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The following article was published in our article directory on September 3, 2010.
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By GDP We Can See What Kind of China

Article Category: Business Management

Author Name: xia zihui

China's GDP, attracted worldwide attention than Japan, but also suggested that China's per capita GDP only in Japan 1 / 10, so no great shakes.

In fact, if the introduction of two factors, involving many Chinese statistics and rankings have changed: First, the currency's purchasing power parity to calculate. For example, the Japanese restaurant to eat 10 times more expensive than China. According to the official exchange rate, also prepared a meal, the Japanese restaurant on the creation GDP 10 times larger than the Chinese restaurant, so naturally more and more errors. International scholars are now increasingly used this method to cross-country comparisons, the most prestigious British economic historian Angus Maddison has done research. He used purchasing power parity calculations and concluded that China's GDP in 1992, more than Japan.

Second, household net worth. There is a Chinese tradition of the world's most powerful home buyers, so the family net assets (ie property, savings, stocks and other assets, minus debt) more than the per capita GDP reflects the real situation of a country the real people. I do not the Japanese data, only more developed than Japan's U.S. data. According to March 2010 Statistics released by the Federal Reserve, the financial crisis. The average American family has shrunk 25 percent of total assets, fell to 2004 levels. This year, the median U.S. household net worth of 9.3 million. The other statistics the median U.S. household net worth is defined as 84,000 U.S. dollars (see March 23, 2010 the "U.S. News And World Report"). According to one U.S. dollar equals 6.8 yuan's exchange rate, the former is equivalent to 630 thousand yuan; which is equivalent to 570,000 yuan. Even at the highest 2007 median U.S. household net worth is 15 million dollars, about 100 million yuan. I do not have the authority of China's household net worth of data, I estimated that the net assets of 570,000 yuan families -63 million in total several thousand million, perhaps billions. 30 years of reform and opening up, the Chinese growth rate of wealth, no country in the world comparable. We should not learn American over-borrowing, but I think as long as the Chinese people's property, assets properly activate, China could become the world's largest consumer market.

China's total economic output than Japan's real significance is that we have worked out a general line with China's national conditions and public sentiment model of development, while Japan has become lost. An important feature of the Chinese model is dynamically promote the development of the whole country. We give conditions for a better first developed a large area, and bring the whole country's progress. In my opinion, today's China has become a 3 billion people around the "quasi-developed plate." I use this concept, because the plate has been developed with the main characteristics: average life expectancy has reached 75-80 years old (Beijing and Shanghai, the average life expectancy was over New York); bustling commercial, infrastructure and the level of both higher than the average level of developed countries: according to purchasing power parity GDP per capita reached the level of moderately developed countries; the majority of urban housing standards (the average size and quality) than Japan and Hong Kong, China; home ownership rate than developed countries; per capita education level of the average level of developed countries; the overall scientific and technological capacity higher than the developed countries. The reason I also keep "accurate," the word is that some aspects of this section have not yet reached the level of developed countries, such as environmental indicators, civic and cultural quality, so we should be modest, to continue their efforts to learn other people's strengths , for
come from behind.

Chinese model brings a welcome for the whole country, "28 effect." The so-called "28 effect" refers to any group of things in grasping the key can generate 20% of the effect of 80%. This is a common phenomenon in our lives: 20% of a company's customers can create 80% of the proceeds; 20% of the backbone of an enterprise can bring 80% of the staff. 20% of our "quasi-developed plate" is driving the development of China's 80% of the region. Now the "western development strategy," it is this 80% of the region, continue to Cai Yong, "28 effect", Zhuazhu 20% of the Guanjianchengshi group to stimulate the development of the Midwest's progress Zheng Ge. I think the future trend of China is the "28 effect" continues to expand and extend until the full realization of the modernization of the whole country.

Today, the rise of China, is a different quality of the country rise, is a five thousand years of civilization and the modern state form of overlapping "civilized nation" to rise, a rise of a new development model is an independent political discourse rise. These are the Chinese economy is larger than the true significance of Japan.

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