The Chinese Car Industry

It is not surprising that since 2009 the Chinese car industry has become the largest car industry in the entire world. 2009 saw China develop 13.79 million automobiles.
These are China's biggest players in their car industry,BYD, Lifan, Chang'an (Chana), Geely, Chery, Hafei, Jianghuai (JAC), Great Wall, Roewe. The rest of the car produced in China are on joint ventures with foreign car manufactures such as Volkswagen and GM, this could not only improve the Chinese car industry but also their economy aswell. Many of the cars produced in China are sold in China, which seems surprising compared to the vast amount of foreign cars that the United Kingdom imports.

Jianghuai Automobile

Jinghuai Automobile & Co LTD the company is based in the Anhui Province in China. This company was one of the most productive car manufacturers in the whole of China. The company's estimated production capacity is over 500,000 units/year as of 2009.

http://news.bbc.co.uk/1/hi/business/7879372.stm
this article shows the Chinese car industry overtaking the US

Can China Outstrip America?

Because of China's annual growth being at a huge 10% per year for the last 30 years, it is not surprising that China can and most probably will surpass the US economy. The IMF has projected that China's economy will surpass America in the year 2016.



Here is an article showing the views of that in the video above.
http://www.guardian.co.uk/commentisfree/cifamerica/2011/apr/27/china-imf-economy-2016

Not only will China outstrip America in business terms, but this video shows us that it is coming quite apparent that China are now becoming able enough to outstrip America in military terms to.

Economic Basics: China's GDP and Annual Growth

Gross domestic product (GDP) is "The market value of all final goods and services produced within a country in a given period".

The GDP of China is a massive $5.88 trillion this is the worlds second largest GDP, the largest GDP in the world as it stands is the United States of America with a GDP of $14.7 trillion. But what is more amazing than China's Gross Domestic Product, is it Annual Growth, China's average annual growth has been a staggering 10% for the last 30 years. 

Why is China's economy growing so fast ?

 

There are many reasons as to why the economy of China has grown so large in such a short space of time. The catch up effect has played a big role in helping China's economy growing larger, this is where a country has a very low GDP and they can therefore grow and expand faster then countries of a high GDP, for example the United States of America. Another reason as to why China has had a rapid growth in their economy is because of the fact that they are a massive exporting country, this is because of the extremely cheap labour that they provide, yet this is only achievable in very poor working conditions and lack of care towards their workers. Unlike many other countries China is able to use a huge amount of their own resources for example coal, this lowers the countires total spending on importing goods, so now allows them to grow their own economy. Also another reason as to why China's economy is growing fast is because of the fact that they are a Socialist country, this means that China will therefore have a Command economy, meaning that the state deciede what gets produced. But yet now China are tending to swing towards a more Transitional economy, meaning that the state has began to liberalise some sectors and there are begining to be more privately owned businesses allowing people to make decisions based on supply and demand.

This picture is showing China's 'Outbound Foreign Direct Investment' from the years 1982 - 2008. As you can see from this image China's foreign investment has increased a considerable amount in the last 10 years. Foreign investment allows China's economy to grow because of the returns on successful investments. Although this could take years to reap the rewards of these investment, it still shows us how China's economy is growing fast.

China's Growing Population

The population of China is the biggest in the entire world, making up about 20% of the worlds population China has around 1.32 billion people. China's population hit the 1 billion mark in 1982. The majority of China's people live in the fertile, humid lowlands of the east, with about a third of China’s people living along China's coast.  Due to so many people living in China, they are enforcing a One-Child policy which restricts families to only having one child.

http://factsanddetails.com/china.php?itemid=129&catid=4&subcatid=15

The image above shows the whereabouts of the population in the country of China, this is shown through the red coloring, the fact that most of the red is all on the east side of China shows that this is perhaps a more industrialized area. This is true as Shanghai and Hong Kong are located on the east side of China.

The link above shows the population facts about China from 1982.



Here is a Youtube video which says that China has increased it's population by 74 Million people in 10 years, which is an extremely impressive feat. This has enabled China's growth to increase speedily, as it's workforce would now be getting greater and greater. With a greater workforce, a larger amount of goods could be both produced and consumed.

China & Its Growing Economy

This blog has been set up in order to show you the rise in the economies of China and India and how they've grown in rapid size since the late 80's and early 90's until now. This blog will have a range of information to show you these changes, for example video clips, interviews, newspaper articles, articles, audio files and graphs.

I hope you find this helpful

Jack Tomei