The history of China’s statehood formation and development achieves several millennia, its nation has made a significant contribution into both material and spiritual culture of humanity throughout the world. Having in possession huge territories, essential labor and material resources and potentially large internal commerce, The Heavenly Empire has nearly all suppositions for creating integral, well-rounded economy, which is able to meet the necessary goods’ needs of the country.
Currently, China enters the top ten leading countries in the world by GDP sizes and its economic potential. The growing role in the world’s economy of the Asia Pacific region even more enhances the economic potential of the PRC.
Main Characteristics of the Economy of China
All positive changes in the country’s economy can be written off to the qualified reform in 1970-1990. Herewith, they were carried out taking into consideration national peculiarities. Thus, when moving to the socialist regime, a course for eradicate poverty was held (unlike other communist states). This meant that during developed communism, the life level should not be lower than during capitalism. That is why all changes were made taking into account that they were useful for ordinary citizens first of all, and provided them with everything necessary for life. Besides that, economic reforms were conducted not in a rush but smoothly, so there were no sharp spikes, and transition to the market was gradual.
The state plays a great role in the economy: it is accounted for about 60%. Other 40% belong to private capital. Moreover, the country has developed fiscal control authorities, so budgetary replenishment at the expense of tax is carried out quite successfully.
Due to the large population, the domestic market is very developed, and because the welfare of the population is constantly growing, the purchasing power also improves. Export and import are also stably growing: China’s economy is actively interacting with economies of other countries, and is becoming integrated with them in many productive and research spheres, so rationally develops and constantly renovates. In addition, China has many free economic zones, which attract investments. Thanks to this, there is a quick development of science and technology in the country.
The state encourages and contributes to the spreading of the national currency, as well as prevents its exchanging for dollars. This reduces threat of influence of global financial crises in a particular way.
A characteristic feature of the economy of the PRC is that significant quantity of ethnic Chinese (and immigrants) live in various parts of the world. They create closed groups, which at the same time are economically and socially connected with the native land, and their capital does not go by it. Especially it relates to powerful businesspeople who are of China descent and who live in other countries.
Chinese investments in Ukraine
In 2016, in port logistic sector, Chinese corporation COFCO Agri launched a transshipping complex of grain and oilseed crops with annual capacity of 2.5 million tons in Mykolaiv Sea Commercial Port. The investment project costed $75 million. COFCO Agri in Ukraine also controls several elevators and oil extraction plant. Over the whole period of existence in the Ukrainian market, the company has invested over $200 million.
CNBM company is one of the largest investors in ecological energy of Ukraine and owns many powerful solar electro stations plants in the Odessa and Mykolaiv regions. Management of the company informs that there are investments of over $1 billion in total.
The Xinwei Group, which is one of the leading telecommunication companies of the PRC in the world, was opened in Kyiv in 2014. Ukrainian telecommunication operator Prosat creates the network of mobile broadband multimedia communication of 4th generation (national scale) on the basis of McWiLL® technologies from the Xinwei Group. 150 installed base stations covered the capital of Ukraine and significant territory from Kharkiv to Mariupol, the bandwidth coverage goes through four eastern regions of the country.
Beijing Skyrizon Aviation Industry Investment Co Ltd and Ukrainian company Motor Sich created a common venture based in China. Construction of the plant for aircraft engines production and maintenance was started in Chungking. The company announced the possibility of licensed manufacturing by common venture of D-136, MS-500V and TV3-117VMA-SBM1V helicopter engines, as well as engines for general airplanes AI-450C, turbojets D436-148FM and D-18T engines. The investments amount is not disclosed yet. However, taking into account that the Russian target market is now limited, a new and prospective market appeared to be convenient. Beijing Skyrizon finances manufacture launching, and Ukrainian side provides technologies. Herewith, Chinese have already invested $100 million in the modernization of the Motor Sich production capacities in Ukraine and the investment agreement in the amount of $150 million has been already signed into the center of advanced development and pilot production.
In addition to strong investments, there are several small capital outlays of Chinese investors into the economy of Ukraine. Thus, in 2017, Bohai Commodity Exchange Co. Ltd. (BOCE), the biggest spot commodity exchange of the PRC, purchased block of stock (99.9 %) of Ukrainian Bank for Reconstruction and Development from the State Property Fund of Ukraine, which has been in the state’s property, at a starting price of 82.8 million UAH.
The Chinese have also considerable interest in Ukrainian agro sector. Starting from 2013, an agricultural company Fanda is conducting its activities in Naumivka village, Chernihiv region, founder of which is the large Chinese Agricultural State Corporation HuanFan Qu.
Development prospects of bilateral relations
China’s interest in Ukraine is growing. This is proved by the strengthening of economic relations in recent years, the presence of large Chinese companies in Ukraine – COFCO, CNNC, CCEC, China Harbor Engineering Company, Huawei.
Commodity exchange between countries is also gradually increasing, for example, for January-November 2018, it grew on $1.1 billion compared to the whole 2017, and was $8.82 billion.
Chinese companies were not afraid to invest in Ukraine even in difficult social and political period for us. This instills confidence that together with stabilization of the situation in the country, investments flow will continue accelerating. The PRC notices a great potential of the Ukrainian market. Currently, due to the trade agreements between Ukraine and the EU, opportunities are only increasing. Proximity to the European market and the opportunity to expand its production sites on the Ukrainian territory attract the economic interest of The Heavenly Empire, what is working on Ukraine’s favor.
China’s initiative One Belt One Road predicts the development of trade relations between China and Europe. The ambassador of the People’s Republic of China to Ukraine Du Wei mentioned that this project is inconceivable without Ukraine. Projects in the frames of the Silk Road hereafter may help Ukraine avoid the transit restrictions of Russia to the countries of Central Asia.
Many experts assert that further cooperation development between Ukraine and China will contribute to decreasing of the Russian impact on the economy of Ukraine, and that attraction of the Chinese capital will reduce escalation risks of military actions by the Russian Federation and at the same time will increase the geostrategic value of Ukraine.
Read the news in our app!
Google Play: https://play.google.com/store/apps/details?id=ua.com.grodas.ldaily&hl=ru
App Store: https://itunes.apple.com/us/app/ldail/?p=89234y/id1354384907?l=uk&ls=1&mt=8
According to a report by the US Department of Commerce on Thursday, the fall in gross domestic product (GDP) for the period from April to June (2nd quarter) amounted to 32.9% compared with the same value last year. Economists have noted that it is the strongest decrease since the government started to keep records in […]
In the second quarter of 2020, China’s economy grew after a historic downturn in the previous three months. This was reported by Interfax with reference to the State Statistical Office of China on Thursday, June 16. Thus, China’s GDP in April-June increased by 3.2% compared to the same period last year. The recovery was caused […]
Singapore’s gross domestic product in the second quarter of 2020 fell by 41.2% compared to the previous quarter. This is evidenced by preliminary national statistics published on Tuesday, July 14. The volume of industrial production decreased by 23.1%, while construction fell by 95.6%, and the decline in services amounted to 37.7%. The results were a […]
The territory of the People’s Republic of China occupies the third place by area (after Russia and Canada, then the USA follows the PRC). However, it is in the first place in terms of population of more than 1.404 billion, leaving behind India (more than 1.377 billion) and the USA (more than 331 million). There […]
Structure of BMW in the USA is accused by regulatory authorities in violation of Federal safety regulations, and the late withdrawal that do not comply with statutory safety systems. Mini Cooper cars, which are produced by BMW, failed the crash test; the cars were not relevant minimum safety standards. The company had to warn its […]Next
Marriott is buying Starwood to make the largest hotel company in the world. Together, the companies will operate or franchise 5,500 hotels with a total of 1.1 million rooms. The company will span 100 countries. Marriott International (MAR) and Starwood Hotels & Resorts Worldwide (HOT) announced the $12.2 billion deal on Monday. Starwood brands include W Hotels, St. Regis, Westin and […]Next
Ant Financial company within the framework of a public company Alibaba (China), announced about the final stage of the USA financial company asset acquisition procedures MoneyGram International, specializing in international trade transactions online, as reported Inventure. The Chinese side intends to complete the transaction in the third or fourth quarters of 2017, after the approval […]Next
Kyiv bank “Piraeus Bank ICB” asks the Commercial Court of Kirovograd region to recover from the “Creative”company, which entering into the “Creative Group”, $ 15,629,000 of the loan debt, – reports the “ProAgro”. This is stated in the bench ruling of the court from January 27, 2016. “Piraeus Bank ICB” filed a lawsuit to recover […]Next
The supervisory board of Vinnitsafarmation in the press release reported:” Vinnitsafarmation which owns ‘Bazhayemo zdorovya’ network of pharmacies , intends to reacquire 18 million of common shares PJSC ‘Vinnitsafarmatsyia’ intends to redeem 18 million of common nominal shares”. PJSC ‘Vinnitsafarmatsyi’a plans to make the relevant decision at extraordinary general shareholder meeting which will take place […]Next
Representatives of the Russian corporation Hotel Development reported the signing of an agreement for the sale of the hotel Radisson Blu Hotel Kiev Podol, previously owned by foreign shareholders. Estimated value of the transaction is approximately $ 10 million. With regard to information about the new owner of the four-star hotel in the prestigious district […]Next
Ferrari and Lamborghini announced the termination of official deliveries of its supercars on the territory of Ukraine in 2016 due to the unstable situation in the local market. This was announced by Victor Postelnikov the “Vipos” CEO who sell these models. “Because of the situation in the country, our market is not ready today to […]Next
Unfortunately, most businesses in our country learn about foreign investments from the media but not directly from their own production facilities. Despite the recent positive changes in the state, we still can’t talk about a high or at least a satisfactory level of foreign direct investment in the Ukrainian economy. FOREIGN DIRECT INVESTMENT According to […]Next
Shares of Advanced Micro Devices, increased on 47.4% since the beginning of the year, rose on 10% after the announcement of the financial results of the 2nd quarter, which ended on June 27, and the publication of optimistic forecasts, despite the pandemic. The report was preceded by a sharp rise in shares of AMD after […]Next
According to the CEO of Astarta, Victor Ivanchik, the investment plan has already been approved. The money also will be spent on the modernization of agricultural production and technology, modernization of sugar factories. The total investment of agricultural holding Astarta for 2016 remains at the level of 2015 and amounts to € 24 million, 60% […]Next
The new draft law on telecommunications in UK suggests that companies, mobile operators, Internet – companies will have to keep the data about activity of their customers online for one year, and this will enable special services to require this data if necessary and to read them. According to the information of the British Government, […]Next
Since the end of 2016 year it has been observed in Ukraine a negative surge of activity among sole proprietorships. It is talking about a mass liquidation of FOP associated with the innovations of the taxation system in Ukraine. Thus, according to the legislation since January 1st of this year, every natural persons-entrepreneurs are undertaken […]Next
The “Agrotrade” Company Group renegotiated long-term agreements with the European Bank for Reconstruction and Development (EBRD) for the next 5 years, – said the press service of the company. According to the report, it will be key to the success of the Group companies, to improve the investment climate in the region, economic development and […]Next
In September Egyptian billionaire Naguib Sawiris said in his twitter about of his thoughts of ??buying the island somewhere in Greece or in Italy, to settle migrants and refugees there. This proposal was very popular in twitter, so Sawiris, who is one of the ten richest people in Africa, whose fortune is estimated at $ […]Next
In 2013, which experts call the reference, the volume of the pharmaceutical market of Ukraine was about 3.3 billion US dollars. The Pharmaceutical market at that time was one of the fastest growing and took the second place among the CIS countries. According to the consulting company BakerTilly, on average, the market growth rate was […]Next
In May Ukraine produced 2.3 million tons of the steel. This figure is to 5.7% higher than was in the same period in 2015. This is confirmed by the monthly data of the international organization World Steel Association. It is a non-profit organisation with its headquarters in Brussels, Belgium and a second office in Beijing, China, […]Next