When China embarked on economic reform, it had too much income equality. The egalitarian arrangements in the communes and factories stifled incentives and produced enormous inefficiency. The new Chinese leadership recognized that greater income inequality was necessary to provide the incentives essential to a marketizing economy that was in the process of making the challenging transition from a central planned economy to a market-driven, private-sector-based economy. Inequality increased rapidly over the reform period. The Gini coefficient of household income per capita was 0.49 in 2007 (Li et al. 2013), and China was found to have the joint highest inequality in Asia (Asian Development Bank 2007: figure 1). Income inequality had become a matter of concern to the Chinese leadership.
New York: Though the U.S. and Chinese presidents heralded a "new model" of cooperation at their recent weekend summit, a growing competition looks more likely. The whirlwind of activity before President Barack Obama met with President Xi Jinping in the California desert revealed that Beijing and Washington's sights are set on a similar prize - and face differing challenges to attain it. Their focus is Latin America and the prize is increased trade and investment opportunities in a region where economic reforms have pulled millions out of poverty and into the middle class. Latin America is rich in the commodities and energy that both China and the United States need, largely stable politically and eager to do deals.
New York: What does the future hold for US-China economic relations? A new study calls the stakes "enormous" and says that if "the most important economic partnership in the world" is able to keep doing what it's doing, by 2022, the two countries' economies will be more interdependent than ever, and hopefully provide the basis for a healthy relationship. The study, US-China Economic Relations in the Next Ten Years: Towards Deeper Engagement and Mutual Benefit, was sponsored by the China-United States Exchange Foundation and released on Tuesday at an event at the Asia Society in New York City.
New Delhi: At the invitation of H.E. Dr. Manmohan Singh, Prime Minister of the Republic of India, H.E. Mr. Li Keqiang, Premier of the State Council of the People's Republic of China, is on a State visit to India from 19 to 22 May 2013. Premier Li held talks with Prime Minister Dr. Manmohan Singh and will call on H.E. Mr. Pranab Mukherjee, President of India. The leaders of the two countries had an in-depth exchange of views on bilateral relations and regional and international issues of mutual interest in a sincere and cordial atmosphere and reached broad consensus. The two sides reviewed with satisfaction the comprehensive and rapid progress of India-China relations in the 21st century.
New Delhi: The first Defense White Paper released by China under the new leadership of Xi Jinping initially appears to follow the general trend set by the seven white papers published earlier. Even as it emphasizes the familiar “five principles of peaceful coexistence,” the “new security concept” and China’s commitment to peaceful development, it differs from its predecessors in small, but very significant ways. The first notable change is the very title. From the bland heading of “China’s National Defense in –” this year’s White Paper has a thematic title “The Diversified Employment of China's Armed Forces.”
Boao: As regards China, I am not as well informed as I would like to be. China has been the main motor of growth for the global economy ever since the financial crisis. It is a smaller motor than the U.S. consumer had been during the boom years; that is one of the reasons why global growth has been so anemic. China must now change its growth model. It cannot rely on export and investment-led growth any longer, partly because the rest of the world cannot continue absorbing a chronic Chinese export surplus and partly because the rapid growth of investments has reduced profitability. Without profits it is difficult to finance further investments.
Beijing: It is a great pleasure to join you all today in Beijing to discuss the role of China in today’s system of global governance. Few could possibly disagree that China’s economic performance since 1979 has been miraculous. A poor and inward-looking economy with a per capita income of 180 USD has been transformed into a middle-income country with a GDP per capita of around six thousand dollars. Hundreds of millions of people have been lifted out of poverty. No other country has achieved an average of 10 per cent growth over such a long period of 30 years. The world has clearly benefited from China’s growth, its affluence, its strength and of course, it is feeling its increasing global impact. These achievements are not without challenges, as mentioned this morning by Vice Premier Zhang Guoli.
Washington: The Chinese economy has been growing at a rapid pace for over thirty years. From 1978 to 2011 real GDP growth averaged about10 percent per year, resulting in a more than 20-fold increase in the level of output. Can this continue? Eichengreen et. al. (2011) argue that the evidence from other countries suggests it cannot, and in fact the economy has already slowed in the past couple of years. Although some of the recent slowing may be cyclical, there also has likely been some cooling in the rapid pace of trend growth. This is not surprising - a continuation of growth rates near 10 percent as the Chinese economy becomes more developed would be unprecedented. The real question is by how much and over what period is Chinese economic growth likely to slow further. The purpose of this paper is to try to provide some perspective on this question by looking at some of the supply-side factors that influence the rate of Chinese GDP growth.
Paris: China has made tremendous progress toward achieving inclusive growth, but major reforms are needed to ensure a fourth decade of rapidly converging living standards and a greener economy, according to the OECD's latest Economic Survey of China. These reforms include deregulating interest rates, opening markets dominated by state-owned enterprises to competition, increasing the supply of building land, treating migrants to cities in an even-handed fashion, taxing carbon and deregulating energy prices. Full implementation of these reforms will foster socially inclusive urbanisation, a key to a continued rise in domestic demand.
Beijing: Unveiling a five-point formula to improve relations with India, China's newly-elected President Xi Jinping today said the resolution of the boundary dispute between the two sides "won't be easy" and pending its final settlement "peace and tranquility" should be maintained on the border without affecting the overall ties.