Get the FLASH PLAYER to view this magazine:

Get Adobe Flash player

- or -

View as HTML version

www.psi-network.de PSI Journal 5/2016 ily emphasized. The economic transformation which has been taking place in China for some time was as predictable as it was necessary. Ever since March 2013, when the fifth generation of leaders in Beijing came to power, it has been conceded that the previous development model is not sustainable. For the three decade-long economic miracle, which most recently culminated in double-digit growth, has generated not only economic problems but also serious social and environmental problems which will continue to worsen. STILL NO MARKET ECONOMY By joining the World Trade Organization in 2001, China’s economic growth was further boosted: Trade restrictions were partly removed and, in turn, foreign markets were allowed to be developed. As a result, China‘s foreign trade has increased more than tenfold in the last 12 years. Many countries have benefited from the extraordinary dynamism of the Chinese economy and do so to this day because the sheer size of the Chinese economy ensures considerable growth momentum. Joining the WHO was a clear sign of the opening and re-integration of the country into the global economy. However, not all expectations of the international community have been met, as many economic sectors are still under state control and the necessary reforms are still to be implemented. According to European assessments, China meets only a fraction of the requirements to be recognized as a market economy. In addition to the equal treatment of companies and the reduction of state intervention, the protection of intellectual and material property are among the demands that are being too hesitantly implemented. The Foreign Office has criticized that too little has happened, particularly in key areas such as the restructuring of state-owned enterprises and fiscal reforms. TRADING PARTNER CHINA The EU is the largest trading partner of China; Germany is the leading economic partner in Europe. Conversely, China is Germany’s third most important trading part- ner worldwide. These figures underline the success of a German-Chinese economic cooperation which has continuously developed for over 35 years. According to the German Chamber of Commerce in Beijing, more than 5,200 German companies are actively operating in China, and are responsible for more than one million jobs. Since 1990, the trade volume between Germany and China has doubled almost every five years. German investments in China also rose steadily to around 50 billion euros in 2015. With a share of five per cent of German exports, China is certainly an important partner for Germany, but not a bluechip trading partner. In 2015, German exports to China fell for the first time in 10 years; China‘s exports also slumped. The European Chamber of Commerce has spoken of „disturbing, fundamental problems.“ One thing is certain: The golden age of China‘s economy is coming to an end. NECESSARY STRUCTURAL CHANGE Horst Löchel, Professor of Economics, MBA Director at the Frankfurt School of Finance 9

Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
Page 11
Page 12
Page 13
Page 14
Page 15
Page 16
Page 17
Page 18
Page 19
Page 20
Page 21
Page 22
Page 23
Page 24
Page 25
Page 26
Page 27
Page 28
Page 29
Page 30
Page 31
Page 32
Page 33
Page 34
Page 35
Page 36
Page 37
Page 38
Page 39
Page 40
Page 41
Page 42
Page 43
Page 44
Page 45
Page 46
Page 47
Page 48
Page 49
Page 50
Page 51
Page 52
Page 53
Page 54
Page 55
Page 56
Page 57
Page 58
Page 59
Page 60
Page 61
Page 62
Page 63
Page 64
Page 65
Page 66
Page 67
Page 68
Page 69
Page 70
Page 71
Page 72
Page 73
Page 74
Page 75
Page 76
Page 77
Page 78
Page 79
Page 80
Page 81
Page 82
Page 83
Page 84
Page 85
Page 86
Page 87
Page 88
Page 89
Page 90
Page 91
Page 92
Page 93
Page 94
Page 95
Page 96
Page 97
Page 98
Page 99
Page 100
Page 101
Page 102