Why China Works
1. Answer the questions on the text:
1) How does the author view the Chinese economy?
It is the most important bright spot in the world economy under the global recession, the only major economy that is likely to show significant growth this year, and the only one that routinely breaks every rule in the economic textbook.
2) According to the author, why can the Chinese economy perform so well?
(1) the capacity for state control by the Chinese government.
(2) its rejection of exotic financial innovations that are the melting core of the global credit crisis.
(3) the integration of its economic policies between traditional market tools and state control measures.
3) In what way does the author imply that western economists are erroneous in their bias toward “China’s market economic system”?
The United States and Europe are moving toward state control by nationalizing their banking and car industries, and imposing heavy new regulation on the financial industry.
4) What is the view of Stephen Roach on the Chinese economy system?
Investment is the backbone of sustainable growth in the Chinese economy, which works more effectively than other market based systems in times of economic stress.
5) Why can China work in the eye of the author?
It has followed a radical pragmatism focusing on a slow but steady shift toward freer markets.
6) What is regarded as the strategic thinking of the Chinese leaders in market reforms?
They understand even under the serious financial crisis that it can stabilize the Chinese market and economy to introduce more sophisticated forms of securitization, including stock index funds, corporate bonds and other debt products. They also realize that, in the course of doing this, they should learn from the mistakes the westerners have made.
7) What is the example given to illustrate the steadiness of the Chinese leaders in their policy execution?
They continue to allow the value of yuan to rise despite of the American charges and the need for export competitiveness by their own enterprises.
8) What is “shock therapy”?
It is the economic policy adopted in Russia from 1991 to 1992 that totally deregulated prices and lead to a runaway inflation. It proved to be all shock and no therapy.
9) In what ways does the Chinese economic system work efficiently?
It can get things done quickly, move in a coherent manner, and marshal its people and resources to a common target: economic growth and prosperity.
11) What are the Internet and public opinion used for?
For putting pressure on local officials and influencing policy decisions.
2. Fill in each blank of the following sentences with one of the phrases in the list given below. Make changes when necessary.
1)At a time when the need is growing for mental health services, many countries are unfortunately cutting back on its spending.
2)There is an increasing number of people out of work. But the western media often unfairly label them as lazy and reliable.
3)Now that the flow of oil has been stopped by BP, the impact of all the spilled oil and natural gas is still being measured.
4)Once again its ability to steer economic policy will be tested against the ability to deliver on services and projects aimed at growing the economy and jobs.
5)Housing prices are incredibly high today. But he bought his house for a song about five years ago.
6)As people are complaining high prices, especially those related to daily necessities, the government feels rather urgent to hold down inflation rate immediately.
7)Under the new economy policy investors are invited to buy into state-owned enterprises.
8)Since a serious gun shooting occurred in Arizona last week, security concerns have trickled down to all places, including residential buildings.
9)Social unrest is a daily occurrence in the country nowadays. It is in the last place when it comes to investment for multinational companies.
10)Efforts to ban smoking in China are so effective yet. Some chain smokers never think of quitting while many others have battled in vain to quit.
3. Match the terms in column A with the definitions in column B:
1)financial innovation A) A reduction in the general availability of loans (or
credit) or a sudden tightening of the conditions
required to obtain a loan from the banks.7
2)stimulus package B) A non-bank entity or organization such as
investment companies and mutual funds that
invests in large quantities. 8
3)overheating C)A legal entity created by a government to undertake
commercial activities on its behalf. 6
4)stamp tax D) The trading of a corporation's stock or other
securities (e.g. bonds or stock options) by
individuals with potential access to non-public
E) An industry that requires large amounts of capital, machinery and equipment to produce goods. 5
5)capital-intensive sector F) Generation of new and creative approaches to
securities, money management or investing. 1
6)state-run firm G) An economy that is expanding so rapidly that too
much money is chasing too few goods and
economists fear a rise in inflation . 3
7)credit crisis H) tax levied on certain legal transactions such as the
transfer of a property such as building, copyright,
land, patent, and securities. 4
8)institutional investor I) A plan or a series of measures taken by a
government to jump-start its ailing economy,
generally as a part of its fiscal policy. 2
10) insider trading
4. Translate the following passage into Chinese.
5. Read the following text and choose the best sentence from the list (A-E) below to fill in each of the gaps in the text.
1)It assembles more toys, stitches more shoes and sews more garments than any other nation in the world.
2)China is home to 1.3 billion people and has 100 cities of more than a million people.
3)Even at 25 cents an hour, Chinese workers cost more than laborers in the poorer countries of Southeast Asia or Africa.
4)Indeed, the country's embrace of market economy over the last decade and the government's insistence that farmers fend for themselves are combining forces to all.
5)That disparity has set in motion the largest human migration in history.
China: The next branding superpower?
1.China and the U.S disagree ________.
A.whether the Chinese should buy more
B.over who dominates the bilateral trade
C.whether the value of RMB is deliberately held down
D.over what the Chinese consumers should buy
2.The Americans assume that China will remain ________ so that it will continue to import American higher value added products and services.
A.a manufacturing superpower
B.a developing country
C.a service-based economy
D.a regional economic power
3.By moving up the value chain, China intends to become a ________.
4.According to the author, the work of branding in China would depend more on ________.
5.With better access to Chinese market for foreign companies, what do Chinese policy makers fear?
A.Chinese consumers will prefer famous foreign brands.
B.Chinese brands are unable to move up to the high end of the brand chain.
C.China can also add values through marketing and distribution.
D.China will have to spend billions building brands.
6.The Space Rate between the U.S. and the Soviet Union is mentioned to reflect ________.
A.military competition during the cold war
B.the anxiety of the Americans in the space rate
C.national economic security in China
D.the national anxiety of China over their brand competitiveness
7.The author believes in less than a century the consumer trends in the world will be overwhelmingly dominated by ________.
C.such brands as Coca-cola, Google, and Toyota