kunming log

Lecture Notes (audio to follow)

Economic Development in China and in Yunnan Province*
A Lecture by Dr. Jianhua Xhang, Yunnan University (Kunming, China)

Part I: China

1.3 billion people (2005)
10.5% official growth rate (2005) est. to be closer to 8%
Population: 9.6 million sq km.
56 nationalities

Governance structure: province-->city-->county-->district, town, village

2006 GDP: 20940.7 Yuan

Sectors of China
Agriculture 11.8% (employees 45% of all labor)
Manufacturing 48.7% (incl. mining activities)
Service 39.5 (incl. tourism, finance, transportation)

Progression
1949 - 1978: centrally planned economy
1978 - 1984: rural area economic reform
1992: reform extended to urban areas (begin market economy)
est. 20 years to complete transition to full market economy

Exports
#1: Electronic goods, #2: Textiles

Part II: Yunnan Economy

44 million people
most diverse Province with 26 nationalities
39459 sq km land
245880 Yuan 2003 GDP -- 5647 Yuan per cap income
2003 urbanization rate: 26.6%
2006 GDP - 400187 million Yuan/ 8300 Yuan per cap
2006 urbanization rate: 30.06%

GDP - 2005 - 9%; 2006 - 11.6%

Sectors
agriculture 18.8%
Manufacturing 42.7%
Service 38.5%

FDI: 10% GDP
most exports to South East Asian countries
112 million Yuan (2003)
798 million Yuan (2006)

Largest industries
Metallurgical (tin, copper, lead, zinc, iron, steel)

Machine tools (lathes, tools)

Chemicals (phosphate rock, fertilizers, industrial perfumes)

Electricity (hydro, some thermo)

Food processing (sugar, tea, condiments) <--2nd largest sugar producer in China

Cigarettes/tobacco (#1 highest quality tobacco in China; ideal climate, soil, conditions; Virginia tobacco introduced 100 years ago; sell cigarettes around world; sell raw tobacco to factories around China; 70% of Chinese adult males smoke)

Construction materials (marble, cement)

Tourism

Historical background
Yunnan part of "South Silk Road" 2K years ago; home of great explorer (Zheng He (1371-1433)); French built Hanoi-->Kunming railroad (100 years ago); WWII: Yunnan Flying Tigers (American Volunteers)

Major Issues
Continued underdevelopment; bi-structure economy (modern/traditional); pollution

Prospects
Rich natural resources; improved infrastructure; location to ASEAN; reform & open policy

Misc info:
member of Greater Mekong Subregion (GMS) (created in 1992 by Asian Development Bank, UN, etc)

Nov 2001 - ASEAN meet with China; "10+1 -- free trade area"; CAFTA; currently common effective preferential tariff (CEPT)

Beijing "Go West" Policy: $ for improved infrastructure/capital improvements; "built it and industry will come"

40% of all Chinese oil is imported




*audio to follow once I get a faster Internet connection!

posted by Aki @ 8:50 AM