes some certain industries maintaining longer period of fast increase than other countries.
2.2.2 Long Period of Fast Growing Market Demand
For the moment, GDP per capita is about 1000 dollar. The estimated urban population still accounts for 50% at least when the migrant population between urban and rural areas is eliminated. The citification rate is 36%,④much lower than industrialization rate. The situation indicates that China is still on the middle level of industrialization with high potential of fast growth. In the following 10 to 20 years, the swift transformation and upgrade of consuming structure and industry structure, the migration of rural population to non-agricultural cities, and the accelerated pace of citification will drive the market demand.
2.3 Low Cost and High Quality of Human Resource
The salary of Chinese employers is much lower than that of western countries. The average salary of a worker is about 60-200 euro per month depending on different areas. For example, the average salary of an IT engineer is about 300-500 euro per
④Albert Keidel, “China's Economy a Mixed Performance”, China Business, V ol. 27, No.3, 2001, pp90。

month.⑤Therefore, on the one hand, the abundant low-cost labor force provides big opportunities for labor-intensive foreign investors. In fact, more than half of foreign investment focuses on labor-intensive industries. On the other hand, quantities of well-educated and well-trained skilled labor force can meet the demands of hi-tech foreign investors.
Furthermore, the number of graduate students in universities is over 500 thousand per year. It means that the education and ability level of the whole labor force is rising. English language is taught as the basic requirement in schools and other service industries. Foreigners who know little Chinese will not feel frustrated everywhere in China, because even the taxi drivers and peddlers know some basic English. The number of PhD students reaches 120 thousand, ranking the third in the world, only next to the US and Germany.
⑤Earl Drake, “China's Future and Prospects" China's Macroeconomic Outlook, V ol. 127, No.7, 2002, pp 51。

Chapter 3 China’s Weaknesses in the World Economy
3.1 Absence of Credit Legal and Judicial System
The transition from a centrally planned economy to a more open and market-oriented system has been accompanied by rising governance problems and corruption. Sustained success in improving governance and fighting corruption will require a broader effort to build the legal and judicial framework for a market economy, along with increased transparency and responsibility of government.
A new push is needed to complete the unfinished reform agenda since China’s entry into the WTO. The most urgent is to establish and implement wholesome laws on intellectual property protection.
3.2 Inefficiency in State Owned Enterprises and Financial System
State enterprise reform has been a tough task for Chinese government and enterprises. For one thing, our socialist ideology has been one reason for the delay of the reform. For another is that China's more than 300,000 state enterprises provide jobs and a wide range of social welfare benefits to approximately 120 million workers. Closing unprofitable factories would bring significant hardship and severe social dislocation to China's labor force which is already experiencing rising unemployment rates.
The 1990s saw growing evidence of the costs of unreformed SOEs. Despite greater autonomy and decentralization of management decisions, SOE performance has suffered from deeper problems rooted in the lack of tight budget constraints, weak management, and the requirement to provide job security and a range of social services. Growing competition, lower subsidies, and tighter credit (especially for smaller enterprises) revealed the poor performance of many SOEs in the 1990s. Seeing this, China's leaders have developed a plan to reform approximately 1,000 larger state-owned firms while giving up control over the rest. Formally announced by President Jiang Zemin at the 15th National Congress of the Chinese Communist
Party,⑥this strategy will likely be at the expense of bankruptcies, mergers and acquisitions, and also causing ownership diversification process known as corporatization. Reducing government control over thousands of enterprises in China will create a more open and modern trading system. This in turn will help to develop a more competitive economy, support infant capital markets and speed up China's integration into the global economy.
The most fragile sector in China is its financial sector. The four huge state banks -- accounting for 90 percent of banking assets and nearly 70 percent of financial assets -- and the smaller banks, are badly managed and subject to political decisions. In particular, bank lending to bankrupt or failing state industries is determined by political fiat, and lending at local levels is often conditioned by pressures from party bureaucrats. China's financial system—owned by the state and governed more by politics than by market forces—is unequipped to meet the capital requirements of a modern and growing market economy to which China aspires. In revamping the ownership structure of state-owned firms, a flexible and market-driven financial system will be needed to ensure that capital resources are channeled towards efficient and creditworthy end-users.
There is a surprising case, which is private enterprises, the most vigorous parts of the economy, have generated 130% productivity than state-owned enterprises. In other words, using the same capital, labor and resources, the production created by private enterprises is 1.3 times than the state-owned enterprises. However, the amount of loans and credit get from formal financial system is little for these private enterprises, because the emphasis of formal finance system is still designed to service the state-owned enterprises. It is a big obstacle for middle-size and small private enterprises. Typical Chinese middle-size and small private enterprises get only 10% of their operating capital from bank, while in South Korea and Thailand, the number is 40%.⑦
The current Chinese banking system is crippled by non-performing loans to
⑥Cem Karacadag,” Financial System Soundness and Reform,” International Finance, V ol. 37, No.1, 2002, pp87。

⑦Paul Gruenwald and Jahangir Aziz, “China and the Asian Crisis,” Asian Economy, V ol.41, No. 5, 2002,pp58。

unprofitable state-owned enterprises, resulting in capital starvation among more profitable state and non-state firms. Liberalizing interest rates, establishing full currency convertibility, and opening the financial system to private investors would help break this logjam by introducing new risk-reward incentives. A deregulated financial system would be established to enable Chinese firms to compete according to their efficiency, and price and quality of their goods and services. State commercial banks need to make effort in revamping internal controls and risk management, reducing staff, and rationalizing the branch network. Government favors in the form of subsidized loans or other instruments would no longer be necessary to prop up Chinese exporters. Such a market-based environment would help ease trade friction between China and other countries and pave the way for its accession to the World Trade Organization.
However, the financial position of the state commercial banks remains very weak, and much remains to be done to prevent the emergence of new nonperforming loans.
3.3 Inadequate Infrastructure
China's insufficient transportation infrastructure, outdated transportation technology, and under-developed logistics are serious bottlenecks in the food sector. Particularly, the insufficient harbor capacity, the overburdened railroads, and the lack of adequate roads in many remote areas pose serious risks in case of local or regional food shortages. As the Chinese saying: "The trip to Sichuan is more difficult than a trip to heaven".
Especial in the western parts of China, which includes 12 province, municipalities and autonomous regions, is home to nearly 30 percent of total population left behind in development. The region is known for its lagged infrastructures though it abounds in ample mineral resources, such as oil and natural gas, in a vast area covering 60 percent of the territory.⑧
The other example is about international communication, the cost of international telephone calls is too high.
⑧Bengal Tiger, “Infrastructure i n China”, Industry and Economy, V ol. 29, No.5, 2003, pp 95。

3.4 Unemployment and Income Disparity
China's economic performance has fallen short in one critical area: job creation, especially in the services sector. Overall national employment growth stayed below 1 percent in 2000 for the third year in a row and even slowed slightly from 1999. This represents a significant deceleration from job-creation rates in the mid-1990s.
⑨Meanwhile, the share of employment in services hardly changed at all as employment in agriculture actually increased. Such a backward shift in the structure of employment is not typical of a fast-growing economy, which normally experiences the classic shift of labor out of agriculture and into manufacturing and services. China's macroeconomic challenge is thus to generate GDP growth based on rapid expansion of service-sector jobs.
Some 16 million layoffs from SOEs during 1998–2000 indicate the huge social challenge facing China as the "iron rice bowl" system of the past is demolished. The goal is to shift responsibility for social services (including education, health, pensions, and unemployment) from the SOEs to the private sector or to local and provincial governments.
China's economy needs to create more jobs than it has in recent years, and stronger domestic demand is the key to meeting this need. Even though official GDP growth rates in recent years have been relatively high by international standards, since 1998 employment growth has faltered in critical ways. Enterprise reform layoffs accounted for some of this pattern, but not all. Somehow, in recent years, employment growth patterns have become disconnected from officially reported economic growth. High productivity gains are one contributing factor, and exaggerated GDP growth statistics are another. Whatever the reason, officially reported growth of between 7 and 8 percent has not been high enough to meet China's needs. Government projections promise an increase in the scale of urban layoffs, even as the status of laid-off workers is being downgraded. Beginning in January 2001 workers let go from state enterprises have only received unemployment compensation rather than the ⑨Paul Heytens and Cem Karacadag, “The Unemployment Problem in China,” Journal of Marketing, V ol. 67, No.7, 2003, pp14。

earlier, more generous, furloughed-worker benefits. This move will increase the potential for urban worker unrest; the only real solution is more jobs.
The huge income disparity is another serious problem. The coastal regions have benefited much more from China's opening than the poor western and central regions and those with a high concentration of SOEs. A more systematic revamp of the current, regressive system of interregional budget transfers is needed to address the growing imbalance between the richer provinces and those with fewer resources yet large social safety and investment needs. If the problem is unsolved, civilian resentments and uprisings might break out, which are harmful to the national stability and economic growth.
3.5 Pollution
Another weakness of China is the country's alarming level of air and water pollution. Five of China's largest cities, including Beijing, Chongqing and Guangzhou, are among the most polluted cities in the world, according to the report. Not only does China suffer as many as 289,000 deaths a year because of high pollution levels, it is estimated that the country was also losing between 3 and 8 percent of its annual gross domestic product because of environmental degradation.⑩
⑩Edward A. Gargan, "Weakness Seen in China's Economic Boom," New York Times, V ol.21, No.9, 1997, pp67。

Conclusion
To sum up, China owns both advantages and disadvantages in the world economy. The strengths are its economy-oriented policy, huge market, and low cost and high quality of human resource. The weaknesses are its absence of credit legal system, inefficiency in state owned enterprises and financial system, inadequate infrastructure, unemployment and income disparity and pollution. The most important task for Chinese government is to maintain the fast economic growth and to make good use of our unique advantages, in the mean time, to take measures to solve the present problems and overcome the obstacles.
Reference:
1.Albert Keidel, “China's Economy a Mixed Performance”, China Business, V ol. 27, No.3,
2001, pp90
2.Bengal Tiger, “Infrastructure i n China”, Industry and Economy, V ol. 29, No.5, 2003, pp 95
3.Cem Karacadag,” Financial System Soundness and Reform,” International Finance, Vol. 37,
No.1, 2002, pp87
4.Earl Drake, “China's Future and Prospects" China's Macroeconomic Outlook, Vol. 127, No.7,
2002, pp49~51
5.Edward A. Gargan, "Weakness Seen in China's Economic Boom," New York Times, V ol.21,
No.9, 1997, pp67~68
6.Paul Gruenwald and Jahangir Aziz, “China and the Asian Crisis,” Asian Economy, V ol.41,
No. 5, 2002,pp58
7.Paul Heytens and Cem Karacadag, “The Unemployment Problem in China,”Journal of
Marketing, V ol. 67, No.7, 2003, pp14~15
8.Petersen N.C, “Reforming China's Trading System”, Trade and Democracy, Vol. 9.No.9, 200,
pp37~38
9.Wanda Tseng and Markus Rodlauer, “China Competing in the Global Economy,”
International Banker, V ol. 14, No. 2, 2003, pp 25
10.]Will Martin, “China's Economic Policies and World Trade,” Economic Reform Today, V ol.
23, No.11, pp86。