CHINA

Presented
by
TANU

RESOURCES OF CHINA

China is rich in mineral resources, and all the world's

known minerals can be found here. To date, geologists
have confirmed reserves of 158 different minerals,
putting China third in the world in terms of total
reserves. Reserves of the major mineral resources,
such as coal, iron, copper, aluminum, stibium,
molybdenum, manganese, tin, lead, zinc and mercury,
are in the world's front rank. China's basic coal
reserves total 337.34 billion tons, mainly distributed in
northwest China and north China, China's 21.76 billion
tons of the basic iron ore reserve are mainly
distributed in northeast, north and southwest China.
The country also abounds in petroleum, natural gas, oil
shale, phosphorus and sulfur. Petroleum reserves are
mainly found in northwest, northeast and north China,
as well as in the continental shelves of east China. The
national reserves of rare earth metals far exceed the

Economy of china
China has a socialist
market economy.
Worlds second
largest economy by
nominal GDP.
Worlds largest
economy by
purchasing power
parity as per IMF.
Worlds largest
trading nation.

Worlds fastest
growing consumer
market and second
largest importer of
goods.
Global hub for
manufacturing, largest
manufacturing
economy in the world
and largest exporter of
goods in the world.

Technology

263 million landlines in a population of 1.3 billion

people.

China is the worlds largest mobile telephone

market
Within China, mobile communication is the most
profitable sub-sector of the telecommunications
market. This is dominated by two domestic
companies, China Mobile, and China Unicom cutting
into fixed line services of China Telecom, amongst
others.

Chinas Trade History

Peoples Republic of China (PRC)1949
No significant foreign trade for first 30 years
1950s and 1960s total value of trade 2% of
GNP
Annual import & export volume & national
income averaged
-12.2% (1950s)
- 8.4% (1960s)
- 9% (early 1970s)
12/15/1978:US & China announced that the two
governments would establish diplomatic relations
on 1/1/1979

Chinas Trade History

Cont
Trading partners
1950s Soviet Union and Eastern Europe
L/T credits from the Soviet Union U.S.$1.9B
Funding of construction projects
1960s Developing countries
Deferred payment method to import U.S.
$670M worth of technological & equipment
from the West

Banking
Peoples Bank of China (central bank, founder
of Chinas banking system, and govt.
treasury) has sole responsibility of issuing
currency and controlling the money supply

Trade

Inadequate port facilities and a lack of

warehousing and cold storage installations
impede both domestic and international
agricultural trade.
The U.S. trade deficit with China rose to $35.6
billion, the trade gap with China
representsmore than 80% of the total U.S.
trade deficitof $43.0 billion in 2014.While US
exports to China reached $120 billion, making
it the third-largest export market for US goods
behind Canada and Mexico.
Under its WTO accession agreement, China is
reducing tariffs, eliminating import licensing
requirements, and addressing other trade
barriers.

Tariffs, Quotas & Embargos

The average tariff rate is less than 17%
China can impose anti-dumping duties on foreign
goods if there is evidence showing that they are
sold at dumping prices.
The steel industry, one of Chinas largest
industries, subsidizes domestic producers.
China uses both tariff and non-tariff measures to
regulate imports. Tariffs imposed include import
duty (applied on the import CIF value and a few
specific and compound duties on the volume
imported), value added tax (VAT) and
consumption tax; non-tariff measures include
import licenses, quota control, restricted import
list, etc.

Taxes
Value added tax (VAT) is imposed on all
commodities in addition to import tariffs. The
basic rate is 17% and 13% on the following
commodities: food and edible vegetable oil;
drinking water, heating, natural gas, coal gas,
liquefied petroleum gas; books, newspapers
and magazines; feedstuffs, chemical fertilizer,
pesticides, agricultural machinery and
agricultural plastic sheeting.
11 categories of goods are also subject to
consumption tax when entering China. These
include: cigarettes, liquor, cosmetics, skin- and
hair-care products, jewellery, firecrackers and
fireworks, petroleum, diesel, motor vehicle
tyres, motorcycles and small motor vehicles.
The tax rates range between 3% and 45%.

THANKS !