...October 2011 China And Africa. Zambia - China: Trade, Politics, and Development. Scope : In little over three decades, the Bilateral relationship between Zambia and the Peoples Republic of China has been cemented with a stronghold foundation, but then again, as interests have been reciprocated allying both over time, politics and economic imbalance has caused trade and development to be somewhat controversial in their Relationship. This paper will also look at the historical and contemporary ties between the two economies. In the Late 1960’s, shortly after Zambia’s Independence, China constructed a 2000km railway linking Zambia to Tanzania, in order to provide an alternate route to seaport trade for Zambia. This gesture, showed China’s interest in building ties with the Southern African State, and it also showed, that China could be a dependable ally of the Zambia. Zambia in turn also reciprocated, supporting the One China policy and also co- sponsoring China’s bid in the UN Security Council. Since then, both states have become affiliates with the sole purpose of steadfast development through trade and aid. After time and effort have been put into building political ties, investments made among allied states tend to incline economic gains and this gives birth to a new type of partnership among states. Chinese Investments in the Zambia can be dated back to the period of Zambia’s Post-independence, this was...
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...The rise of China and the impact it will have is the subject of much speculation. In his paper, “Will China’s Rise Lead to War?” Glaser (2011) looks at this issue. Glaser contends that the outcome of China-U.S. relations is not predetermined to be a repetition of the U.S.-Soviet Cold War or even a hegemonic war as per the standard realist’s view, nor does he agree with the liberal view that the current international order will accept China’s rise peacefully. Glaser’s thesis is that major confrontation can be avoided; he argues that the forces that could create a hegemonic conflict between the two powers are weak; that the greatest dangers will be created through “secondary disputes.” Glaser also contends that the US will have to make concessions alliances to China regarding U.S. to avoid a major clash and that the way the two nation’s leaders handle those issues will determine the eventual outcome. To the world China is an unknown actor upon the world stage, a communist regime that until 1980’s was for the greater part a closed country. Today as a growing world power, both economically and militarily China like any nation requires respect, security and economic growth and development for her people. In this endeavor China has created something of a security dilemma as no one really knows what role China will seek, what she will demand from those nations around her, nor the consequences of these desires. John Herz (1950) describes a security dilemma as being when a state...
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...Urban Housing Markets in China Yongzhou Hou Stockholm 2009 Report 88 Building and Real Estate Economics Department of Real Estate and Construction Management Royal Institute of Technology Kungliga Tekniska Högskolan © Yongzhou Hou 2009 Royal Institute of Technology (KTH) Building & Real Estate Economics Department of Real Estate and Construction Management SE – 100 44 Stockholm Printed by Tryck & Media, Universitetsservice US-AB, Stockholm ISSN 1104-4101 ISRN KTH/BFE/M-09/88-SE ISBN 978-91-977302-5-9 Abstract This thesis focuses on problems of prices and risks in the housing markets of urban China. What drives the dynamics of housing prices across regions is not only of great interest for academic researchers but also of first importance for policy makers. It is also interesting to pay attention to the issue of housing bubbles at a city level and risk allocations from an institutional view. To address the issues, the thesis applies both qualitative and econometric approaches in analyzing the urban housing markets of China. The first paper reviews articles mainly published in Chinese core journals. The existing studies are mainly concerned with such six topics as institutions, policy, land, finance, price and market. The first three topics involve the public housing allocation system reform, such fiscal and monetary tools as tax and interest rate, and the land reserve system. The housing finance treats such subjects of mortgages, bubbles and financial systems...
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...a delicate needle? On Jan 28th 2011, China finally began to implement its property tax policy in two trial cities, Shanghai and Chongqing. The new tax policy was expected to be carried out through the whole year and to successfully cool the overheated real-estate market. However, the result seems complex and confusing. An Overview of the Property Tax Policy Property tax policy is different in Shanghai and Chongqing, varying in tax rate and charging targets. Property tax in Shanghai aims at newly-bought houses, while that of Chongqing aims at high-class apartments. However, they both impose restrictions on non-local residents and their tax rates are both pretty low (See Exhibit 1). Compared with property tax policy of other countries, China’s tax trial is far from mature. Its tax rate stays around 1%, while Hong Kong is 17% and Japan is 10%. Besides, the current trial policy only covers a small proportion of the whole house market. Goals of the Property Tax Trial The short-term goal of the property tax trial is to depress the rapid growth of housing prices through two paths. First, by increasing the holding cost of investment houses and prolonging the returning period, property tax would put financial pressure on real-estate speculators and therefore depress the demand, which would decrease housing prices. Second, sales of investment houses would also increase the supply of the real-estate market, which would also decrease housing prices. The ultimate goal of the property...
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...Applicable Housing in China Abstract The paper is about the research of applicable housing in China. It explains the definition of the applicable housing. There are some data of the research and the main problems that this kind of house meet in China at present. I also will talk about my opinion about whether applicable housing should be continued and how to make the applicable housing really help the low-income families. Applicable Housing is very special in Chinese real estate transactions. It is a government policy that provides the low-income families a house in a low price so that everyone can live in their own house. It began in 1994. It means as the development of Chinese real estate economy, there are still some Chinese can’t buy houses even though more and more Chinese can afford to buy their own house. Wealth is not evenly distributed in China. As one online dictionary said, establishing the housing supply system mainly with the economical and applicable housing was fit for the market economy of socialist and current circumstance of China. The target of applicable housing is very good. But the fact is that it works not very well. Some real estate developers haven’t built and sold the building that meet the standards of Applicable Housing while they enjoy the treatment of this government policy. As the result, here comes many problems, such as the price is much higher, the buyer is not the poor and so on. Here are some data from the research about applicable...
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...statement: The soaring property prices in China’s coastline and major cities such as Beijing, Shanghai, Shenzhen, and Dalian has formed the biggest bubbles in the real estate market in the decade. However, we do not see any slowdown in these cities. As of today, the property prices seem to keep on growing forever. Will China’s housing bubble pop? Compare the housing bubbles in the United States with that in China * A brief background information about the housing market in US before it crashed down * Elaborate on China’s current housing market and see how close is it to the housing market condition in the US Different views on China’s housing bubble * Optimists think that even if the housing market crashes down in the near future, it will not create another global financial disaster * Some think that the bubble will never crash under the guidance of our communist party * Some debate on the implementation of the new policies Conclusion: China and the world have to learn a lesson, and try to maintain a healthy, long-term economic sustainability. Will China’s housing bubble pop? Is it just merely a matter of time when the housing market comes to a crash, or will it not at all? Should a burst of the bubbles cause another worldwide economic downturn and probably a global recession? These are probably the most heated debates by the economists of the world today. The soaring property prices in China’s coastline and major cities such as Beijing, Shanghai,...
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...Front. Econ. China 2010, 5(1): 25–51 DOI 10.1007/s11459-010-0002-7 RESEARCH ARTICLE Huayi Yu China’s House Price: Affected by Economic Fundamentals or Real Estate Policy? © Higher Education Press and Springer-Verlag 2010 Abstract Many theory and empirical literature conclude that house price can reflect economic fundamentals in the long-term. However, by using China’s panel data of 35 main cities stretching from 1998 to 2007, we find that there is no stable relationship between house price and economic fundamentals. House price has deviated upward from the economic fundamentals since government started macro-control of the real estate market. We consider that the mechanism between the house price and economic fundamentals is distorted by China’s real estate policy, especially its land policy. Meanwhile the policy itself is an important factor in explaining the changes of China’s house price. Then we estimate the dynamic panel data model on house price and the variables which are controlled by real estate policy. The result shows: land supply has negative effects on house price; financial mortgages for real estate have positive effects on house price; and the area of housing sold and the area of vacant housing, which reflects the supply and demand of the housing market, has negative effects on house price. We also find some differences in house price influence factor between eastern and mid-western cities. Finally, we propose policy suggestions according to the empirical...
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...The Quest of Housing in China “Do you have a house?” This has become a common question for young couples deciding whether to get married in China. As for Shanghai, the daily struggle of living in China's financial hub finds vivid expression in the hit TV drama “Dwelling Narrowness”. In the drama, two sisters regard having a house by themselves as the basic rule to live in Shanghai, and finally, they find a house, but lose happiness. A government official named Song Siming in the drama is punished because of the beneficial relationship with a real estate agent. The housing prices in China have climbed to an incredible level, especially in some big cities, such as Shanghai, and Beijing since 2000. An analysis of the drama "Dwelling Narrowness", which highlights Chinese people's quest to find adequate housing, a comparison of China's housing situation before and after the year 2000, and an understanding of the current housing market show that the Chinese government should do something effective to solve this tough problem, such as increase bank loan rate and tax on the second house, or else the housing issue will threaten the way of China's development. Housing situation before the year 2000 is different from that after 2000. Before the year 2000, houses are just relative expensive than other things, but most people can buy one through their hard work. As I remembered, nearly everyone had his or her own house at that time; so people did not think that house could become...
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...‘Cheap House Is Not Allowed’ Will China’s real estate bubble burst? Since the onset of the global financial crisis in 2007, China has faced some critical problems linked with the excess of liquidity in its internal market, due to the stimulus plan launched by the Government to soften the effects of the crisis. As a result China is now fighting against a high rate of inflation (especially food prices) and a high cost of property. While the inflation issue has been partially solved in the first term of this year, the fear for the real-estate market trend is still alive. This essay aims to critically analyse the real estate market in China, which is also strictly linked with the health of this country’s economy, by examining this issue from two different perspectives: from the point of view of those scholars who believe that the Chinese bubble will burst and from the point of view of those who believe that the Chinese market is still safe. First of all the essay will give the historical and economic background of the price rises in the Chinese real estate market, from the birth of this important economic sector to the global financial crisis. Secondly, in the core part, this paper will explain the main theory regarding the possibility of the real estate bubble burst and the counter argument. To better understand the actual situation in China there will be also a short comparison with the burst of the American bubble in 2007. In the conclusive paragraph some predictions...
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...Markets in action YUN TANG 43101418 Abstract Explain how do the price elasticity of demand and the price elasticity of supply impact magnitude of the impact from market intervention. Explain the reason and the method that government intervene the market price. Analysis the Chinese governments’ intervention and the unexpected outcomes on Chinese housing market in 2008 and 2010. Keywords Price elasticity of demand Price elasticity of demand Chinese housing market Government intervention There are various ways for the government to intervene the market and the major way is to fix the price ,not setting a minimum price or setting a maximum price. Once the government fix the market price, there will be some differences both in demand and supply. When the price of a good rises , the quantity demand will fall while the quantity supply will rise, and vice versa. The price elasticity of demand and the price of elasticity can interpret the impact magnitude of the impact from market intervention. The price elasticity of demand equals percentage change in quantity demanded divides percentage change in price. The price elasticity of demand equals percentage change in quantity demanded divides percentage change in price. If we just ignore the sign and just concern about the value , the price elasticity of demand and the price elasticity of supply(as a symbol ε) can be classified into three types. When...
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... 3 3. China’s long-term Real Estate Fundamentals 4 3.1 strong gdp growth 4 3.2 rural migration to cities 4 3.3 rising middle class and strong upgrade demand 5 3.4 300 million new households in past two decades 6 3.5 limited land supply 6 4. overheating real estate market in the short-term 6 5. government steps in with tough real estate policies 9 5.1 significant increase in land supply and focus on economic housing 9 5.2 downpayment ratios and mortgage rates 9 5.3 Loan restrictions to developers 10 6. summary 10 References 11 1. Definition Real Estate A piece of land, including the air above it and the ground below it, and any buildings or structures on it. Real estate can include business and/or residential properties, and are generally sold either by a relator or directly by the individual who owns the property. In most situations in the United States, real estate is a legal designation, and is subject to legislation. Also called realty. 2. Chinese Real Estate Market 2.1 Overview about the Chinese Real Estate Market Global market volatility over the course of 2011 has pushed China's real...
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...and Sladojevic (2015) explains that when an FTA agreement is made the countries or the companies involved the deal may not be welcomed by either the parties involved but when they both work towards it the realization of the agreement it becomes easy. It is also beneficial to both the countries because it enables the citizens to move freely for the betterment of the economy (Baykitch and Sladojevic 2015). China – Australia Free Trade Agreement An example of FTA agreement is the recent china-Australian agreement. The FTA agreement is considered to be beneficial to Australia in very many ways. Ball says that given that China has a population of above 13 million it opens the market for the Australian products. China is also the second-largest economy in the world's considering that is also an important manufacturing hub for the world products. It was important for the Australia to form free trade agreement because of various factors. China is the largest trading partner to Australia (Ganz 2015). It is also a fact that the merchandise trade between Australia and China has grown tremendously with a significantly notable 18 percent increase every year for the last decade. The another major factor is the fact that over the years the investment...
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...Key words: Housing market, price, increase, decrease, the bubble in housing market Body: In 2010, from January to October, the investment of national real estate is 3.807 trillion Yuan with an increase of 36.5%, which is 105.1% of the annual investment, 3.623 trillion Yuan in 2009. In the first half of 2010, in the context of macroeconomic stabilization and recovery, the Central Government has issued a series of regulatory policies toward the housing price which increases too fast. The severity and enforcement of these control policies of the housing market are both higher than previously. The performance of the housing market 1. Consumers now are likely to wait and observe the housing market, which leads that the housing price in some cities has a small decline. There are many measures being taken by government to protect the public interest, so many people would like to wait and see how the housing market will develop. Most of them are not willing to accept the current expensive housing price, and they do not want to be entangled into the housing market after they finished their purchase with expensive cost. Therefore, the phenomenon has been speared out, and more and more people are waiting for the development of the housing market. The trades of housing market in some cities have decreased obviously. 2. The real estate is very popular as a means of investment. The domestic economy keeps increasing, at the same time the investment of the real estate becomes...
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...Introduction The relationship between the central government and local governments in China has always been an important issue. Many people believe that the public administration of big countries has a confusing problem that in the formal system, how the policies made by senior policymakers can be implemented by adaptive agents of middle and basic levels (Lin & Liu, 2000). China has the largest population in the world, the authoritarian system and the implementation gap in the field of policy increase the complexity of the problem. Since the end of 1980s, political reform took place under the leadership of Deng Xiaoping and Zhao Ziyang, a relatively free political environment existed, thus a nationwide debate of neo-authoritarianism occurred among government officials and intellectuals (Landry, 2008). The collapse of the former Soviet Union made Chinese people again worry about the weakness of central power, the intellectual field even began to doubt the long-term vitality of communist countries. Therefore, after the Tiananmen Square protests calmed down, Central government of China tightened its control over all provinces through restructuring the cadre appointment system (Brødsgaard, 2002). In this paper, the author will analyze how has the Central government asserted its control over the local governments since the 1990s, and make a critical evaluation of its effectiveness. 2. Central government’s policies on local governments since the 1990s 2.1 First stage: 1990-1993 Since the...
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...Module Title: Principles of Economics Essay Title: A part of China’s economy Contents Introduction of China economics…………………………………………..…..….4 Summary of article…………………………………………………………………...….4 Aggregate supply (AS) models……………………………………………………..…5 Aggregate demand (AD) models………………………………………………..….....6 Government policies to overcome above problems and effectiveness…………7 Conclusion…………………………………………………………………………………..8 Reference list…………………………………………………………………………………9 Introduction of China economics China’s economy is rapidly huge and expanding in these years. It is the fourth largest country in area after Russia, Canada and USA has experienced multifarious changes in its economic system which has seen it become the second largest economy in the world after USA if measured on the Purchasing Power Parity (PPP) scale. However, China still considered as an emerging economy as per capita incomes fall in the lower-middle level, China is making its presence felt in the global stage by taking big strides in opening up its economy to international trade. There are many economic problems faced by China during the years. And the inflation has become a serious challenge for the developing economy; the surplus of population and the rising unemployment rate and price. According to statistics, more than 250 million migrant workers and their dependents had removed to urban areas to find work. Hence, as China’s economy slows down due to falling external and internal...
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