Improvement in U.S. household consumption expenditures help improve China s exports

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Improvement in U.S. household consumption expenditures help improve China s exports Percent change from preceding year Percent change from preceding year 8 50 6 4 2 0-2 China s exports to U.S. (R) U.S. household consumption expenditures (L) 40 30 20 10 0-10 -20-4 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010-30 Sources: U.S. Bureau of Economic Analysis, IHS Global Insight, and China Statistics Monthly.

China GDP and total exports Annual percent change, 1998 to Q1 2010 14 40 13 Exports (R) 30 12 11 10 9 8 GDP (L) 20 10 0-10 7 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010-20 Sources: National Bureau of Statistics of China, IMF World Economic Outlook, October 2009.

Foreign direct investment and exports China s FDI net inflows and total exports Current US$ billions Percent change from preceding year 160 Exports (R) 40 140 120 100 FDI (L) 30 20 80 10 60 40 0 20 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008-10 Source: National Bureau of Statistics of China, World Bank.

Inflation creeping up Sources: CEIC, World Bank.

Real estate prices have risen rapidly Sources: CEIC, World Bank.

Investment growth in China Sources: CEIC, World Bank.

China s budget deficit Sources: CEIC, World Bank.

China s investment in energy projects with private participation and electricity usage US$ billions kwh per capita 5 2500 Investment (L) Electricity usage (R) 4 2000 3 1500 2 1 1000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 Sources: World Bank Private Participation in Infrastructure Project Database, International Energy Agency, Energy Statistics and Balances of Non-OECD Countries and Energy Statistics of OECD Countries.. 2007 2008 500

China s health-care reform The plan announced by the State Council in April 2009 aims to invest RMB850 billion to provide basic medical services to the population by 2011, with the long-term goal of rolling out universal coverage by 2020. Each province will select one to two cities as the trial bases for setting up a public hospital network.

Green GDP in China Economic losses caused by environmental pollution reached $64.7 billion in 2004, accounting for 3.05% of GDP. Source: China Green National Accounting Study Report 2004.

Environmental degradation costs China, percent of local GDP, 2004 US$ billions 45.0 40.0 Costs (L) Percent t(r) 35.0 30.0 25.0 20.0 15.0 10.0 5.0 Percent 3.6 3.5 3.4 3.3 3.2 3.1 3.0 2.9 2.8 2.7 0.0 Eastern Central Western 2.6 Source: China Green National Accounting Study Report 2004.

Carbon dioxide emissions China vs. U.S., per capita, 1950 2006 Source: Carbon Dioxide Information Analysis Center.

Carbon dioxide emissions China vs. U.S., indexed growth, 1950 2006 Source: Carbon Dioxide Information Analysis Center.

Total carbon dioxide emissions from fossil fuels China vs. U.S., 1950 2006 Source: Carbon Dioxide Information Analysis Center.

China s labor picture Average wage per worker and labor productivity growth Percent change from preceding year Percent change from preceding year 15 35 Productivity growth (L) 30 10 25 5 20 15 0 10-5 94 95 96 97 98 Average wage per worker (R) 99 00 01 02 03 04 05 06 07 08 5 0 Sources: The Conference Board, China Statistical Yearbook, 2009.

Per capita annual income China, urban vs. rural, indexed growth, 1990 2008 Indexed growth 1,200 Ub Urban householdsh 1,000 Rural households 800 2001-2008 growth Urban: +130.1% Rural: +101.1% 600 400 200 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Source: China Statistical Yearbook, 2009.

Cost of living 2009 City 2009 rank 2008 rank Tokyo 1 6 Paris 3 2 Copenhagen 4 3 Oslo 5 1 Geneva 9 12 Hong Kong 11 28 Chicago, Los Angeles, New York 23 39 Source: Economic Intelligence Unit, 2009. London 27 8 Shanghai 29 45

Shanghai Composite Index Source: Yahoo Finance.

Chinese Gross Domestic Product Year/year percentage change Source: China National Bureau of Statistics.

Total loans of Chinese financial institutions Change from one year ago, trillion Yuan Source: People s Bank of China.

Chinese residential floor space completed Year/year percentage change, 3-month moving average Source: China National Bureau of Statistics.

Chinese consumer price index Year/year percentage change Source: China National Bureau of Statistics.

Chinese exports $ billions Sources: World Trade Organization and China Ministry of Finance.

Chinese Yuan per U.S. Dollar Source: St. Louis Federal Reserve.

The Chinese Economic Revolution Capitalism is Reintroduced to China China s Gross Domestic Product, 1980 to 2009 Purchasing-Power-Parity Valuation in Current US Dollars; Source: IMF