In the year 2012-2013, the GDP (Gross Domestic Product) of China reached 51932.2 billion Yuan (or USD 8332.48 billion) with a 7.8% year on year growth according to the National Bureau of Statistics. The 7.8% GDP growth of 2012 also marked the lowest growth rate since 1999 though it is still better than the market expectation of 7.5%. For years, China had always hold the banner of “securing 8% GDP growth” to keep enough of job creation because of the huge labor force running into cities. But since 2011, the start of the 12th Five Year Plan, the policy direction seemed a gradual change with focus being shifted from growth of GDP numbers to the quality of growth in term of setting a 7% annual GDP growth target and releasing policies to control overheated housing property, corruption as well as other major issues. These policy changes will certainly affect the economic growth for the short term but they are expected to benefit the economy in the long run if well implemented.
|Province/Municipality||Total GDP(Billion RMB)||Total GDP(Billion USD)||GDP Growth Rate|
|Inner Mongolia Autonomous Region||1600.00||256.72||15.10%|
|Guangxi Zhuang Autonomous Region||1300.00||208.58||10.90%|
|Xinjiang Uygur Autonomous Region||750.00||120.34||12%|
|Ningxia Hui Autonomous Region||232.66||37.33||11.50%|
|Tibet Autonomous Region||70.00||11.23||12%|
GDP Breakdown by Areas throughout 2012 (China has 23 Provinces, 5 Autonomous Regions, 4 Municipalities & 2 Special Regions, the economic data of special regions of Hong Kong and Macau and province of Taiwan is generally not included in the country’s GDP statistics) (Source: National & Local Bureau of Statistics)
Data shows that the gini coefficient of China is running in a high level reaching the peak of 0.491 in year of 2008 but keep decresing in the following year touching 0.474 in the last year. From paper, the gap between rich and poor is basically the same as it was 10 years ago. But a different report, released in December by researchers from the Southwestern University of Finance and Economics in the city of Chengdu, marked China’s Gini at 0.61 for 2010. Despite the data difference, it is widely accepted the the gap between rich and poor of China is still in a high level which could further lead to a number of social and economic problems.
The economic reform that happened since 1979 till now under the leadership of Deng XiaoPing, who was later considered as the designer of the economy of China, changed the plan economy that had dominated during the majority of time after formal independence of the new China with the market system as secondary. The government started to reform the economy and introduce the market economy which had previously been considered as the economy form of the capitalism into the socialism economy because the Chinese leadership had found out the shortcoming of the over centralized economic planning and the effectiveness of using market forces. Though the economy reform has speeded up its pace in the new century especially with close interaction with the global economy and under the pressure in the WTO framework, the Government role in Chinese National Economy is still critical.
The Commerce Department today held a regular media press announcing data which show that from January to February, China’s actual use of foreign investment reached 17.484 billion U.S. dollars with a year-on-year drop of 1.35%. In February alone, China’s actual use of foreign investment was 8.214 billion U.S. dollars achieving an increase of 6.32%. This is the first time this digit returned to positive for the eight consecutive months. But it is still early to conclude that the FDI is again returning back to the high growth track with data of the following months need to be monitored closely to make a safe judgement.
Consumer Purchasing Power
Along with the surge of GDP growth, the influence increase consumer purchasing power has also become obviously in the recent years. International shopping and consumption expert Global Blue, announced on March 15, 2013 that the amount of tax free shopping from Chinese consumers reached a record 3 billion euros (about 24.4 billion yuan) in 2012, an increase of 58% compared to that of 2011. Arjen Kruger, executive vice president of Global Blue said: “in the past six years, Global Blue witness the rise of Chinese shoppers. 2012 is the second year in a row in which China is the no.1 sourcing country of our global shoppers, spending up to € 3,000,000,000. Global Blue is committed to helping Chinese tourists travelling abroad to enjoy cheaper shopping. We not only provide shopping discounts to consumers before departure but also will also update the local latest shopping secret after their reaching the destination. “