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Prediction New Economic Development

New economic social development causes China is as the world factoryHow has China achieved an export boom and why it can become world factory? Is it high population the main factorto help China to become world factory? I will attempt explain as below: IN lase decade, China is only one farming developed country, its agriculture is its main GDP income source.But, when it enters new economic development, its industry had been developed to replace its traditional agriculturaldevelopment in future new economic society. China's export boom has been accompanies by huge inflows of FDI since itsopening up in the large 1970s. As China became the third largest exporting nation ( $594 billion) in the world in 2004 fromthe thirty-second ( $18 billion) in 1978. How does FDI affect China's export performance?IN fact, China's exports mainly through labor-intensive processes and component specialization within vertically integrated international industries, in addition to export through converting import-substituting industries, exports thRough converting import-substituting industries, exports of local raw material processing. So, FDI enhances exports as well through spillover effects on local firm's exporting activities( domonstration effects, linkages, and diffusion of technology). Moreover, IT helped in improving China's export commodity structure through expanding exports in manufacturers and high and new-technological products. Hence, it seems that high population growth is not the main factor to cause China can develop its manufacturing industry in success. It ought be its manufacturing technological improvement factor to help it can develop its domestic manufacture industry, even it can assist foreign investors to choose China's factory labours to help US, UK, Germany, France etc. different western businessmen to manufacture their products.ON the other hand, China's cheap labour is another factor to help it become world factory. For example, one US factory labour needs to pay US$20 minimum wage per hour to help US any factories to manufacture their products. Otherwise, China's labours are only needed to pay US$10 minimum per hour to help US any factories to manufacture their products. So, China's cheap labour wage factor may be another important factor to persuade any foreign countries product manufacturers to choose China's labours to replace their local labours.ON the other hand, China's duty-free processing trade factor may be the critical role to excite its export business, also it can assist its manufacture factory needs raise, because China's export and import activities increase, so it can bring China' labor needs to help it to manufacture any kinds of products to local manufacturers and overseas manufacturers. Then it will assist China's factory labours number increasing need indirectly.The duty-free processing trade in China has two varients in practice: processing imported materials into exports and processing imported components into exports. The first one referred to as processing materials, takes place under a contract in which a foreign firm ( usually located in Hong Kong) ships materials to domestic factories, which usually play a fairly passive role in such contracts. The domestic factories, often township or village enterprises, account for bulk ( 86 percent in 1995) of this type of processing trade ( Naughton, 1996). As a new form of economic trade development to China, the processing trade has increased rapidly in China during the past 30 years from agricultural industry development stage. The share of exports under processing trade in total exports rose from 18% in 1996, to 47 % in 1992, and to 55 % in 2004. The share of imports in total imports went up from 16 % to 41%, at least two factors contribute to the rapidly growing processing trade.
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PRODUCT DETAILS

  • Title: Prediction New Economic Development
  • Author: Johnny Ch Lok
  • Publisher: Independently Published
  • ISBN: 9798698698784
  • Length: 1.01 inch
  • Width: 7.99 inch
  • Languages: English
  • Subtitle: Social Change
  • Format: PaperBack
  • Category: Ecommerce
  • Publication Date: 16/10/2020
  • Pages: 388
  • Height: 10.0 inch
  • Weight: 2.34 pound

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