EGBT

Tittle-Growing
CHINA
New Delhi Institute of
Management (NDIM)
Prepared By-
Delta Section
• Group No. – 8
• Team Members-
• Shalini Singh
• Sam Peter Georgie
• Mahesh Gupta
• Ashish Mishra
• Sahil
Which country can be called as super
power?
WHAT DO WE MEAN BY SUPER POWER?
“A super power means country that has the
capacity to dominate and influence
others throughout the world in more
than one region”.
To be super power a country needs 3 things :
1 Military
2 Economy
3 Media/Influence/Soft power
SUPER POWER COUNTRIES
1. UNITED STATES OF AMERICA

2. RUSSIA
3. CHINA
4. GERMANY
5. UNITED KINGDOM
6. FRANCE
7. JAPAN
8. ISRAEL
9. SAUDI ARABIA
10. SOUTH KOREA
The UNITED STATES OF AMERICA is a true super
power country, in the sense that it has not only
the worlds largest economy but also the greatest
worldwide military capability.
CHINA is likely to soon join the USA as super

power. If current trends continue, it will not be
too long before China has the worlds largest
economy.
INDIA due to their large population, are

considered potential superpowers, although
that status is still a long way off.
RANK COUNTRY EXPORT SALES % IN GDP TOP EXPORT PARTNER
1 CHINA $2.263 TRILLION 17% USA
2 UNITED STATES $1.546 TRILLION 7% CANADA
3 GERMANY $1.450 TRILLION 35% FRANCE
4 JAPAN $698 BILLION 13% USA
5 SOUTH KOREA 574 BILLION 38% CHINA
6 HONG KONG $550 BILLION 144% CHINA
7 FRANCE $523 BILLION 18% GERMANY
8 NETHERLAND $505 BILLION 51% GERMANY
9 ITALY $503 BILLION 24% GERMANY
10 UNITED KINGDOM $442 BILLION 16% USA
Steps Taken By China to make global connection
 Belt and Road Initiative (BRI) is a global development strategy adopted by
the Chinese government involving infrastructure development and investments in 152
countries and international organizations in Asia, Europe, Africa, the Middle East, and
the Americas.
 China signaled its intention to take the lead on climate change reduction after signing
the 2015 Paris climate agreement
 China is set to become a global green powerhouse.
 Asian Infrastructure Investment Bank (AIIB) Is a multilateral development bank that
aims to support the building of infrastructure in the Asia-Pacific region.
 It received the highest credit ratings from the three biggest rating agencies in the
world, and is seen as a potential rival to the World Bank and IMF.
Trade Deficit of other
countries with China
 The U.S. trade deficit with China was $419 billion in 2018.
 Turkey’s trade deficit with China totaled a staggering $190.6 billion in 2018
 China and the EU are ranked as the world's two largest exporters. The EU has a
trade deficit of €185 billion with China
 India's trade deficit with China was $51.08 billion in 2018
 Netherlands: $60.8 billion

 United Kingdom: $33.1 billion
 Mexico: $30.1 billion
 Vietnam: $19.9 billion
 Poland: $17.3 billion
 Bangladesh: $16.8 billion
 Spain: $16.3 billion
COUNTRIES IN CONNECTION
WHAT IS CHINA’S BRI ?
China’s BRI Refers to China’s Belt & Road Initiative.
Itis an ambitious programmed to connect Asia with Africa and Europe via land
and maritime networks.
It includes six corridors with the aim of improving regional integration,
increasing trade and stimulating economic growth.
 The project was proposed in 2013 & targeted completion date is 2049,which
coincides with the 100th anniversary of the People's Republic of China.
Its Implemented Cost Is near about US$575 billion.
If completed, BRI transport projects could reduce travel times along economic
corridors by 12%, increase trade between 2.7% and 9.7%, increase income by up
to 3.4% and lift 7.6 million people from extreme poverty.
How far China succeed in this BRI ?
 Although China introduced its dream project in 2013, it seems that the
same could turn out to be a nightmare for the dragon.
 India boycotted the conference held in 2017, as the China-Pakistan
Economic Corridor (CPEC) being built through Pakistan-occupied Kashmir
(PoK).
 Various Countries have started raising questions
about the feasibility of this project.
What is CPEC
• China–Pakistan Economic Corridor is a
collection of infrastructure projects that
are currently under construction
throughout Pakistan. Originally valued at
$46 billion, the value of CPEC projects is
worth $62 billion as of 2017.
• Status: Partly operational
• Established: 18 February 2015
• Mission statement: Special Economic
Zones, energy production, Mass transit
Why is India so much concern about CPEC?
• 1. India’s Sovereignty
• 2. Chinese Control Over Trade Via Sea
• 3. Chinese String of Pearls
• 4. Emergence of Pakistan as an Outsourcing Destination
• 5. Stronger OBOR and Chinese Dominance in Trade Leadership
Can China dominate through its economic growth
and can India
counter it?
 The pace of economic change in China has been extremely rapid since the start
of economic reforms just over 25 years ago. According to official statistics,
economic growth has averaged 9.5% over the past two decades and seems
likely to continue at that pace for some time. National income has been
doubling every eight years. Such an increase in output represents one of the
most sustained and rapid economic transformations seen in the world economy
in the past 50 years.
Components of China's Economy
• Economic Power
• China’s Changing Population
• Belt and Road Initiative
• China's Import & Export rate
• Foreign direct
investment (FDI)
Strategic Moves By India to
Counter China’s
• Improved Relationship with the

United States
• Winning the trust of ASEAN nations
• Military Exercise With Nations in
China’s Backyard
• Defense Sale to far east nations
• Building up ports in the region
NEGATIVE FACTORS PULLING BACK
CHINA
 Top lender Industrial and Commercial Bank of China (ICBC) reported
flat net profit of 58.05 billion yuan ($8.63 billion) for the fourth
quarter, the first time it has seen no growth in
 And China Construction Bank Corp, the country’s second-largest

lender, posted on Wednesday a 1 percent drop in net profit, its first
quarterly decline since the October-December 2015 quarter.
 Agricultural Bank of China Ltd (AgBank), the third-largest lender, also

posted a drop of 5.4 percent on Friday in fourth-quarter net profit,
its first quarterly decline since 2015.
 While non-performing loan (NPL) ratios edged down by 0.01

percentage points at all the so-called Big Four state banks, which also
include Bank of China Ltd (BoC), the lenders sharply increased
provisions for future bad debt to cushion themselves against a
slowdown
WHAT MAKES INDIA CONCERN ABOUT
GROWING CHINA
 TRADE DEFICITS WITH CHINA LIES AT 58 BILLION US

DOLLARS IN 2019.
 CHINAS GROWING PRESENCE IN INDIAN OCEAN A

CONCERN FOR INDIA.
 BORDER ISSUE.
 RIVERS FLOWING FROM CHINA TO INDIA.

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Tittle-Growing

1. UNITED STATES OF AMERICA

CHINA is likely to soon join the USA as super

INDIA due to their large population, are

 Netherlands: $60.8 billion

• Improved Relationship with the

 And China Construction Bank Corp, the country’s second-largest

 Agricultural Bank of China Ltd (AgBank), the third-largest lender, also

 While non-performing loan (NPL) ratios edged down by 0.01

 TRADE DEFICITS WITH CHINA LIES AT 58 BILLION US

 CHINAS GROWING PRESENCE IN INDIAN OCEAN A

 RIVERS FLOWING FROM CHINA TO INDIA.

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