Day Nine

This morning, before we had our breakfast before our first lesson with our Chinese lecturer, we had our breakfast in Cheong Rui’s unit. Cheong Rui and Hui Xin prepared breakfast for us in the morning. The sandwich was fantastic. It’s like back to home feeling. We are quite sick of the food here.

Our lesson was about the China economic. We learnt that the government in China has special systems. They first have Central Government to control the financial economy of China, and then they have local government to take good care of the residents. (Unlike Singapore, we only have one government.) We were told that there are some problems with the GDP in China. To achieve the targets, or to compete against other local governments, they mark up their GDP. Therefore, the central government will take action against these moves.

The taxation in China used to be value added tax (VAT) (33%), Cooperate tax (17%). This is the main attraction that brought in many foreign investors during the open market of China. Then, the government changed the system. It became a balance tax between the (VAT), and cooperate tax. Both became 25%. ( VAT has the same meaning as GST)
In year 2008, China became the third largest economy in this world since its join to the WTO in year 2001. China is very strong in the global economy as it plays a big role.
In year 1989-1982, China economy went down rapidly. The reason is because the government made one biggest mistake. They used army forced; tank, to kill the universities students that were protested against the government. The reason of the riots is because the market just opened, and the governments are corrupted, economy was not fast enough. After the news spread, people felt angry and withdrawn their investment in China, in the way of protesting. Therefore, the economy went down.

Basically, the economy of China are made up of Primary (agricultural), Secondary (Industrial), and Tertiary (goods and services). In the past, the Chinese economy depends more on agricultural. However, they have moved agricultural to secondary and tertiary sector slowly.
We were also told that Singapore depend more on tertiary sector, which is around 60%. However, China depends around 33% on tertiary sector.

Tonight, we had our spaghetti as our dinner. Our spaghetti was simple, simply spaghetti, sausages, crab meats, and canned sauce. Although it was simple, but we like it. (seems like Han Soo enjoyed the meal too. HeHe).