Notable progress recorded in China's export sector
12 Jul '06
2 min read
The purpose of this presentation is to discuss, from both the multilateral agency viewpoint and on the basis of my own experience, the main aspects of the remarkable development China has recorded in its export sector in the past few decades, the challenges the country must address in the medium term in order to ensure balanced and sustained economic growth, and the possibilities China's development raises for Latin America.
Part I - China's Integration in the Global Economy
Introduction Since the end of the 1970s, the Chinese economy has been expanding dramatically with an average annual growth rate of 9 percent. Capital formation, which has been fuelled by high domestic savings rates, has been equally notable and is now estimated to be 50 percent of GDP, according to the latest IMF figures.
Annual inflation meanwhile remained steady at around 1 percent between 1996 and 2003, a period which was also characterized by periods of deflation despite the rapid expansion of the economy.
The expansion of China's participation in international trade has been one of the most outstanding features of the country's economic development. Chinese exports rose on average 5.7 percent in the 1980s, 12.4 percent in the 1990s, and 20.3 percent between 2000 and 2003.
By 2003, China's export growth rate was seven times higher than the export growth rate recorded by the world as a whole. Foreign direct investment has also soared, and currently over a billion dollars in FDI are invested in China each week.
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