6/18/2023 0 Comments Biggest export from us to china![]() Their common, overriding aim is to replace foreign technologies, products, and services with local technologies, products, and services in the PRC market through any means possible to enable local companies to dominate both the local and international markets. While ostensibly intended simply to raise industrial productivity through more advanced and flexible manufacturing techniques, these policies are emblematic of the PRC’s approach to “indigenous innovation,” which is evident in numerous supporting and related industrial plans. This includes Made in China 2025 (published in 2015) and the 14th Five Year Plan (published in 2021) which target 10 strategic sectors, including advanced information technology, automated machine tools and robotics, aviation and spaceflight equipment, maritime engineering equipment and high-tech vessels, advanced rail transit equipment, new energy vehicles (NEVs), power equipment, farm machinery, new materials, biopharmaceuticals, and advanced medical device products. The PRC’s State Council industrial plans are a threat to U.S. The beneficiaries of these constantly evolving policies are not only state-owned enterprises but also other domestic companies attempting to move up the economic value chain. The PRC continues to pursue a wide array of industrial plans and related policies that seek to limit market access for imported goods, foreign manufacturers and foreign services suppliers, while offering substantial government guidance, resources, and regulatory support to local industries. Bureau of Economic Analysis The PRC’s Industrial Policy Real growth in private consumption is estimated to drop from 5.2 percent to 2.0 percent. In July of 2022 the International Monetary Fund (IMF) adjusted its 2022 GDP growth prediction for the PRC down to 3.3 percent. The government’s “zero-covid” pandemic policies have depressed household spending and private business activity, which will have a negative impact on its annual growth target of 5.5 percent. GDP per capita in 2021was almost six times as large as the PRC’s. While the dynamism of the PRC’s private sector has resulted in economic development that has led hundreds of millions of people out of poverty over the past several decades, the country is still not considered a ‘developed’ economy on a per capita GDP basis. The country is facing a shrinking workforce, reforms that reduce debt-fueled growth, mounting provincial debt, and trade turmoil with the United States. Irrespective of the COVID-19 crisis, the PRC’s growth rate has slowed in recent years. The PRC bucked global trends and posted positive global growth through the pandemic, albeit in a very uneven fashion, as demonstrated in the graph below. The Yangtze River Delta, centered around Shanghai, has a GDP roughly the size of Germany’s. Its largest province, Guangdong, has a nominal GDP larger than Canada’s. ![]() The PRC’s economy is larger than those of the next four economies - Japan, Germany, the United Kingdom, and India – combined. While consumption and services have been an emphasis in its industrial policies, the PRC government continues to preserve investment and manufacturing as the main components of its economy. The People’s Republic of China (PRC) is the world’s second-largest economy by gross domestic product (GDP), a position it has held since 2010. Economic Development Organizations (EDO).Foreign Direct Investment Attraction Events.Facing a Foreign Trade AD/CVD or Safeguard Investigation?. ![]()
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