BUSINESS ECONOMICS

SYNDICATE 1

Aditya Agung (29116411)

Mentari (29)
Riza Zakaria (29)
Sandra Faninda (29)
 CHINAS PROFILE

China the third-largest country in the world in terms if size, with

a total area of 9.6 million square kilometers.
According to official Chinese statistics, real GDP growth in the
PRC averaged approximately 9.5 % per annum from 1978 to
2004. Growth peaked in 1992 at 14.2 % fell to 7.1% in 1999.
In 1980 income per capita China was US$192, in 2003 per
capita income was US$1 ,100 using market exchanges rates, but
US$4,995 using purchasing power parity (PPP) rates.
China grew nearly five times faster than world trade. Chinas
exports shot up from US$1 .43 billion in 1980 to US$439 billion
in 2003.
China foreign invested enterprise (FEIs) had been major driving
force behind Chinas trade growth. In 2003, FIEs accounted for
57.0% Chinas total exports and 57.8% of Chinas total imports.
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One of chinas competitive advantages is in Labor Intensive

light manufacturing industries.
In Despite chinas have a low wage rates they had high
productivity in Manufactures.
China get an appreciations because of their decisions to not
devalue the renminbi as an important gesture in support of
hastened regional recovery helping others ASEAN country
through their crisis.
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China become the leading exporter of garments, footwear,

consumer electronics products, several home appliances,
travel goods, toys, cutlery, bicycles, motorcycles and many
other products to Indonesia that provided at a low cost, one of
the main reason of their Low Cost product its because of their
Low Labor cost.
China have become an indispensable early stop for new heads
of state in the region.
Southeast Asian nations had seen some facilities benefit
from Chinas emergence as a market resources and
intermediate goods, while other facilities were shut down or
shifted to China.
 ACCORDING TO DATA

Indonesia is one of the biggest country in ASEAN to bring our

FDI to China at US$150 million. China had their FDI bring to
Indonesia at US$27 million that strengthen our currency
exchange rates.
In terms of composition of exports to China, Indonesia had
positive impact, because its increasing our export and growth
rate on our economic section like; Electronics (8% exports,
71 .0% growth rate), Machinery and vehicles (11% export,
18.3% growth rate), Metals (5% export, 48.8% growth rate),
Chemicals (12% export, 25.7% growth rate), Minerals and
fuels (22% export, 46,2% growth rate), Agriculture and food
(31% export, 15.3% growth rate), Instruments (1% export,
>120% growth rate), Plastic and rubber (6% export, 89.5%
growth rate).
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