this ppt contains information about 1. brief about china 2. Fta trade of china 3.china/india trade

1. By -Akshat poonia , Aanchal bansal, Eshan
gambhir, Jasmine sahi , Arshpreet
University instt. of applied mgmt. sciences
(Chandigarh).
CHINA

3. China is well known for …
 Technical advancement
 The Great wall of china
 Large population
 Giant pandas
 Jacky chen and Bruce lee
 One children per family
 Mark zuckerberg’s Gf

4. China - An Introduction
 An ancient and modern
civilization
 A rich and complex history
 Superb cultural legacy
 The most populous nation
on Earth
 Many nationalities
 Socialist government
 Very diverse landscapes

5. China - History
 Origins of Chinese
Kingdom lost in mythology
 First Emperor in Many
Imperial Dynasties were
chiness:
Xin, Han, Ming, Tang, Manc
hu
 The Great Wall of china is
the biggest wall of the world
 Republic founded in1949

6. China - Culture
 Religions - Buddhism,
Taoism, Islam
 Art - painting, sculpture,
furniture, fabrics etc.
 Philosophy - Confucian
thought, etc.
 Music - Beijing Opera
 Kites - Wei Fang kite
making tradition

7. Who Are the Chinese?
 The most populous nation
on earth
 Population = 1.3 billion
 20% of world population
 Population was only 0.5
billion in 1950
 One child per family policy
since 1979
 Most Populated Province -
Henan (92.56
million, almost twice the
UK)

8. China - Landscape
 Western area mostly
mountains, snow and desert -
very sparsely populated
 Northern edge borders the
Gobi Desert
 South-western part tropical -
dense forest
 Remaining central and eastern
zones are very diverse - river
valleys, plains, mountains.

9. China - Government
 China is governed by the
Communist Party of China
 President Hu Jintao and Prime
Minister Wen Jiabao are the
leaders of China
 The parliament currently has
25 members
 There are 22 provincial
governments, as well as 4
major cities, 5 autonomous
regions and 2 special
administrative regions

11. PESTEL ANALYSIS OF
CHINA

12. POLITICAL ENVIRONMENT
 People’s Republic of China
 Communist party of China(CPC)
 Fundamental framework of China’s political
system comprises of people’s
congresses, multi-party cooperation and
self governance
 Cooperative relations between the CPC
and other political parties are based on
principle of long term coexistence and
mutual supervision

13. ECONOMIC ENVIRONMENT
 World’s second largest economy
 GDP growth rate:-7.8% (2012 estimate)
 FDI accounts for 27% of the value added
production,4.1% of the national tax
revenue, and 58% of the foreign trade
 Inflation rate:-2.7% as on 9-07-2013
 Unemployment rate:-4.10%
 Population below poverty line:-13.4%

14. • Acc to 2010 estimate labor force in China
was around 815.3 million, exports were
around $1.581 trillion and imports were
around $1.327 trillion

15. SOCIAL ENVIRONMENT
 Population of china as on 22-09-2013
is 1,360,070,000
 Highly skewed sex ratio:117.8 boys for
every 100 girls
 Literacy rate:-95.9%

16. TECHNOLOGICAL
ENVIRONMENT
 INNCH set sail on the world’s first and only nuclear
informatization forum--Nuclear Information Technology China
Forum 2013 (NITF2013) which will gather around 150 senior
experts and executives to analyze the trend of China’s
nuclear informatization industry. NITF2013 will target to
provide the high-end platform to promote the communication
between government, NPP & Nuclear IT companies in and
aboard.
 On 18th April 2013 China Environmental Technology Acquired
Shenzhen Huaxin Zhongshui Protection Engineering
Company Limited to expand water projects.
 On 13th July 2012 China Environmental Technology Signed
Strategic Co-operation Agreement with China Railway 25th
Bureau Group Co., Ltd to Mutually Diversify Business.

17. CONTD.....
 Internet users:-718 million (2013)
 China Telecom alone serves 55 million broadband
subscribers
 Tianhe-1A world’s fastest supercomputer developed in 2010.
 China has been pioneering the deployment of pebble bed
nuclear reactors, which run cooler and safer than
conventional nuclear reactors.
 In 2011, China unveiled a prototype train capable of reaching
speeds of 310 mph (500 km/h), the first ultra-high-speed train
developed solely by its domestic railway industry.
 In September 2011, the first Chinese space station
module, Tiangong- 1, was successfully launched, marking the
first step in a decade-long project to construct a large
manned space station.
 made its first attempt at the robotic exploration of Mars in
November 2011.
 China conducted a successful test of an anti-satellite missile.

18. ENVIRONMENTAL FACTORS
 China has a variety of forest types. Hardwoods such as teak
and mahogany are cultivated as commercial crops, as are
pine and other softwoods. Bamboo is a very fast growing
plant which can grow up to one metre a day. An interesting
tree found in China is the ginkgo or maidenhair tree which is
used in Chinese medicine. It is one of the worlds earliest
surviving plant species and first grew 160 million years ago.
 China has a wide variety of wildlife: tigers, snow
leopards, monkeys, yaks and giant pandas. The birdlife
includes peacocks, parrots, cranes and storks. Cormorants
are used by some fishermen on the rivers to catch fish for
them.
 Chinas natural environment has been adversely affected by
human intervention in a number of ways. Deforestation has
gone on for many years. In 1978 steps were taken to protect
the environment.
 There is now a programme of tree planting and a national
conservation organization looks at the consequences for the
environment of using pesticides and chemicals

19. CONTD....
 On 26th July 2012 China Environmental
Technology Signed Co-operation Agreement
with The Municipal Government of Zixing City
in Hunan to Mutually Develop the
Environmental Protection Project of the
Dongjiang Lake.
 On 29th April 2013 China Environmental
Technology Signed a Contract with the Beijing
Water Authority in Relation to the Project of
Empress Xiao River.

20. LEGAL ENVIRONMENT
 Retail outlets in urban areas of China
normally open from 09.00 till
18.00, trading 7 days a week and 365
days a year including public holidays as
they are considered to be peak trading
times
 China has a number mandatory laws
regarding foreign business entering the
country although access was made
complex in 2004 when China gained full
membership to the World Trade

22. China’s Free Trade Agreement Strategies
• Trans-Pacific Partnership (TPP)
• has caused China some disquiet
• The agreement was signed among four
countries
(Brunei, Chile, New Zealand and
Singapore
• five additional countries
(Australia, Malaysia,
Peru, the United States, and
Vietnam) began negotiations to
join the group
• The TPP agenda is
considered by many a
force that could rip apart
East Asian economic
integration.
• The most important
strategy for China is to
actively push its own FTAs.
• China is also
considering joining TPP,
although it is still cautious
about this option.
• It will be difficult, if not
impossible, for China’s
FTA strategy to reach
its political aim.

23. • The Chinese Government deems Free Trade Agreements (FTAs) as a new
platform to further opening up to the outside and speeding up domestic
reforms
• An effective approach to integrate into global economy and strengthen
economic cooperation with other economies
• As well as particularly an important supplement to the multilateral trading
system.
• Currently, China has 14 FTA partners comprising of 31 economies, among
which 8 Agreements have been signed already.

24. Dividing China’s FTA into 4 parts:-
China's Free Trade Agreements
Free Trade Agreements under Negotiation
Free Trade Agreements under Consideration
Preferential Trade Agreement

25. China's Free Trade Agreements
• China-ASEAN FTA
• China-Pakistan FTA
• China-Chile FTA
• China-New Zealand FTA
• China-Singapore FTA
• China-Peru FTA
• Mainland and Hong Kong Closer Economic and
• Partnership Arrangement
• China-Costa Rica FTA
China’s Free Trade Agreements under
Negotiation
• China-GCC(Gulf Cooperation Council) FTA
• China-Australia FTA
• China-Iceland FTA
• China-Norway FTA
• China-SACU(Southern African Customs Union) FTA

26. China’s Free Trade Agreements under
Consideration
• China-India Regional Trade Arrangement Joint Feasibility Study
• China-Korea FTA Joint Feasibility Study
• China-Japan-Korea Joint Study
• China-Switzerland FTA Joint Study
China’s Preferential Trade Agreement
• Asia-Pacific Trade Agreement

27. CHINA-ASEAN FTA
• The leaders of both China and ASEAN Member (AMS) signed the
Framework Agreement on China-ASEAN Comprehensive Economic
Cooperation at the sixth China-ASEAN Summit in November 2002.
• In January 2007, the two parties signed the Agreement on Trade in
Services, which entered into effect in July of the same year.
• In August 2009, the two parties signed the Agreement on Investment.
• The establishment of China-ASEAN free trade area enhances the close
economic and trade relations between the two parties, and also contributes
to the economic development of Asia and the world at large.

28. 28
Impact of Chinese Goods
on Indian Economy

29. No way to escape the
DRAGON!!!
 Using the big Indian market – to dump their
products
 Killing the Indian units
Example
Last year during Diwali, china made crackers were sold in
the Indian market. These crackers reportedly contained
Sulphur. Sulphur is more harmful than Nitrate. Since the
Chinese crackers were cheaper than the Indian crackers,
so they managed to attract innocent Indian lot. As a result
the Indian cracker industry saw a decline in the revenue.
29

30. No way to escape the
DRAGON!!!
 Due to cheaper prices of Chinese products
– popular among the Indian masses
 Negative effect on our own manufacturing
units
For instance
Data reveals that 60% of the Industrial units in the
region of Thane and Bhivandi near Mumbai have
been closed down. (Indian cottage industries i.e.
handicraft)
30

31. No way to escape the DRAGON!!!
 Due to its cheap labor
◦ China offers low – priced imports
 Also affected Indian export market
◦ China replaced Indian goods in the foreign
market
◦ Due to being cheaply produced
 Fact to be noted:
◦ China manufactures both low as well as high
quality products
◦ Eg: the manufacturing of Apple iPhone, Nokia
Handset etc.
31

32. Made in China, Sold in
India
 China is ruling in many markets
 India is the hub of diverse business
opportunities
◦ Slowly yet steadily, Chinese products are dominating
similar Indian products
◦ Eg: Electronics, crackers, statues, apparels, etc
◦ Eg: In 2010, flooding of the Indian markets with Chinese
made statues - welcomed with open arms by the Indian
consumers
32

33. CAN ANYONE GUESS
WHICH BRAND IS THIS?
HINT:- COMES WITH BBM
33

34. ITS BlueBerry not BlackBerry
 Same design
 Same colour shade
 May be having advance features
 Very cheap
 Same has been done to various
products and brand
◦ E.g.: Apple iPhone
34

35. Positive Aspects Negative Aspects
 Relatively Cheaper than
the regular/known brands
 Advanced features
 Affordability, common
man can easily purchase
 Widely available
 Unsafe products
 Non long-lasting
 Resulted in closure of
many businesses
 Outflow of capital
 Increased in Imports &
decreased in Exports

36. Trade
Relations

37. Trade Relations
 India considers China its largest trading partner
 China & India export and import from each other in a huge
quantity
 India scores only in resource based exports & low technology
based exports
 China is no. 1 in low technology product, also scores well in
medium & high technology
BASIS INDIA CHINA
Export of Goods &
Services (% of GDP)
21% Over 40%
Imports of Goods and
Services (% of GDP)
24% Over 30%

38. Trade Analysis
Years India’s
Exports to
China
India’s
Imports
from China
Trade
Balance
Total Trade
1999 825.74 1287.18 -461.44 2112.92
2000 1353.44 1527.51 -174.07 2880.95
2001 1699.06 2057.85 -358.79 3756.91
2002 2273.82 2779.14 -505.32 5052.96
2003 4251.32 4004.50 246.82 8255.82
2004 7677.98 5994.59 1733.39 13622.57
38
India’s exports to China in 2003 and 2004 were phenomenally high due
to a surge in exports of steel. This can be attributed to a record growth
in the iron and steel sector in India during this year.

39. List of Imports by India from
China
 Electrical Machinery (47%)
 Organic Chemicals and Inorganic Chemicals
 Iron And Steel, Iron/Steel Products
 Rare Earth Metals
 Fertilizers
 Impregnated Text Fabrics
 Manmade Filament, Fabric
 Silk; Silk Yarn, Fabric
 Vehicles
 Mineral Fuel, Oil
 Aluminum etc
39

40. List of Import by China from
India
 Ores, Slag, Ash
 Metals
 Organic Chemicals Salt; Sulphur; Earth, Stone
 Inorganic Chemicals; Rare Earth Metals
 Cotton and Yarn, Fabric
 Copper and Articles Thereof
 Hides And Skins
 Artificial Flowers, Feathers
 Tanning, Dye, Paint, Putty
 Precious Stones
 Fish And Seafood
 Plastic
40

41. Companies
 Indian companies in China:
◦ Reliance Industries
◦ Ashok Leyland
◦ Adani Power Limited
◦ Bank of India
 Chinese companies in India:
◦ Lenovo
◦ Haier
◦ Industrial Bank
41

42. BUT
Senior Vice President and Chief Economist,World Bank
Professor of Economics and C Marks Professor, Cornell
University

43. 43

44. Chinese Business
Practices & Etiquette
 A nod or slight bow is also a widely used greeting
 Avoid using physical contact, other than a
handshake, when greeting a new contact
 In China the surname comes before the first name
 For business purposes it is appropriate to address a
Chinese person by their business title and surname
(i.e. President Li)
 Never underestimate the importance of the
relationship building process, as the Chinese prefer
to do business only with people they know
 Maintain professionalism and formality at all times

45.  Building relationships involves exchanging of gifts
and favors; always reciprocate gifts and favours as
appropriate
 Meetings are very formal and must be scheduled in
advance
 Arriving late is very insulting Be sure to arrive on time
or early
 Meetings will begin with small talk. Keep the
conversation positive when speaking about any
experiences in China and avoid politics
 Seating will be in descending order of rank with
senior people sitting opposite each other
 The Chinese will not say “no” directly, an answer
other than yes could mean no
 If you are planning to discuss legal or very technical
topics, bringing an interpreter is highly recommended

46. Conclusion
 India & China together constitute 1/3rd of the total
world population and 1/4th of world’s skilled labour
force.
 They are two future economies to TRADE with!
 For sustainable trade relationship between the two
nations, its imperative that they move from
competition to cooperation.
 As 20th century was US century, 21st century would
be Asian century where the two nations would lead
SO, IT COULD BE CHINA & INDIA IN THE FUTURE,
NOT CHINA v/s INDIA
46