Industrial Contribution to the Economy

8/7/2019 Industrial Contribution to the Economy

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INDUSTRIAL CONTRIBUTION TO THEECONOMY


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ROLE OF THE GOVERNMENT

The Chinese government wields industrial policy to help improve thecompetitive standing of Chinese firms.

It is now generally accepted that government intervention has at timesplayed a positive role in promoting economic growth in the high-

performing economies of East Asia.

Industrial policymeasures that favor one or more industries overothers,can take a range of forms, such as educational programs, exportsubsidies, and preferential loans.

The Government has nurtured the industrial sector based on 3 factors:-a) Industrial structure-

Simultaneous growth of both small and large scale industrieshas

been favoured.

The government has also encouraged many startups and


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the incubation level

b) Foreign Investment and Technology Transfer

c) Absorptive Capacity


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AGRICULTURAL INDUSTRY

China is one of the world's largest producers and consumers ofagricultural products with approx. 300 million Chinese employed by thisindustry.

It is the largest producer of rice & principal source of crops like

wheat,maize,cotton,tea etc.

China practices intensive cultivation,i.e.,it cultivates as many cropsas possible on the land available to them.

This results in high yields & increased foreign trade revenue.

Animal husbandry is an important branch of the agricultureindustry,with China being the largest producer of livestock.

The industry contributes to 13% of the countrys GDP


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THE SERVICE SECTOR

Once described as the iron rice bowl,China has recovered to havemore labour friendly laws and is constantly devising ways to keepup itssocialist image and provide for its people.

China's services output ranks fifth worldwide;accounting for

approximately 40.3% GDP.

Public administration being the mainstay of this sector,other avenueslike tourism,and private firms are also providing employment to thepeople


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EXTERNAL TRADE

International trade makes up a sizeable portion of China's overalleconomy.

The course of China's foreign trade has experienced considerabletransformations since the early 1950s.

Since economic reforms began in the late 1970s, China sought todecentralize its foreign trade system to integrate itself into theinternational trading system. On November 1991, China joined the Asia-Pacific Economic Cooperation (APEC) group, which promotes freetrade and cooperation in the economic, trade, investment, and

technology spheres.

Imports are a major means of trade.The country imports large numberof goods from South-east Asia,U.S & Russia


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Export growth has continued to be a major component supportingChina's rapid economic growth

About 80 percent of China's exports consist of manufactured goods,most of which are textiles and electronic equipment, with agricultural

products and chemicals constituting the remainder. Out of the fivebusiest ports in the world, three are in China.

The China Council for the Promotion of International Trade (CCPIT)promotes China's international economic and commercial interests.This is accomplished by developing business cooperation and

exchanges with foreign countries. It also produces economic data,creates diplomatic ties and is active with trade arbitration issues.


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FOREIGN INVESTMENTS

Foreign-invested enterprises account for 5860% of China's importsand exports

Foreign investment remains a strong element in China's rapidexpansion in world trade and has been an important factor in the

growth of urban jobs

China is now one of the leading FDI recipients in the world, receivingalmost $80 billion in 2005 according to World Bank statistics. In 2006,China received $69.47 billion in foreign direct investment.

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Industrial Contribution to the Economy